How to Add A New Pay Schedule
From the main page, click on the "Company" section, and then go to the "Pay Schedules" subsection.
Click the "+ Add Pay Schedule" button in the top right corner.
You will be prompted to input the following information:
- Pay Schedule Name: For example, "Monthly Managers" or "Weekly Employees."
- Pay Frequency: Choose from "Weekly," "Fortnightly," "Four Weekly," or "Monthly."
- Payday: Select a payday from the dropdown list.
- First Pay Date: Choose the first pay date that will be used in the software.
- Day Rate Method: Select the method FreePayroll will use to prorate employee salaries when needed (Yearly working days or Calendar Month).
Day Rate Method:
The "Day Rate" method calculates payment for work done on a daily basis. It's used for:
- New starters joining mid-period
- Leavers leaving mid-period
- Statutory schedules such as sickness, maternity, and paternity leave
Yearly Working Days:
This method uses the total working days in a year (52 weeks multiplied by the number of working days in a work pattern).
For example:
A team member has a maternity leave start date of June 18th, and the pay period runs from July 1st to July 31st, 2023. They have a £45,000 salary and a work pattern day rate method, and the company uses a calendar year calculation. Their work pattern includes Monday, Tuesday, Thursday, and Friday as working days. Their pay for July will be calculated as:
£45,000 / (4 working days per week * 52 weeks per year) * 9 days worked.
Calendar Month:
This method uses the number of working days in the pay period.
For example:
A team member has a maternity leave start date of June 18th, and the pay period runs from July 1st to July 31st, 2023. They have a £45,000 salary and a work pattern day rate method, and the company uses a pay period calculation. Their work pattern includes Monday, Tuesday, Thursday, and Friday as working days. Their pay for July will be calculated as:
£45,000 / 12 periods / 17 working days in the period * 9 days worked.
Click the "+ Add Pay Schedule" button in the top right corner.
You will be prompted to input the following information:
- Pay Schedule Name: For example, "Monthly Managers" or "Weekly Employees."
- Pay Frequency: Choose from "Weekly," "Fortnightly," "Four Weekly," or "Monthly."
- Payday: Select a payday from the dropdown list.
- First Pay Date: Choose the first pay date that will be used in the software.
- Day Rate Method: Select the method FreePayroll will use to prorate employee salaries when needed (Yearly working days or Calendar Month).
Day Rate Method:
The "Day Rate" method calculates payment for work done on a daily basis. It's used for:
- New starters joining mid-period
- Leavers leaving mid-period
- Statutory schedules such as sickness, maternity, and paternity leave
Yearly Working Days:
This method uses the total working days in a year (52 weeks multiplied by the number of working days in a work pattern).
For example:
A team member has a maternity leave start date of June 18th, and the pay period runs from July 1st to July 31st, 2023. They have a £45,000 salary and a work pattern day rate method, and the company uses a calendar year calculation. Their work pattern includes Monday, Tuesday, Thursday, and Friday as working days. Their pay for July will be calculated as:
£45,000 / (4 working days per week * 52 weeks per year) * 9 days worked.
Calendar Month:
This method uses the number of working days in the pay period.
For example:
A team member has a maternity leave start date of June 18th, and the pay period runs from July 1st to July 31st, 2023. They have a £45,000 salary and a work pattern day rate method, and the company uses a pay period calculation. Their work pattern includes Monday, Tuesday, Thursday, and Friday as working days. Their pay for July will be calculated as:
£45,000 / 12 periods / 17 working days in the period * 9 days worked.
Updated on: 17/07/2024
Thank you!