Payroll Management is part of the human resources functions that handles the employees’ salaries with the basic salary, the overtime, the unpaid leave, the allowance such as transport allowance and housing allowance, the deductions such as the taxes and the social insurance deductions.
Managing the payroll itself will need to first to create and build the payroll settings. You can create many payrolls for the same school and each school will have its own payroll(s).
You give name and description for each payroll and specify some other settings such as number of working days, the working time as well as the overtime formula which will then define the factor to multiply based on the day of the overtime whether it was a normal day, holiday, weekend, or a day off.
Each payroll will be associated with debit account and credit account. Therefore, whenever the payroll is generated it will post to the financial accounting books based on double-entry system booking.
There are mainly two processes in the payroll management; Run the payroll and Process the payroll. These processes need to run monthly in order to generate the monthly payroll.
When you choose Run payroll, the system will automatically detect the current month and start collecting all the data needed to build the employees’ payroll for the current month. It will retrieve the data regarding the employees’ basic salaries based on the initial basic or the promoted one. It will then calculate all the overtime dues to employees based on the hours they worked off hours and based on the payroll settings that were preconfigured when you have created the payroll. The overtime is calculated based on the overtime payroll formula settings in the payroll record.
The process will also calculate the unpaid leave to deduct from the salary according the number of days the employees have taken as unpaid leaves.
All the allowances will also be calculated and their payments will be added to the employees’ net salaries while the deductions will also be calculated and deducted from the employees’ net salaries.
The net salary will be finally produced per employee and the monthly payroll will be ready to be processed in order to generate the final payroll which will be saved in the payroll record for future retrieval by choosing the payroll reports options and select the month you would like to report the payroll.