Insert multiple rows without using CURSOR SQL Server 2014
From what I can tell based on the code you've presented, you can reduce it down to the following...

DECLARE @employeeid INT;

INSERT dbo.HRMS_PayrollInfo (PayrollFK, EmployeeIdFk, Eod_ReferenceFk, Amount, PaymentDate, Status, AlertActive, Entry_By, Entry_Date, Update_By, Update_Date)
SELECT
    26,
    @employeeid,
    er.Eod_RefFk,
    er.ActualAmount,
    GETDATE(),
    1,
    1,
    1,
    GETDATE(),
    1,
    GETDATE()   
FROM
    dbo.HRMS_EodRecord er
    --JOIN dbo.HRMS_Employee e
    --  ON er.EmployeeId = e.ID
WHERE
    er.Status = 1
    AND er.EmployeeId = @employeeid;