Employee (Payroll)
This part of the Help explains the payroll configuration at the employee level. Other Help topics related to the employee properties can be found in the HRM Help.
Description
The payroll configuration can be specified at various levels in Profit. The CLAs comprise the highest level in the payroll configuration. Profit has been set up to minimise deviations from the CLA at lower levels (by employer or employee). Profit calculates the correct value for each employee and each activated wage component on the basis of the employee settings (such as date of birth, age, job, table colour, etc.). On this basis, Profit, for example, automatically retrieves the correct value from the salary tables. Recording specific deviations at the employee level is generally not necessary.
Profit by default performs the wage calculation on the basis of the data available on the last day of the period to be processed. A number of exceptions apply to this principle that is explained in the following sections.
Employment start/end
Profit always applies a prorated calculation when an employee enters or leaves employment during a period. For example, when leaving employment, Profit will recalculate the period salary on the basis of the number of days that the employee is still employed during the last period.
Timetable and salary lines
If a period contains multiple salary or timetable lines, Profit can perform a weighted period calculation. This means that Profit calculates a weighted average of the salary or the part-time percentage on the basis of the relevant salary or timetable lines. Profit only runs the weighted period calculation if this is set up in the properties of the CLA. In the CLA you also specify whether Profit should base its calculations on working days or calendar days.
If you adjust the settings in the CLA to indicate that the weighted period calculation may not be used, Profit will base its calculations on the salary and part-time percentage that applies on the last day of the period to be processed. Changes that you specify to become effective during a period (for example, a wage increase) in that case always apply to the entire period.
Preparation
Procedure
- Timetable and salary
New timetable and salary lines for an employee are not always related to a full period. For example, a salary increase of timetable change can also become effective after the first day of a period. In situations like these, Profit can apply the Weighted period calculation. Profit automatically converts the salary or part-time percentage in the start period based on the number of days the new salary or timetable line applies to.
- Multiple simultaneous employments (Payroll)
The default in Profit is for an employee to have a maximum of one ongoing employment relationship with his/her employer. Profit, subject to certain conditions, also supports the use of multiple employments.
- Trainee in Payroll
You can pay a trainee in Profit.
- Employee paid per hour to fixed salary employee
If an employee switches from payment per hour to a fixed salary, you change the employment type.
- Fixed salary employee to employee paid per hour
If an employee switches from a fixed salary to payment per hour, you change the employment type.
- Pro forma employee
Often it is desirable to perform a pro forma calculation on the basis of an existing employee in order to assess the effect of changes.
- Employee changes sub-employer
An employee can change sub-employers (belonging to the same main employer) while retaining his/her cumulatives. This is necessary to ensure that the VCR calculation for the relevant employee is performed properly.