Adding Employee Payroll

There are two types of main compensation:

• a salary – a fixed monthly or yearly amount to be paid out on a regular basis
• a wage – an hourly rate which employees get based on the delivered work hours

Only those employees, who have been assigned to one of the two types of main compensation, can be assigned further pay supplements and can be included in the company payroll schedules and reports.

Adding employee's payroll

An employee can be assigned to a payroll (or a main compensation) in two places: in their profile and in "Team Payroll" of the Payroll module. Only users having a "Business Administrator" role can add, edit and further manage employee pay outs. 

To assign a payroll within an employee profile:

• Go to "Team" and then select the profile of an employee
• Switch to the "Payroll" tab
• Click on "Add employee payroll" button to open the payroll editor
• Set the amount and choose how the employee is being compensated: per month, per year or per hour
• Choose the date from which this compensation is valid. You may choose the end date for the compensation, after which the employee will stop getting this compensation. If you leave it as is, this compensation will be valid indefinitely.
• You can optionally add some comments for this employee's compensation, if you need to.
• Click "Add employee payroll"

The page should now show the employee's main payroll and will enable you to choose further compensations which you might want to assign to an employee.

To assign a payroll within the Payroll module:

• Go to "Payroll"
• Switch to "Team payroll" tab
• At the top bar, click "Add" and choose "Add employee payroll"
• Go through the same process as described in the section above

Changing employee's payroll

To change a payroll for a particular employee, you go through the same steps as described above. The only detail which you might want to consider is the validity date. If you leave the "Valid to" date of the previous payroll empty, the system will automatically add the last day before the validity date of the new payroll.

For example:
Peter's current salary is 1000 Euros per month, starting from January 1st. In June Peter gets promoted and thus should get 1200 Euros per month. So you go to Peter's profile, click "Add employee payroll", add a monthly pay of 1200 valid from June 1st and save it. In the background, the system will automatically add May 31st as the "valid to" date for the current pay of 1000 Euros for Peter.

Another example:
It has been arranged that Peter should get 1100 Euros per month starting May 15th. He already has a monthly salary of 1000 Euros per month valid from January 1 and 1200 Euros per month starting June 1. Now when you add yet another pay starting May 15th the system will ask you to make a decision:

• Should this new 1100 Euros salary overwrite the one starting June 1st? or
• Should this new 1100 Euros salary be a temporary change before 1200 Euro kicks in on June 1st?

Depending on your choice the system will arrange the payrolls and validity dates automatically.

Although the system is able to make some smart decisions, we encourage you to check the validity dates and amounts so that these reflect the correct payroll you've meant to setup.