Creating Company Wide Salary Rates
Setting Up and Managing Salary Rates in FreePayroll
FreePayroll enables the management of diverse salary rates, such as overtime, bonuses, and other compensations that can be calculated on an hourly or unit basis. This guide outlines how to effectively add these rates to employee payslips.
FreePayroll automates payment calculations based on the hours worked or the number of units produced by an employee. This capability is essential for accurately handling various compensation scenarios such as overtime, shift differentials, and other unique pay conditions.
- Centralized Configuration: The setup of salary rates is performed at the company level, ensuring a consistent approach across all payroll processing.
- Reuse Across Payrolls: Once a salary rate is established, it can be reused in each payroll cycle. This streamlines the payroll process and maintains uniformity in how compensations are calculated and distributed.
Navigate to Company Section:
- Go to the 'Company' section in FreePayroll and access the 'Salaries' subsection.
Create a New Salary Rate:
- Click on the 'Create Salary' button to open a popup for creating a new rate.
Select Rate Type:
- Choose 'Overtime' as the salary type. This will be calculated using multipliers of the employee's hourly rate, as currently setup in the 'Salary' tab under their employee record.
Define the Rate Description:
- Type a description for this rate (this will appear on the payslip).
Pension Considerations (Optional):
- Decide if the overtime rate should be included in pension calculations by checking the "Pensionable" box.
Configure Overtime Multiplier:
- Input the multiplier to be applied to the employee's regular hourly rate.
Save the Salary Rate:
- After entering all details and configurations, click 'Save' to finalize the salary rate setup.
Select Rate Type:
- Choose 'Salary' as the type.
Define the Rate Description:
- Type a description for this rate (this will appear on the payslip).
Pension Considerations (Optional):
- Decide if the salary rate should be included in pension calculations by checking the "Pensionable" box.
Define the Rate Period:
- Specify the rate period: per unit or per hour.
Define the Rate Amount:
- Input the rate amount.
Save the Salary Rate:
- After entering all details and configurations, click 'Save' to finalize the salary rate setup.
- Rate Visibility: The description you set will be visible on the payslip, providing clear communication to the employee about the nature of each pay component.
- Flexibility: This setup allows for easy adjustment and addition of various compensatory mechanisms tailored to diverse work scenarios and employee agreements.
By following these steps, you can efficiently manage and implement customized salary rates in FreePayroll, ensuring accurate and compliant payroll processing.
FreePayroll enables the management of diverse salary rates, such as overtime, bonuses, and other compensations that can be calculated on an hourly or unit basis. This guide outlines how to effectively add these rates to employee payslips.
**Overview of Salary Rates**
FreePayroll automates payment calculations based on the hours worked or the number of units produced by an employee. This capability is essential for accurately handling various compensation scenarios such as overtime, shift differentials, and other unique pay conditions.
**Company-Level Setup**
- Centralized Configuration: The setup of salary rates is performed at the company level, ensuring a consistent approach across all payroll processing.
- Reuse Across Payrolls: Once a salary rate is established, it can be reused in each payroll cycle. This streamlines the payroll process and maintains uniformity in how compensations are calculated and distributed.
**Steps to Add a Salary Rate**
Navigate to Company Section:
- Go to the 'Company' section in FreePayroll and access the 'Salaries' subsection.
Create a New Salary Rate:
- Click on the 'Create Salary' button to open a popup for creating a new rate.
**Setting Up Overtime Rates**
Select Rate Type:
- Choose 'Overtime' as the salary type. This will be calculated using multipliers of the employee's hourly rate, as currently setup in the 'Salary' tab under their employee record.
Define the Rate Description:
- Type a description for this rate (this will appear on the payslip).
Pension Considerations (Optional):
- Decide if the overtime rate should be included in pension calculations by checking the "Pensionable" box.
Configure Overtime Multiplier:
- Input the multiplier to be applied to the employee's regular hourly rate.
Save the Salary Rate:
- After entering all details and configurations, click 'Save' to finalize the salary rate setup.
**Setting Up Regular Salary Rates**
Select Rate Type:
- Choose 'Salary' as the type.
Define the Rate Description:
- Type a description for this rate (this will appear on the payslip).
Pension Considerations (Optional):
- Decide if the salary rate should be included in pension calculations by checking the "Pensionable" box.
Define the Rate Period:
- Specify the rate period: per unit or per hour.
Define the Rate Amount:
- Input the rate amount.
Save the Salary Rate:
- After entering all details and configurations, click 'Save' to finalize the salary rate setup.
**Important Considerations**
- Rate Visibility: The description you set will be visible on the payslip, providing clear communication to the employee about the nature of each pay component.
- Flexibility: This setup allows for easy adjustment and addition of various compensatory mechanisms tailored to diverse work scenarios and employee agreements.
By following these steps, you can efficiently manage and implement customized salary rates in FreePayroll, ensuring accurate and compliant payroll processing.
Updated on: 03/05/2024
Thank you!