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:
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 and Salary Information"> "Employment and Salary Records"> "Edit", select the newly added payroll policy in "Payroll Policy" 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