Payroll Management

This module comprises of all the payment functionalities of employee. Here you can set up rules of payment, Generate salary, Bonus Calculation etc.

1) Create Payroll Item
Process: Go to Settings --> Payroll --> New Payroll Item
Entry Process:
We have categorized Payroll Items into four types. 1. Income  2. Deduction  3. Addition and 4.Tax
Select Type of payroll item, Type name of the item. Then select which type of calculation is for this Payroll Item. Then write amount / percent figure into the amount / percent field. If this payroll item needs to multiply with something like Overtime, Holiday Present or attendance etc.Then select  the rate. Here you can see lot of options. Just select from it.

Expense/Liability Information:
For Income & Addition type Items, select Debit account as Salary expense or its sub account & credit account as Payroll account payable or its sub account. For Deduction type Items, select debit account as payroll account payable and credit account as salary expense.
Example:
Suppose an employee came late in office 3 days then his basic salary of 1 day should be deducted. If employee is 9 days late then how to find out salary deduction ? That employee basic is $12 000 & working days of this month is 20. Calculation method: In General, 1 day basic salary=12000 * (1/20) = 12000 * .05 = 600 for one day. therefore for 9 days = 600*3=1800 BDT.

In our software: Select “percent” from “calculation”. Then enter the value 0.05. Then click on “is rate”. Select from multiply with “Late absence”.

2) List of Payroll Items
Process:
Go to Settings -->Payroll -->List of Payroll Item
Entry Process:
List of payroll items which are using into the company pay scales with individual calculation process. You can edit / delete Payroll Item from here

3) Create a Pay scale
Process:
Go to --> Settings >> Payroll >> New Pay scale
Entry Process:
Pay scale is a group of Payroll Items which is being used to calculate salary by applying. Each & every Payroll Item are included in a single row. Write the name of the Pay scale & put the pay scale amount into the amount field. Select Payroll Item row which is not required then click on Minus (-) icon to remove & save the Pay scale.

 

Note: You can set pay scale amount “0.00” initially. But this amount is configurable at the time of Employee creation. You can set a single Pay scale for multiple employees with different pay scale amount.

4) Create Payroll Schedule & Post Schedule
Process: Go to: Settings -->Payroll --> New Payroll Schedule
Entry Process:
Payroll schedule is a process of calculating salaries according to its category. You have to assign a schedule to an employee for his salary calculation. You can manage two types of schedule through LinesPay (HR & Payroll System). 
1. Regular 2. Hourly.

Frequency:
1. Daily: This frequency should applicable for the schedule which is being calculated Day to Day basis.
2. Monthly: This frequency should applicable for the schedule which is being calculated monthly. Note: Initially select schedule type as Regular for Salary calculation.

 

5) Salary Calculation
Process:
Go to: Payroll --> Active Payroll Schedule
Entry Process:
In this section, you need to post a payment schedule at first. To post a schedule, you need to click on Post Schedule button which is on right top corner. Then select schedule. Now you must set up salary calculation date range & payment date.

Now click on Attendance to calculate attendance data. Click next to calculate salary. Now post journal.

The very next step is payment .First step is to select payroll schedule, Date & Account set up. After that, you need to select how many employee's salary are going to be paid. Then create a payment voucher.

 

Finally you need to approve payment to complete salary calculation procedure.

 

6) Pay unscheduled payment (single employee)
Process:
Go to: Payment--> Unscheduled Payment (single employee)
Entry Process:
Step 1 : At first you should create a payroll item according to description field. Select the current date, employee name, payroll item, payable amount & accounting information

 

 

Step 2 : You can approve, reject, pending for example; " Tiffin bill " from payment list.

 

7) Pay unscheduled payment (Multiple employee)
Process:
Go to payment--> unscheduled payment (multiple employees)
Entry Process:
Step 1: Here you can fill up the payment create date, select effect on payroll item and then select accounting information field carefully.
 

Figure: Unscheduled Payment –Payroll Item& Accounts Select

Step 2 : Select the employee, who is eligible for mobile bill from employee list.

Step 3 : Put the value into amount field. Here delete & save option is available.

 

Step 4 : You can approve, reject, pending mobile bill from payment list.