Salary Details held against an Employee

Here are the Payroll related fields that need to be populated for all the employees in their respective Employee 360 profiles: 


Paygroup

Groups employees for the purposes of payroll processing. All employees in a particular Paygroup will have the same pay frequency and payroll calculation process.

Currency

The currency associated with the Paygroup that the employee is paid in.

Effective date

The effective date of this salary.

Annual Salary

The annual salary that the employee receives

Reason

This is for capturing any Reason why a salary change was applied to an employee. E.g. New Starter, Salary uplift, Promotion, etc. The list of reasons can be maintained in the settings.

Pay Rate Amount

This field can be used to capture the rate the person is getting paid, e.g. $10 an hour, etc. It does not feed to any downstream payroll applications.

Pay Method

This identifies how the employee is paid whether by cheque, direct debit or otherwise.

Payout frequency

This holds the frequency that the employee is paid at. If you are using Paygroups, this field is not required as the frequency will be held against the Paygroup.

Eligible Work hours

Hours the employee is eligible to work for a period. E.g. 40 hours per week.

Additional Details on Compensation

Any additional information in free text format related to this employee's salary.


Variable Pay/Commission:

Additional information around an employee's overall compensation package. E.g. What variable components are part of the employee's perspective pay for the year.




Recommended processes to manage Payroll data

New Starters

When creating an employee record, either directly from the employee 360 or updating a successful candidate to an employee record, the compensation tab is always available. It is recommended that you capture the employee's compensation information at this time. This includes the following details:

  • Employee's Paygroup

  • Annual salary

  • Effective Date (This will indicate the date from which the employee will be paid from)

  • Employee's Bank details 

  • Bonuses (if any).


Employee Salary Changes

The effective date of a salary change is a key driver to identifying when a salary becomes effective for an employee so always take care that this is captured correctly. The system will not allow an employee to have more than one salary effective at the same time. This means that when you are giving a new salary, you need to ensure that the effective dates are different.

  • To give an employee a new salary as a result of a promotion or uplift, it is always recommended to add a new salary with the effective date of the change. This ensures that the employee will be assigned the correct salary at the correct time.

  • If you have entered a salary value in error, then you can use the edit option to update the existing salary, this will update the salary row and will not create a new salary record. 

  • If an employee gets a new bonus, then ensure that this is recorded via the Add Bonus option and ensure that it has the correct effective date.