# How payroll works

Payroll in BlueOneHR is organised into sections, each covering a different part of the cycle from
setting up how people are paid through to producing payslips.

<div class="bon-video">
<iframe src="https://www.youtube-nocookie.com/embed/b7PebH00XPU" title="From contract to payslip: how monthly payroll works" width="560" height="315" frameborder="0" loading="lazy" allow="accelerometer; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>
<p><a href="https://www.youtube.com/watch?v=b7PebH00XPU">From contract to payslip: how monthly payroll works</a></p>
</div>

## The sections

| Section | Covers |
|---|---|
| **Overview** | The payroll dashboard: contracts, payslip counts, and recent payroll runs. |
| **Configuration** | [Contracts](https://docs.blueonehr.com/books/payroll/page/contracts), [Pay Grades](https://docs.blueonehr.com/books/payroll/page/pay-grades), [Pay Components](https://docs.blueonehr.com/books/payroll/page/pay-components), [Salary Templates](https://docs.blueonehr.com/books/payroll/page/salary-templates) and [Compensation Policies](https://docs.blueonehr.com/books/payroll/page/compensation-policies) — the setup that decides how someone is paid. |
| **Payroll Operations** | The Payroll Register (running payroll), Payslips, Allowances, Deductions, Bonus, and Full & Final Settlements. |
| **Employee Compensation** | An employee's compensation as actually assigned, distinct from the templates and policies that define it. |
| **Finance** | Where payroll figures meet the organisation's books. |
| **Compliance** | Statutory obligations that arise from payroll. |
| **Governance** | Approval and oversight of payroll activity. |
| **Automation** | Scheduled and automated payroll tasks. |

![The Payroll overview dashboard: 43 contracts, 101 payslips, contract/payslip status tiles, and recent payroll register runs from April through July 2026](https://docs.blueonehr.com/uploads/images/gallery/2026-10/gTQpayroll-overview-dashboard.png)

## The one fact that explains most payroll questions

**Payroll only computes for an employee who has an active contract.** An employee can exist in the
directory, be assigned a department and a shift, and still not appear in a payroll run — because
nobody created their contract, or the contract is still a draft. If an employee is missing from a
run, check [Contracts](https://docs.blueonehr.com/books/payroll/page/contracts) before anything else.

## What to read next

- [Contracts](https://docs.blueonehr.com/books/payroll/page/contracts)
- [Running payroll](https://docs.blueonehr.com/books/payroll/page/running-payroll)
- [Payslips](https://docs.blueonehr.com/books/payroll/page/payslips)