Revision: 35cdc0b6ec

Edited ByondHR Payroll Management

Restore Revision

[email protected] edited on Jul 6, 2023, 4:35:38 PM

@@ -1,20 +1,19 @@

To process Payroll in ByondHR,

-        1. Define Payroll Period

+ 1. Define Payroll Period

-        2. Create new Salary Component (optional)

+ 2. Create new Salary Component (optional)

-        3. Create Salary Structure with Salary Components (Earnings and Deductions)

+ 3. Create Salary Structure with Salary Components (Earnings and Deductions)

-        4. Assign Salary Structures to each Employee via Salary Structure Assignment

+ 4. Assign Salary Structures to each Employee via Salary Structure Assignment

-        5. Processing Payroll

+ 5. Processing Payroll

1\. Payroll Period

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Payroll Period, in ByondHR, is a period for which Employees get paid for their occupation with the Company. Payroll period helps you calculate tax for a specific period based on applicable Income Tax Slab.

2\. Salary Component

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@@ -23,13 +22,13 @@

### Earning

-<table class="table table-bordered"><tbody><tr><td data-row="row-eqro">Settings</td><td data-row="row-eqro">Description</td></tr><tr><td data-row="insert-row-below">Depends on Payment Days</td><td data-row="insert-row-below">If this component is calculated based on the employee eligible working days. If enabled, ByondHR will automatically calculate the pay in proportion of working days deducted by unpaid leave (if any).</td></tr><tr><td data-row="row-i2b8">Do not include in total</td><td data-row="row-i2b8">If this option is enabled, the component wont be added to the total of the Earnings or Deductions of the Salary Slip</td></tr><tr><td data-row="row-qk1q">Is Tax Applicable</td><td data-row="row-qk1q">If a component needs to be considered for Tax calculations specified as per the Payroll Period you may want to enable this option. It would be required that you have a Payroll Period and Income Tax Slab configured with valid Tax Slabs for payroll processing.</td></tr><tr><td data-row="row-sd67">Is EPF Applicable</td><td data-row="row-sd67">Selecting this checkbox if this component should include in the calculation of EPF</td></tr><tr><td data-row="row-qjyt">Is SOCSO Applicable</td><td data-row="row-qjyt">Selecting this checkbox if this component should include in the calculation of SOCSO</td></tr><tr><td data-row="row-yl6e">Is EIS Applicable</td><td data-row="row-yl6e">Selecting this checkbox if this component should include in the calculation of EIS</td></tr><tr><td data-row="insert-table">Is HRDF Applicable</td><td data-row="insert-table">Selecting this checkbox if this component should include in the calculation of HRDF</td></tr><tr><td data-row="insert-row-below">Deduct Full Tax on Selected Payroll Date</td><td data-row="insert-row-below">If checked and the component is used in Additional Salary, the tax amount applicable on the additional amount will be deducted on the specific payroll month. If not checked, the tax will be distributed over the remaining months of the payroll period. For example, if a bonus is given in a particular month using Additional Salary, then you can deduct full tax amount in the same month only.</td></tr><tr><td data-row="row-274z">Round to the Nearest Integer</td><td data-row="row-274z">Selecting this checkbox allows you to round the amount of this Salary Component to the nearest integer.</td></tr><tr><td data-row="row-jczo">Statistical Component</td><td data-row="row-jczo">Required basic coding capability to use this component. If selected, the value specified or calculated in this component will not contribute to the earnings or deductions. However, it's value can be referenced by other components that can be added or deducted. Also, you would not be able to set this component as a Flexible Benefit.</td></tr><tr><td data-row="row-y6yh">Remove if Zero Valued</td><td data-row="row-y6yh">Selecting this checkbox to remove the component in Salary Slip if the amount is zero.</td></tr><tr><td data-row="row-wj1u">Disabled</td><td data-row="row-wj1u">This checkbox can be selected to disable this Salary Component. A disabled Salary Component cannot be used in the Salary Structure.</td></tr><tr><td data-row="insert-row-below">Is Flexible Benefit</td><td data-row="insert-row-below">Flexible Benefits are earning components which Employees can choose to receive on a pro-rata basis or annually when they claim for. If turned on, you can specify the maximum benefit allowed for an employee in a year. You will need to create <a href="https://help.byondhr.com/employee-benefit-application" rel="noopener noreferrer" style="color: rgb(68, 68, 68); font-size: 14px; background-color: rgb(255, 255, 255);">Employee Benefit Application</a> with the ones they opt for.</td></tr><tr><td data-row="row-bnel">Pay Against Benefit Claim</td><td data-row="row-bnel">Select this checkbox if Employees can opt to receive flexible benefits when they claim via Employee Benefit Claim. The amount allocated for the component will be paid as the Employee submits an <a href="https://help.byondhr.com/employee-benefit-claim" rel="noopener noreferrer" style="color: rgb(68, 68, 68); font-size: 14px; background-color: rgb(255, 255, 255);">Employee Benefit Claim</a>. Unselect this checkbox if the amount will be dispersed as part of the Employee's salary on a pro-rata basis.</td></tr><tr><td data-row="insert-row-below">Max Benefit Amount (Yearly)</td><td data-row="insert-row-below">You can specify the maximum benefit allowed for an employee in a year.</td></tr><tr><td data-row="row-8cje">Only Tax Impact (Cannot Claim But Part of Taxable Income)</td><td data-row="row-8cje">Such components are those which the company has already paid to the Employee in cash or by some other means, for example a car purchased for the Employee's use. The Employee cannot claim but is liable to pay tax. The amount allocated for this component will be considered while calculating the taxable income of the Employee.</td></tr></tbody></table>

+<table class="table table-bordered"><tbody><tr><td data-row="row-eqro">Settings</td><td data-row="row-eqro">Description</td></tr><tr><td data-row="insert-row-below">Depends on Payment Days</td><td data-row="insert-row-below">If enabled, this component's amount will be calculated based on the employee's eligible working days, ByondHR will automatically calculate the pay in proportion of working days deducted by unpaid leave (if any) or missing working days in an incomplete month (if any).</td></tr><tr><td data-row="row-i2b8">Do not include in total</td><td data-row="row-i2b8">If enabled, the component's amount won't be added to or deducted from the net pay of the Salary Slip.</td></tr><tr><td data-row="row-qk1q">Is Tax Applicable</td><td data-row="row-qk1q">If a component's amount needs to be considered for Tax calculations you will need to enable this option. Payroll Period and Income Tax Slab is required for tax calculations during payroll processing.</td></tr><tr><td data-row="row-sd67">Is EPF Applicable</td><td data-row="row-sd67">If enabled, the component's amount will be included in the calculation of EPF.</td></tr><tr><td data-row="row-qjyt">Is SOCSO Applicable</td><td data-row="row-qjyt">If enabled, the component's amount will be included in the calculation of SOCSO.</td></tr><tr><td data-row="row-yl6e">Is EIS Applicable</td><td data-row="row-yl6e">If enabled, the component's amount will be included in the calculation of EIS.</td></tr><tr><td data-row="insert-table">Is HRDF Applicable</td><td data-row="insert-table">If enabled, the component's amount will be included in the calculation of HRDF.</td></tr><tr><td data-row="insert-row-below">Deduct Full Tax on Selected Payroll Date</td><td data-row="insert-row-below">If checked and the component is used in Additional Salary, the tax amount applicable on the additional amount will be deducted on the specific payroll month. If not checked, the tax will be distributed over the remaining months of the payroll period. This should be enabled for Bonus Salary Component as full tax shall be deducted for Bonus in the specific payroll month.</td></tr><tr><td data-row="row-274z">Round to the Nearest Integer</td><td data-row="row-274z">If enabled, the component's amount will be rounded to the nearest integer in Salary Slip.</td></tr><tr><td data-row="row-jczo">Statistical Component</td><td data-row="row-jczo">If selected, the value specified or calculated in this component will not contribute to the earnings or deductions. However, it's value can be used to calculate other components' amount using formula. Before enabling this option, please make sure you have understanding on how to calculate component's amount using formula.</td></tr><tr><td data-row="row-y6yh">Remove if Zero Valued</td><td data-row="row-y6yh">If enabled, this component would not be included in Salary Slip if its amount is zero.</td></tr><tr><td data-row="row-wj1u">Disabled</td><td data-row="row-wj1u">If selected, the Salary Component will be disabled. A disabled Salary Component cannot be selected during creation of Salary Structure.</td></tr><tr><td data-row="insert-row-below">Is Flexible Benefit</td><td data-row="insert-row-below">Flexible Benefits are earning components which Employees can choose to receive on a pro-rata basis or annually when they claim for. If turned on, you can specify the maximum benefit allowed for an employee in a year. You will need to create <a href="https://help.byondhr.com/employee-benefit-application" rel="noopener noreferrer" style="background-color: rgb(255, 255, 255); font-size: 14px; color: rgb(68, 68, 68);">Employee Benefit Application</a> with the ones they opt for.</td></tr><tr><td data-row="row-bnel">Pay Against Benefit Claim</td><td data-row="row-bnel">Select this checkbox if Employees can opt to receive flexible benefits when they claim via Employee Benefit Claim. The amount allocated for the component will be paid as the Employee submits an <a href="https://help.byondhr.com/employee-benefit-claim" rel="noopener noreferrer" style="background-color: rgb(255, 255, 255); font-size: 14px; color: rgb(68, 68, 68);">Employee Benefit Claim</a>. Unselect this checkbox if the amount will be dispersed as part of the Employee's salary on a pro-rata basis.</td></tr><tr><td data-row="insert-row-below">Max Benefit Amount (Yearly)</td><td data-row="insert-row-below">You can specify the maximum benefit allowed for an employee in a year.</td></tr><tr><td data-row="row-8cje">Only Tax Impact (Cannot Claim But Part of Taxable Income)</td><td data-row="row-8cje">Such components are those which the company has already paid to the Employee in cash or by some other means, for example a car purchased for the Employee's use. The Employee cannot claim but is liable to pay tax. The amount allocated for this component will be considered while calculating the taxable income of the Employee.</td></tr></tbody></table>

### Deduction

Similar settings will not be mentioned in this table.

-<table class="table table-bordered"><tbody><tr><td data-row="row-0zbw">Settings</td><td data-row="row-0zbw">Description</td></tr><tr><td data-row="row-bqnp">Variable Based On Taxable Salary</td><td data-row="row-bqnp">If you enable this, the component will be considered as the standard Tax deduction component. Tax will be calculated based on the Income Tax Slab linked to the employee.</td></tr><tr><td data-row="insert-table">Exempted from Income Tax</td><td data-row="insert-table">If checked, the full amount will be deducted from taxable income before calculating income tax without any declaration or proof submission.</td></tr></tbody></table>

+<table class="table table-bordered"><tbody><tr><td data-row="row-0zbw">Settings</td><td data-row="row-0zbw">Description</td></tr><tr><td data-row="row-bqnp">Variable Based On Taxable Salary</td><td data-row="row-bqnp">If checked, the component will be considered as the standard Tax deduction component. Tax will be calculated based on the Income Tax Slab linked to the employee.</td></tr><tr><td data-row="insert-table">Exempted from Income Tax</td><td data-row="insert-table">If checked, the full amount will be deducted from taxable income before calculating income tax without any tax exemption declaration.</td></tr></tbody></table>

3\. Salary Structure

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