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Monthly Salary - How to Add Payroll Policy?
Monthly Salary - How to Add Payroll Policy?

Let's take a company with monthly salary employees and once-a-month payment as an example on how to create a Payroll Policy;

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Written by Workstem CS
Updated over a week ago

The pay run calculation of the system runs according to the payroll policy. As the first step in the Payroll setting, we need to:

  1. Create a Payroll Policy

  2. Assign a payroll policy for each employee

Let's take a company with monthly salary employees and once-a-month payment as an example on how to create a Payroll Policy:

Step 1

Click [Payroll] > [Settings] > [Payroll Policy] > [Settings]

Enter the payroll policy page, click the blue button "+ New" in the upper right corner

Step 2

After entering information on the payroll policy basic info page, click [Save]

Payroll policy setting instructions:

  • Payroll policy name: Customizable for easy identification

  • Pay Period: Make the corresponding selection according to the actual needs of your company. Once a month, many times a month, weekly, double weekly, and half monthly payroll

The first pay run of this payroll policy will start from:

  • It is used to set the start year and month. For example, after selecting 2020-10-01, the system will calculate the salary from 2020 October and the salary calculation period is from the 1st to the end of the month.

The setting of [Active days] affects the pro-rata calculation of monthly paid for employees who enter or leave in the middle of the month. Most companies will choose the first type [Periodic calendar days].

Formula description:

  • Periodic calendar days: Basic Salary * working days in the month / total days in the month

  • Working days in cycle: Basic Salary * Employee worked days of the month / total working days of the month ( the working days will be defined by "Leave Policy". If there is no leave policy, the default is Monday to Friday)

  • 21.75 (annual average working day): Basic Salary * Employee worked days of the month / 21.75

Step 3

Assign a payroll policy to the employees

In "Employees", "View" employee files> "Employment & Payroll Information"> "Change", select the newly added payroll policy in "Payroll Policy" and click "Confirm".

After completing the employee's payroll policy setting, you can start to set pay items and add payroll data.

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If your company has the following scenarios, you can create different payroll policies to fulfill the needs:

  • Having both Monthly and Hourly salary employees

  • Different payroll periods (Once a month, weekly...etc.)

  • Different Pay Cycles

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