Payroll is considered as the process of compensating employees for their work. This process involves multiple steps to ensure that compensation pay is properly calculated, that is, worked time is tracked, the correct amounts for standard accrual types, benefits and vacations are calculated, the deduction amounts are withheld. Then, the pay slips are generated to inform each employee on their compensation pay. Actual payments can be made by cash, cheques, or direct deposits (via the WPS-Wages Protection System).

FirstBit ERP provides all the functionality that is required for payroll processing.

Recording the Work Time

To pay employees their compensation, you need to track the time they worked and they were absent during each month.

For each employee who requests a vacation, create and post a new document on the HR and Payroll > Time Tracking Documents > Vacations form. For details, refer to Vacations.

For employees who took sick leaves, create and post Sick Leaves using the HR and Payroll > Time Tracking Documents > Sick Leaves form. For details, refer to Sick Leaves.

If an employee takes an unauthorized leave, you can register it by creating a new document on the HR and Payroll > Time Tracking Documents > Other Absences form. For details, refer to Other Absences.
At the end of each period post all the available time tracking documents.

Time Sheets

Generally, actually worked time is tracked with the HR and Payroll > Time Tracking Documents > Time Sheets documents. For details, refer to Time Sheets.
When creating a new document, on the Main tab specify the entity, pay period, and department. Then on the Employees tab, you can enter the data: manually or automatically, total hours for period or hours by day.

There are two alternative methods of entering the data:

• Daily: For each employee, you can enter the hours worked each day in the period; you can use maximum 3 types of work time in the document.
• For the period: For each employee, you can enter the total number of days and hours for the entire period. You can use up to 6 types of work time in the document.

There are the following options for populating the document with the data:

• Fill by production calendar: You can use this option if all the employees work according to the main calendar and there are no individual schedules and work shifts.Work days and days off are specified according to the main production calendar.
• Fill by Work Schedules: Work hours or employees are specified according to each employee's schedule. For employees without schedules, work hours are specified according to work calendar.
• Fill by all documents: In addition to the data from work calendar and work schedules, the data about other work time types, such as vacations, other absences, and sick leaves is shown according to the posted documents of respective types.

Once the document is populated with the data, you can add overtime and unauthorized absences using the abbreviations of respective work time types.

Note. Any data in a Time Sheet document can be edited even if it was entered automatically.

Calculating Payroll

To access the Payroll Calculations document list, go to HR and Payroll > Payroll Documents > Payroll Calculations.

Payroll Calculations are used for calculation of the amounts that the company will pay to employees of specific department or all departments on payday for their work during the pay (registration) period. A payment (net pay) to each employee is based on the accrual and deduction types listed in the Employment Contract and Employment Contract Changes and work time information in Time Sheets with manual adjustments made for days of absence if any occurred in the pay period.

Also, you can apply deductions based on such documents as Invoice Received or Employee Business Expenses if the Enable Payroll Deductions option is selected on the Administration > Settings > HR and Payroll form.

If the number of employees is not large, you can create one document for all employees of the entity if you click the Settings button and then move the Department field from the Main tab to the Employees tab as a column.

Then select the pay period in the Registration Period field.

On the toolbr, click Fill to populate the document according to the selected parameters.

Then click the Calculate button to calculate the pay amounts.

On the Deductions tab, you can view the applied payroll deductions and other deductions based on Invoices Received or on Employee Business Expense Reports. Also, you van vide the deductions based on loans (if any) on the Loans tab.

On the Provisions tab, you can view the monthly amounts to be added for accumulation in benefit provisions.

Review the document, edit if needed and post it. For more information, refer to Payroll Calculations.

Payroll Sheets and Pay Sheets

To know the resulting compensation amounts to be paid out to each employee for specific pay period, you need to generate a Payroll Sheet based on the Payroll Calculation. Payroll Sheets are the documents that list the employees with their net pay for their work during specific pay (registration) period. Separate Payroll Sheets are created for sick leaves, vacations, or for final payout after employment termination.

To access the Payroll Sheets list, go to HR and Payroll > Payroll Documents > Payroll Sheets.
If needed, you can create the document manually. If the number of employees is not large, you can create one document for all employees of the entity-- for this, using the Settings button on the toolbar you can move the Department field from the Main tab as a column to the Employees tab. If the document was generated, the position of Department is inherited from the basis.
For more information, refer to Payroll Sheets.

For information purposes, you can generate for each department and each currency involved the Pay Sheet reports with employee earnings.
Also, you can generate payslips to inform each employee on their earning details. For details, refer to HR and Payroll: Reports.

Payments

If support of the Wages Protection System (WPS) is configured in your organization, the calculated amounts can be issued to the employees as direct deposits made via WPS. For details on configuring payments through the WPS, refer to Overview of WPS file processing.

If WPS support is not configured in your organization, the earned amounts can be paid in cash or by cheques or by bank payment.

Payroll Schedules

In some countries, according to the labor law employees are paid with specific frequencies for different types of workers: generally, employees with salary should be paid twice a month (semimonthly) and employees with wage per hour should be paid weekly. In other countries, payroll schedules are a matter of preference of employers, however, many organizations practice semimonthly payments for all employees.

If you need to pay semimonthly (or more frequently), use Payroll Sheets to record the advance payments as follows:

1. On the Main tab, select the registration period.
2. Make sure the correct entity appears in the Entity field.
3. Select Advance as the transaction type.
4. Choose whether the document is intended for a particular department or all departments. Ether select the required department, or click the Settings button and select the position of Department in document table.
5. On the Employees tab, click Fill Employees > By Department on the toolbar.
6. Then, in the For Payment column, enter the advance amounts for each employee.

At the month end, you will generate Payroll Calculation and then, on its base, a new Payroll Sheet with amounts adjusted for earlier paid advances. You can use the Salary Statement report to check the owed amounts at the month end.