---
title: "How to Set up Payroll Cut offs?"
description: "Define and apply cutoff dates for payroll processing to ensure timely payment and record-keeping."
url: https://helpdesk.aanyahr.com/en/articles/226-how-to-set-up-payroll-cut-offs
collection: "Payroll (Set up)"
updated: 2024-05-15
language: en
---

# How to Set up Payroll Cut offs?

Define and apply cutoff dates for payroll processing to ensure timely payment and record-keeping.

**Payroll cut-offs** are essential for managing employee salaries and ensuring accurate payments. Let’s break down the process:

1.  **Understanding Payroll Cut-Offs**:
    
    -   A **payroll cut-off** refers to the specific period during which you collect and process employee data for salary computation.
        
    -   It determines which days’ work or attendance will be included in a particular pay cycle.
        
2.  **Setting Up Payroll Cut-Offs**:
    
    -   **Frequency**: Decide how often you’ll run payroll (e.g., monthly, biweekly, or semimonthly).
        
    -   **Cut-Off Dates**: Determine the start and end dates for each pay period. Common cut-off dates include:
        
        -   **1st to 15th**: Employees are paid on the 30th or 31st of the month.
            
        -   **16th to end of the month**: Employees are paid on the 15th of the following month.
            
        -   **5th to 20th**: Employees receive their salary on the 5th of the next month.
            
        -   **21st to 5th**: Employees receive their salary on the 20th of the next month.
            
3.  **Collecting Employee Data**:
    
    -   During the cut-off period, gather relevant information:
        
        -   **Work Hours**: Record the hours worked by each employee.
            
        -   **Leaves and Absences**: Note any leaves, holidays, or unpaid days.
            
        -   **Overtime**: Include any overtime worked.
            
4.  **Processing Payroll**:
    
    -   Calculate each employee’s earnings based on the data collected.
        
    -   Deduct taxes, contributions, and other withholdings.
        
    -   Generate paychecks or direct deposits.
        
5.  **Communication and Documentation**:
    
    -   Inform employees about their pay dates and cut-off periods.
        
    -   Provide pay slips detailing earnings, deductions, and net pay.
        

Remember to consult your company’s policies and local labor laws. If you’re unsure, reach out to your payroll department for guidance.

**Let’s outline the steps for creating cut off in AanyaHR:**  

1.  Go to **Payroll** \> select "**Cutoff**”.
    
    ![](https://staticfiles.gleap.io/ghelparticle/3kaknxaSj4QnZl5xEbhgy242cj7Vi8TavNDkWaj9okMaR41OqiIi2zLLvTFk1SSSlbprEpjTpTI.png)![](https://staticfiles.gleap.io/ghelparticle/5fxwwhGqitMopdpcQPbhEXQNgqhWuQAT5FcZWqy3Adw57tvBYd0yZd40Ws7cIHJFAVQqoSeZR1v.png)
2.  Click the “**Create”** button.
    
    ![](https://staticfiles.gleap.io/ghelparticle/AI5U25aBI2voyrpSA5DedUOpwPQkEHVdGF803ywt6pJcUgPnx8M68vUzumti4uTOnHd1lbyJplO.png)
    
3.  Fill out the necessary details below:
    
    ![](https://staticfiles.gleap.io/ghelparticle/UkpKJIsHArEetH329yEGkyzFrGk1gTdsnoPjF5tbKMu78reYAt5SZdvx44Fe2FDxrqc50StOazK.png)
    
    For guidance on the tabs shown, you can refer to the meaning or functions associated with tagging.
    
    **Cut-off Name** - preferred Cut-off Name
    
    **Payroll Type -** Payroll types such as Monthly, Semi-monthly, Weekly, or Daily
    
    **Payroll Cut Off** - Semi-Monthly, Monthly, or Daily
    
    **Search Year -** Remember to select the applicable year for the payroll cut-off to be created. \[Required\]
    
    **Active -** it's either Active or Inactive
    
    ![](https://staticfiles.gleap.io/ghelparticle/1Z2hlHYvFs1x3AYWYgRdUwwayc25RQBoy6MKLstN0M0NdReV9BFuY7TaE2V1b3OIDXMWjWom9At.png)
    
    If you are creating for the Monthly Payroll Cut-off you may refer to these tags:
    
    **Date From -** Start date of the cutoff.
    
    **Month -** Applicable Month for the Start date of the 1st cut-off. This may be either Previous Month, Current Month or Next Month
    
    **Date To -** Last date of First cut-off.
    
    **Month - A**pplicable Month for the Start date of the cut-off. This may be either Previous Month, Current Month or Next Month
    
    **Payday -** payout date of the cut-off
    
    **Month -** Applicable month for the pay-out date of the cut-off
    
    **Month -** Applicable Month for the Start date of the cut-off. This may be either Previous Month, Current Month or Next Month
    
    **Date To -** The last date of the cut-off.
    
    **Month - A**pplicable Month for the Start date of the cut-off. This may be either Previous Month, Current Month or Next Month
    
    **Payday -** payout date of the cut-off
    
    If you are creating for the Semi- Monthly Payroll Cut-off you may refer to these tags:
    
    ![](https://staticfiles.gleap.io/ghelparticle/cBJBupabCD9gniPHno07AAhadVCct2AszuzbFDIITQ1naiEnHKCUBZLW5SLtTRhYQzs03oRffor.png)
    
    **Date From -** Start date of the 1st cutoff.
    
    **Month -** Applicable Month for the Start date of the first cut-off. This may be either Previous Month, Current Month or Next Month
    
    **Date To -** Last date of First cut-off.
    
    **Month - A**pplicable Month for the Start date of the first cut-off. This may be either Previous Month, Current Month or Next Month
    
    **Payday -** payout date of the first cut-off
    
    **Month -** Applicable month for the first pay-out date of the first cut-off
    
    **Date From -** Start date of the second cutoff.
    
    **Month -** Applicable Month for the Start date of the second cut-off. This may be either Previous Month, Current Month or Next Month
    
    **Date To -** Last date of second cut-off.
    
    **Month - A**pplicable Month for the Start date of the second cut-off. This may be either Previous Month, Current Month or Next Month
    
    **Payday -** payout date of the second cut-off
    
    **Month -** Applicable month for the first pay-out date of the second cut-off.
    
4.  Created cut-off details will be automatically reflected in the columns below.
    
    ![](https://staticfiles.gleap.io/ghelparticle/XB4s4q6RipJVY1qXjIfU90aMcFzy0qLfdNaGGxw71M2NhOev5ReK0Vm1NqzrmFRepN2RI1KhPza.png)
    
5.  When you click the pen icon, you’ll discover the precise cut-off details. You can configure the lock filing date and approval date for timekeeping using this feature.
    
    ![](https://staticfiles.gleap.io/ghelparticle/8xMWVZ6eq6QeawJhml2nGO2dN5150LjxfTJjFPYF2t2O3T0UownWc4wOwdKy0PrCcczKA4nDFSu.png)
6.  You also have the option to modify the payout date.
    
    ![](https://staticfiles.gleap.io/ghelparticle/xSLrLPZVZIUSsdMzliEprVLqwqRo5OB5kg1DWawAQljT4ndsiHVtuFPT9cecMoxGQ7yiFiTGRkF.png)
7.  You also have the option to modify the Lock filing date.
    
    ![](https://staticfiles.gleap.io/ghelparticle/QXvo3UWLSmzYT020tTvPoUAxRV6Ux9BGrVEMk4UlzxSf8npqx1rOF5okBL5ftFKNx9gAtW5OnSl.png)
8.  Changing the Lock approval
    
    ![](https://staticfiles.gleap.io/ghelparticle/XZPMDsCYrxPIwBvrlMOfxoUzpraAOjC159gCbb1LK7cKCDqtK6GeZbqIq39xJeDhJucU2TE6ghN.png)
9.  Below is the final view of the setup for the Timekeeping locking and approval dates.
    
    ![](https://staticfiles.gleap.io/ghelparticle/v0IFirXpHocV6UsP9GoM5XjInSUgHFG2xwP6zidFHuaI5aNbrFqLSfX9nF5eb8glEuPHMe8ExMC.png)
10.  Click the **save icon** to save the cut-off details.
     
     ![](https://staticfiles.gleap.io/ghelparticle/w7ALnlLeeqqG498WKYZTspo9dcTt2OvKszfRi01BL6bMyNPY8YZXyZH9S71a8B0bPxby7gFmelJ.png)
11.  Click the **save icon** to store the created payroll cut-off.
     
     ![](https://staticfiles.gleap.io/ghelparticle/ugXbqHzXvfOv2KGX8gvEr2rQoDj1FF8rFfbbJHYnGf1ORUURGhxsRIB90jOxiqoaAbDMww52kll.png)
     

Go back to :

# [How to Set up Payroll?](https://helpdesk.aanyahr.com/en/articles/206-how-to-set-up-payroll.md)