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Payroll Function Introduction
Payroll Function Introduction
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Written by Workstem CS
Updated over a week ago

As the user of payroll module, the first function you think about is pay run.

Before pay run, we should know which「Settings」+「Data」will affect the result ?

Staff Information

  1. 「Payroll Policy」will affect the employee's policy and period of pay run.

  2. 「Salary Type」will affect your method to calculate basic salary , which includes yearly, monthly, daily and hourly.

  3. 「Basic Salary」as the basic data of payroll will affect all the next pay run(Proportional calculation、No pay leave deduction、MPF contribution etc.)


If there is an employee’s salary type is monthly, and the basic salary is HKD 18,500. Then, select monthly from 「Salary Type」, and input HKD 18,500 in 「Basic Salary」of the Employment & Payroll Information interface.

If there is an employee’s salary type is hourly, and the hourly pay is 80 HKD. Then, select hourly from 「Salary Type」, and input 100 in 「Basic Salary」of the Employment & Payroll Information interface.

Attendance Module

  1. An employee’s 「Roster」decides whether the employee needs to work. Only when scheduled and clock in/out successfully can the employee’s 「 Total Working Hours」be calculated.

  2. The basic attendance data of employees’ clock in/out and the type of「Normal Hours」of 「Timesheet Application」will be calculated to「Total Working Hours」,to coordinate employees whose「Salary Type」is「Hourly Salary」to calculate「 Actual Basic Salary」.

  3. The type of「Overtime」of 「Timesheet Application」will be calculated to employees’ OT hours,including 「Working Overtime On Weekdays」,「Working Overtime On Rest Days」,「Working Overtime On Statutory Holidays」, which is to calculate「OT Allowance」of payroll module.

Leave Module

An employee’s 「Leave Policy」decides which 「Type」can the employee to apply for.It also decides which area’s 「Public Holiday」and 「Statutory Holidays」do the employee enjoy, how many days per week, and how many hours per day?

The setting of「Leave Policy」decides whether the leave is paid ? How long can I apply for an internship? When to provide for employees (Yearly, monthly) ? etc.

Payroll Module

  1. Your setting of 「Leave Policy」decides your pay cycles (weekly, biweekly, monthly, etc.).

  2. If you once preset/input 「Fixed Pay Items/Variable Pay Items」,which will be added to pay run.

「Fixed Pay Items」refer to a fixed monthly allowance, such as a fixed monthly communication allowance of 500 HKD, etc.

「Variable Pay Items」refers to the temporary income of employees, such as a commission of 2,000 HKD in September, etc.

MPF Module

  1. The setting of「MPF Scheme」determines how much the employee who owns the scheme needs to contribute. This ratio will affect the amount of deduction when calculating the salary.

  2. If a company provides 「voluntary contribution」to employees, the ratio will also affect how much deductions are made when calculating MPF.

Workstem Pay Run-Process Concept Diagram

The following is a simplified conceptual diagram of the salary calculation process, for reference only. If your company's situation is different, the items and data that need to be set will be different

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