The employee payroll is made up of many components and the components are named as payroll category in Fedena. It can have variable values based on formulas and conditions. The formulas for each payroll category can be dependent on other categories.
In Fedena, payroll categories are grouped into two types: Earnings and Deductions.
Earnings are all amounts paid to an employee for services rendered on an hourly, salary, or any other basis. For example, Basic Salary, Bonus, and so on.
Deductions are amounts withheld by the institution. For example, Provident Fund, Professional Tax, Income Tax, and so on.
The payroll amount for a category can have numeric values or variable values based on formulas and conditions. For example, a payroll category ‘Basic’ can have the calculation rule as ‘40%GROSS’.
1. Click on Module access icon > Administration > Human Resource > Payroll and Payslip Management as shown in Fig 1.
3. On the top right corner, click the Create payroll category button as shown in Fig 3.
4. Enter the following details in order to create the Payroll Category:
Enter the payroll category name as you want it to appear in the employee payslips.
Enter a unique payroll category code. You will use the category codes when defining payroll calculation rules.
Specify if the payroll category type is an Earning or Deduction.
Select the category value type to define how the amount for the category is to be calculated.
1. Numeric – If the value is a numeric constant, enter the amount for the payroll category.
2. Formula – Enter a formula to calculate the payroll category amount. Use the category codes that are listed on the right to create the calculation rules (By default Fedena provides category codes like GROSS, NWD etc.,)
3. Conditions with formula – Use the IF function along with specific operators to ask Fedena to test a condition and to return a value if the condition is met, and another value if the condition is not met (‘Default condition’). You can add as many IF conditions as you want.
- Click the Create category button.
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