Wage entries

You can post variable wage entries in Profit in the Enter wage entries entry program. Fixed wage entries are recorded in the properties of an employee.

Description

A wage component is analogous to a black box that performs part of the wage calculation. To make its calculations, a wage component requires values, referred to as parameters, and a formula - the wage component’s calculation rule. The wage component calculates its value using the parameters and the calculation rule.

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.

 

Level

Pension premium percentage

1.

CLA

 4%

2.

Employer X.

 

 

Employer Y.

5%

3.

Employee J.

6%

4.

Entry program

 
  • 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.

The CLA and the term of employment used for the wage processing are linked in the employee’s contract data. If the employee switches to another CLA or term of employment, you must add a new contract line for this purpose. You can only update the wage components of the linked CLAs for each employee.

Employees have a contract with an employer. Because, where possible, the salary variables of the wage components have been given a value at all parent levels, you only need to enter values for the employee that are specifically applicable to that employee.

Example:

The following values have been recorded at the highest level, that is the CLA, for the travel expense allowance wage component:

  • From 01-01-2010 to 31-12-2010: € 125.00
  • From 01-01-2011: € 130.00

    Based on the situation determine the level at which you will record the values:

  • An allowance of € 115.00 is agreed upon with an employee for the period 01-01-2010 to 31-12-2010. This has been recorded for that employee. From 01-01-2011 the employee is subject to the default regulation. By recording the end date as part of the agreement at the employee level, the value (€ 130.00) recorded for the wage component in the CLA is automatically adopted effective 01-01-2011.
  • An allowance of € 120.00 is agreed upon with one employee. This is recorded for that employee.
  • A monthly reimbursement that is dependent on the actual travel costs incurred is agreed upon with yet another employee. For this employee you post a wage entry each month with the amount to be reimbursed that month.

    This procedure is preferred over individually recording the travel expense allowance for each employee. For example, if in the latter case 25 employees receive the same allowance, and this allowance is increased in the new year, you would have to adjust this amount for these 25 employees.

Preparation

Procedure

  • Fixed wage entries

    A fixed wage entry is an entry that is valid for multiple periods. Fixed wage entries are posted by adding wage components to the employee in Profit.

  • Variable wage entries

    You can post variable wage entries in the Enter wage entries entry program.

Also see