A payroll period, in ERPNext, is a period for which Employees get paid for their occupation with the Company. Payroll period helps you define Tax slabs applicable for the period, making it easier to manage changing laws.
You can create Payroll Period by going to:
Human Resources > Payroll Setup > Payroll Period > New Payroll Period
You can add multiple tax slabs for the payroll period depending on the tax regulations. Note that you can use fields in Employee document in the Condition field to apply tax slabs based on properties of employees. Here is an example of how to define a tax slab for Employees who are aged between 60 and 80 years.
Note: Configuring Payroll Period is optional if you do not intend to use Flexible Benefits or Tax Slabs
Next: Payroll Setup