# How payroll works

> Academium SMS Help › Human Resource
> For: School Owner, School Admin, Accountant
> Web page: https://helpcenter.academium.com.ng/academium-sms/article/sms-how-payroll-works
> Last updated: 2026-10-06

Payroll is under **Human Resource → Payroll**, and needs a plan that includes human resources. Each month follows the same steps:

| Step | Article |
| --- | --- |
| 1. Set up **pay grades** (once) | [Pay grades](https://helpcenter.academium.com.ng/academium-sms/article/sms-pay-grades.md) |
| 2. **Assign** each member of staff a pay grade (once, and when someone joins) | [Assigning pay grades](https://helpcenter.academium.com.ng/academium-sms/article/sms-assigning-pay-grades.md) |
| 3. Set up **approval levels** (once) | [Payroll approvals](https://helpcenter.academium.com.ng/academium-sms/article/sms-payroll-approvals.md) |
| 4. **Generate** the month's payslips, adjusting for anything one-off | [Running payroll](https://helpcenter.academium.com.ng/academium-sms/article/sms-running-payroll.md) |
| 5. **Submit** them for approval | [Running payroll](https://helpcenter.academium.com.ng/academium-sms/article/sms-running-payroll.md) |
| 6. Approvers **approve** them | [Payroll approvals](https://helpcenter.academium.com.ng/academium-sms/article/sms-payroll-approvals.md) |
| 7. **Pay** staff and record the payment | [Paying staff](https://helpcenter.academium.com.ng/academium-sms/article/sms-paying-staff.md) |

## Who is paid

Staff whose employment status puts them on payroll are paid: Active, On Probation, Corps Member, Intern and **On Leave**. Suspended and former staff are not. See [Adding and managing staff](https://helpcenter.academium.com.ng/academium-sms/article/sms-adding-staff.md).

## Deductions handled for you

- **PAYE** tax, worked out from your tax bands. See [Tax](https://helpcenter.academium.com.ng/academium-sms/article/sms-tax.md).
- **Salary advances**, deducted in the month chosen. See [Salary advances](https://helpcenter.academium.com.ng/academium-sms/article/sms-salary-advances.md).

## Reminders

**Catch Up** tells approvers when payroll is waiting for them.

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