This manual describes the new payroll module in ERPLY Books. The manual explains the following:
- ERPLY Books payroll
- Different tax reports
- How this module works?
- Deleting and editing the payroll
- Payroll report
1. ERPLY Books payroll
Payroll module helps to calculate taxes and add transactions separately to every employee. It’s possible to distinguish all accounts by workers. In addition, it’s possible to compile a working schedule and send out payroll statements. The dynamic structure of the taxes gives an opportunity to make rules for calculating days for vacation, sick leave and for other situations.
If you don’t have new payroll function available then you have to enable it. Type “Global Parameters” into dashboard search box and there you can add a new row
ATTRIBUTE_GLOBAL_USE_NEW_PAYROLL with a value “true”. This is also shown in the beginning of this video.
2. Tax reports
This payroll module has very flexible structure. Therefore, you can adjust the salary paying system according to the necessity. Because the system is so dynamic, it is possible to compile payroll for most of the countries.
3. How this module works?
3.1 Configuration of the payroll module
Configuring the payroll includes different stages
- Adding the employees – Employee name, contacts etc;
- Adding the initial data for employees – accumulated vacation days;
- Adding the payroll types – main payroll types that company uses;
- Adding payroll rules for employees;
- payroll taxes;
- payroll rules
- payroll accounts;
- Calculating the wages.
3.1.1 Adding the employees
First, add the employees under the contacts. Go to “Sales”/ “Purchase” > “Contacts”. Add a contact name to the contact sheet and make a tick into the cell “Is this a supplier?” and choose “Employee” into the “Type” cell.Then save. You can add all the information into the contact sheet that you need for an employee. You can always change and update the information.
18.104.22.168 Adding the initial data for employees
Type “Manage Employee Leaves” into the dashboard searchbox. There you can determine the accumulated vacation days. Into the cell “hours” add the accumulated amount of hours. When you add initial data for the employee, don’t pay attention to the date cells. Date cells are important when employee goes on vacation and you enter the information about that vacation.
3.1.2 Payroll types
For calculating the payroll, you need to add payroll types. Type “Payroll Types (AU)” into the dashboard searchbox or go “Settings” > “Payroll rules” > “Payroll types” to add different payroll types:
- Vacation fee
- Employment contract fee
- Additional payment
- Board member fee
- Sick leave fee
- Main fee
If you are dealing with some other kind of payroll type than previously mentioned, then you have to add a new payroll type by clicking on the “+Add” button. Enter the following information:
- Name – the name of this payroll type;
- Social tax;
- Income tax;
- Tax free;
- Pension insurance;
- Unemployment insurance (employee);
- Unemployment insurance (employer).
3.1.3. Payroll taxes
Add payroll taxes. Go to “Settings” > “Payroll rules” > “Payroll taxes”. You can add new rows by clicking on “+” button. You can add needed accounts to debit and credit account cells. Into the “Sum” cell add a tax percentage (e.g enter a 6% tax in the form of 0.06). Into the name cell add the tax name (e.g social tax, income tax etc.). Into the type cell choose:
- Employee tax – tax, that will be calculated off from net salary;
- Employer tax – tax, that will be calculated off from gross salary;
- Income tax – only tax free amount will be calculated off;
- Tax free – no taxes will be calculated off;
- Tax free (Add Q to employee settings) – for example, its amount depends on how many children do you have;
- Employer taxes (Qty) – Its amount depends on the tax law (AU, LT, LV);
- Employee taxes (Qty) – Its amount depends on the tax law (AU, LT, LV);
- Fixed value – a tax that’s always the same amount.
Choose an unique name for the “Alt name” cell (e.g incometax). The name must be written in one word.
3.1.4 Payroll rules
If you want your employee to be connected with some rules, then you have to add payroll rules. Go to “Settings” > “Payroll rules” > “Payroll rules”.
NB! If national tax rates change, then you have to change those rules in the beginning of the financial year. ERPLY Books doesn’t change tax rates, changes must be made manually.
Add the following information:
- Employee – when you haven’t added the employee, then you can do it in here;
- Payroll type – if it is different from the main salary, then it is wise to set it in the settings;
- monthly salary – when you don’t add the information there, you have to always set the gross salary manually
- Tax free
- Pension – Program doesn’t check automatically if the employee has the pension insurance, therefore add this information here;
- Unemployement insurance (employee);
- Unemployement insurance (employer);
- Project – add this when you want to add a default project to the employee.
3.2 Payroll accounts
Go to “Settings” > “Payroll Rules” > “Payroll Accounts” to determine different account for every employee. In addition, it’s possible to assign different account by different tax. For example employee no.1 social tax debit account is X and employee no. 2 social tax debit account is Y.
In system accounts (“Settings” > “Initial data” > “System accounts”) you can specify the payroll related accounts. If you have made an exception for employee (like previously described), then those account rules are more important than system accounts. Therefore, you can choose payroll accounts in system accounts and make exceptions in “payroll accounts” module.
You can calculate vacation days or sick leave days separately for every employee. Type “Payroll report” into the dashboard search box and in opened window, choose
the blue button “Timetable”. There you can assign the date range and how many hours employee has been on vacation or on sick leave. It’s also possible to add a project to employee.
3.4 Calculating the wages
Type “Payroll report” into the dashboard search box. Then choose the blue button “Add payrun” to calculate wages for every employee. Then opens a module and you can see that the payment is calculated for every employee by rules. If you don’t need to calculate payroll for every employee, you can change the payment type to unactive.You can add rules, delete rules and make corrections if you need to make some changes in settings. Always save the changes.
You can change in payroll table following fields:
- gross salary;
- net salary;
- payroll type: if payroll types are manually added then rules, that apply to payroll type will be added to the payroll;
- number of days worked;
- add new payroll types (e.g when employee was in a sick leave for three days, then a new row must be added for sick pay);
- change accounts.
NB! If you add many payroll types to one employee during one payroll calculation, then all the payroll types must have the same tax free sum, that was on the initial type (that’s because net salary is calculated on the whole salary.
4. Changing and deleting the payroll
You can change the payroll when you make a double-click on employee in payroll report. Then you can open the needed payroll. You can delete payroll under transactions- just delete the needed payroll transaction.
5. Payroll statement
You can print out the payroll statement after you have saved the payroll calculation. All the different transaction types will be printed on the payroll statement and these are compared with the beginning of this year. You can also print payroll statement in payroll report. Just make a double-click on employee and choose what kind of payroll types you need to print out and then click on “print”.
How to calculate wages when your country pays part of the tax (for example social tax)?
Add separate payroll type, where tax percent is 0. For “unit” add the sum that is payed by country (in gross salary). In payroll rules, add the usual payroll type for the employee. Add a row manually where you want to add needed payroll type and then mark “1” for quantity.
Where can I add initial data, for example accumulated vacation days?
Type “Manage Employee Leaves” into the dashboard searchbox. There you can determine the accumulated vacation days. Into the cell “hours” add the accumulated amount of hours. When you add initial data for the employee, then don’t pay attention to the date cells.
Do I need to add payroll rule only for employee’s main payroll type? Do I have to add sick leave and vacation days?
Sick pays and vacations are determined under payroll types. You can find this module when you type “payroll types” into dashboard searchbox. It’s not reasonable to write sick pays and vacations into payroll rules, because they don’t apply to employee every month. It’s easier to add those rules when it’s needed.
Main salary is calculated based on payroll rules. When employee is on sick leave or on vacation, then how I add those exeptions? Payroll types are added differently.
If you want to calculate sick pay and vacation pay as an extra for main salary, then open payroll report and click on a button “Add payrun”. Then opens a window, where you can start to compile payroll and add extra rows where you can add sick leave days.
When nationally set tax rates or tax free minimum amount changes, do these rules change automatically in ERPLY Books or do I have to set these manually?
Every year, ERPLY Books creates a payroll module, that takes into account that year’s tax rules. Payroll in ERPLY Books will still be calculated in payroll report, based on payroll rules. Therefore, if you have employees who have defined payroll rules, you should also check if they are in accord with nationally set tax laws.