Direct Benefits are regular and ad-hoc entitlements that are immediately owed (payable) to the Employee. These are Salary, Wages, Allowances, Holiday Pay, etc.
Click on record from list or select ‘New Direct Benefit’ to add one. Records are managed in a pop-up form:
- Name ( ) – use descriptive name, it will appear on the payslip when this item is used for payment.
- Base for calculation (
) – how should the payroll be calculated :
- Set Value – rate for payroll items will be taken from the next text box
- Employee Rate – rate for payment is set for Employee : Payroll Details tab > Payment Base Rate, recalculated to hourly rate and subject to below adjustment
- Value / calculation ratio (
) – depending on Base for calculation of Rate that will appear on Payroll:
- See examples on the bottom of this page
- if Set Value – this amount will be placed in Rate on Pay Run if selected
- if Employee Rate – Employee hourly rate will be multiplied by this rate, giving you option to increase or decrease the Rate.
- If you don’t want to change the rate, use 1.
- E.g. for overtime or Saturday rate, you can use 1.5 or whatever the ratio applies.
- You can decrease the amount by using amounts between 0 and 1.
- Value rounding ( ) – how many decimal points should apply to the value (standard: 2, for dollars and cents)
- Debit Account ( ) – this account will apply to the Debit side of your Payroll Journal. This value is copied into the Pay Run and can be changed for each Pay Run.
- Credit Account ( ) – this account will apply to the Credit side of your Payroll Journal. This value is set in this form and once changed, will apply to all previous Pay Runs.
- Unit Name ( ) – this will appear next to the units. Example: ‘hrs’ if payment is based on hours, ‘km’ if per-kilometer rate is paid, ‘days’ if daily rate applies.
- Unit rounding ( ) – what decimal point rounding will apply to calculation of your units.
Below is the list of dependent items. On new items it appears after you click Save. Please select all items that must be calculated on / apply to this Direct benefit. Read more about dependent items.
Saving items will also prompt you to apply the Direct Benefit to proper Groups for reporting purposes.
Examples of calculation of Rate on Payroll:
- Employee rate: $25.25
- Value / calculation ratio: 1.55
- Unit rounding: 2
- Calculated Rate:
- EmployeeRate method: $39.14 (25.55 * 1.55, rounded to 2 decimal points)
- FactorAmount: $1.55