The pay run calculation of the system runs according to the payroll policy. As the first step in the Payroll setting, we need to:
Create a Payroll Policy
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:
Click [Payroll] > [Settings] > [Payroll Policy] settings
Enter the payroll policy page, click the blue button "Add Rule" in the upper right corner
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].
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
Assign a payroll policy to the employees
In "Employees", "View" employee files> "Employment and Salary Information"> "Employment and Salary Records"> "Edit", select the newly added payroll policy in "Payroll Plicy" and click "Save".
After completing the employee's payroll policy setting, you can start to set pay items and add payroll data.
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