Payroll configuration

In Profit, a CLA contains a great deal of information about issues relating to the payroll configuration and terms of employment. For the payroll configuration, this can include wage components, calculation bases, salary tables and wage scales. These elements form the core of the wage calculation in Profit Payroll.

Description

Profit Payroll has a hierarchical structure. The principle that applies is that you as much as possible should specify the data at the highest possible level. The highest level in the salary processing is the Basic CAO or Profit CLA; the employer is the intermediate level and the employee is the lowest level. Values specified at a high level automatically operate at all underlying levels.

In a diagram, this looks as follows:

You can specify values at the following levels:

• CLA

  The Profit CLA forms the basis for the wage calculation in Profit. Each Profit CLA contains the same basic payroll configuration, supplemented with sectoral and industry regulations that form part of the relevant CLA. AFAS already supplies the most common values for the parameters of the wage components at the Profit CLA level. You cannot change this level yourself. However, you can adjust many of these values at the Customer CLA level, as necessary.

• Employer

  You can adjust the wage components of linked CLAs for each employer. The modifications only apply to the employees of the relevant employer who uses the relevant CLA.

• Employee

  You specify wage components at the employee level if you want to deviate from the configuration at a higher level. Profit will include the configured wage components in the wage processing during the term of validity you specified.

• Entry program

  For incidental changes (such as an incidental expense allowance paid to a specific employee), you can enter a variable wage entry.

Example:

Payroll configuration levels.

• A 4% pension premium has been specified at the highest level for a wage component.
• It is possible to deviate from this at the employer level by changing the percentage to 5%. A 4% pension premium will now be deducted for all employees, except for the employees who are part of this specific Employer Y.
• You can also specify a deviating percentage for a single employee. This only applies to the relevant employee of course.

In addition, all values that are recorded are time-dependent. This means that at a minimum a start date must be entered and that in the event of changes a new value is added with a new start date as a result of which the end date of the previous value is automatically determined.

Preparation

• Add and configure a CLA

Procedure

• Wage component in CLA

  A wage component is analogous to a black box that, with the help of a calculation rule or a calculation formula, performs part of the wage calculation.

• Calculation lines

  A calculation rule is at the heart of a wage component. It is the mathematical formula that gives the wage component its ultimate value. Each calculation rule is linked to at least one wage component.

• Record wage components for an employer

  You can define wage components for the employer in Profit.

• New wage component

  To add a new wage component, you can activate or copy a wage component in Profit.

• Parameters

  A wage component uses parameters. The parameters assign values to the wage component that are used by the calculation rule to perform its calculations. This means that you do not really assign a value to a wage component, but rather to a parameter.

• Calculation bases

  A calculation basis is a container in which different wage components are included. The sum of the value of these wage components determines the ultimate value of the calculation basis.

• Salary tables

  A salary table contains a series of values that are dependent on certain features, such as age. Profit refers to these features as dimensions.

• Wage summaries

  A wage summary collects wage components, calculation bases and parameters under a single header. This allows you to easily combine values from various wage elements and display them in a report or other output form.

• Configure wage entries

  In Profit, for each wage component, you can specify whether you will use the wage component for variable and/or fixed wage entries.

• Entry logging

To clarify the RAE entries during salary processing, you can make use of the entry log. An RAE entry results from a CLA update, a wage entry, a change to a parameter or a change to employee data. The wage entry, change to a parameter or change to employee data can be viewed using the entry log. It is therefore essential that the entry logging is configured properly.

The entry logging functionality provides an additional control option: when errors are made you can discuss them with the responsible employee.