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Payroll Introduction

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12 views

Payroll Introduction

Uploaded by

swati280591
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Impact of Pay Frequency on

Salary Calculation: A Payroll


Perspective
Exploring how different pay frequencies influence payroll calculation .

S wati R ana
Presenter
Table of Content
What is Payroll?
Overview of Pay Frequencies.
Payroll Definition.
Payroll and Salary linkage.
Rate Calculations based on payroll type.
What Is Payroll?
Payroll is the process by which employees are paid for their work in an organization.
Overview of Pay Frequencies
Pay frequencies refer to the intervals at which employees receive their salary.
The system supports multiple pay frequencies.
 Weekly - Employees are paid once a week.
 Bi-weekly – Employees are paid every two week.
 Semi-monthly – Employees are paid twice a month.
 Monthly – Employees receive their pay once per month.
 Daily – Employee are paid based on the number of days worked.
Where to Set Pay Frequency in Fusion
HCM?
The pay frequency is set during the configuration of a payroll definition.
To set the pay frequency, you will configure the payroll definition and assign it to employees
It ensures that everyone’s pay is processed correctly and on time.
Offset Details
Planned submission date:
This is the suggested or scheduled date by which all payroll-related data should ideally be submitted.
Cutt Off Date:
This is the final, strict deadline for submitting any payroll-related information.
Payroll Run date:
This is the date when the payroll is actually processed.
Date Earned:
The Date Earned refers to the specific date or period during which an employee performs work and earns their wages
Date Paid:
It is a payment date
Pay slip Availability Date:
Date on which payees can view payslips.
Link between Employee and
Payroll
This relationship connects the employee’s assignment to the payroll processing setup
Assigning Salary to an Employee
Payroll and Salary linkage
Salaries are linked to pay frequencies (e.g., monthly, bi-weekly), dictating how often employees
receive their compensation.
Each salary basis is linked to specific payroll elements that define how an employee’s salary will
be calculated.
When a payroll run is initiated, the system pulls in these salary components to calculate gross
pay, and net pay.
Importance of Element Entries
Element entries are crucial in payroll because they store all the specific details about an employee's pay,
deductions, and other compensation-related information.
They ensure that the payroll process runs smoothly by providing the data needed for accurate salary
calculations
Calculation of Monthly Basic Salary
The salary basis holds the overall salary amount from the salary record. It passes the amount to
the element entry for payroll processing each pay period.
The basic monthly salary is typically calculated by dividing the annual salary by the number of
months in a year:
Monthly Basic Salary = Annual Salary/12
Bi-weekly Salary Calculation Based on
Rate
The bi-weekly salary calculation based on rate is a way to figure out how much an employee
should be paid every two weeks by using their hourly or annual pay rate.
Payroll Type: Bi-Weekly
Salary Basis: Defined as an annual amount

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