How does Payroll module work?

Overview

Backstage Payroll module enables you to prepare payroll for staffs, and also make use of these result in Payroll modules. The key records in this module are:

• Pay Type: to define the nature of different pay amount
• Job Order Template: to define the Pay Formula of each pay type. If your pay amount can be calculated, then you can define formula and let Backstage calculate it for you. This is also where to define taxable or other natures of a pay type.
• Pay Item: part of the Placement profile, to define a standard/recurring pay rate where applicable
• Pay Entry: for pay amount that is ad-hoc in nature, you can record them in advance and have Payroll retrieve them.
• Payroll Batch/Payroll: this represent a payroll that can be logically grouped to gather (e.g. they will be issued in same autopay instruction file).

Defining Pay Type

Backstage has to know what are the different pay types available in your company. Usually this can be known from your present payslip and look at the different pay item titles. 

Defining Pay Formula

To automate calculation, Backstage needs to know the formula behind each pay type. Usually this is either one of the following cases:

• Pay Type that can be calculated, with unit rate: for example, "Basic Salary" is one such pay type. It is usually calculated in terms of "Daily Rate x Number of days Worked". 
• Pay Type that can be calculated, without unit rate: for example, if you have a rule that on every December, to issue the Basic Salary as "Double Pay", this can be calculated in terms of a single "Pay Amount".
• Pay Type that cannot be calculated: some ad-hoc payments like Commission is out of reach by Backstage. But you can plug them directly in in Payroll as well.

Define the Pay Formula and move forward.

Updating Pay Rate in Placement Profile

Some calculation (e.g. Basic Salary) requires you to enter a pay rate that is specific to the staff, and likely they have an effective date too. Update these Pay Rates in Placement profile.

Generate Payroll Batch

Once the above configuration are done, you can generate Payroll Batches and add Staffs to the batch. Backstage will follow the formula you defined to complete the calculation. You can then further modify or validate the result.

After Payroll Batch

You are likely to make use of the Payroll Batch result for further actions, e.g. issuing your MPF Statement, issuing autopay instruction file, etc. Once these are done, you can "Post" the payroll batch to lock the result.