Contributions
>> Profile > Payslip
Contributions to regulatory healthcare, social security, pension or other programs are automatically calculated in compliance with local regulations.
Contribution Wages
Contribution Wage is the basis by which contributions are calculated. The Contribution Wage can be configured under Contribution Types for each statutory contribution required for your country.
Indonesia
Philippines
Other Payments can also be included in the Contribution Wage, as specified in the Other Payment Type settings.
Contributions may also be deactivated on an individual profile level in Employment Info.
Contribution Calculation
Contributions are calculated according to the following methodology:
- Contribution Wage - wages on each payslip that should be considered for contribution calculations are calculated based on the settings above
- Monthly Contribution Wage - Contribution Wage for every payslip that exists within a calendar month ("Contribution Month") are summed.
Example: If your company is on Semi-Monthy Payroll.
1st Cut-off Contribution Wage 2nd Cut-off Contribution Wage Monthly Contribution Wage 10,000.00 20,000.00 30,000.00 - Monthly Contribution Amount - total contributions due to date are calculated based on the Monthly Contribution Wage.
- Contributions Paid - contributions that have been already deducted from previous payslips within the Contribution Month.
- Contributions Due - represents the contribution amount that is due on the current payslip.
This is calculated as Monthly Contribution Amount - Contribution Paid
The above methodology ensures that your contributions are always calculated exactly to the date of the current payroll and considers any other payroll batches that may exist during the Contribution Month. It particularly ensures accurate calculation in partial payroll month situations due to hire or termination within the month.
Note: we advise to only maintain one pending payroll batch open per calendar month, as if calculations are being run in more than one batch at a time, they will impact each other.
Contribution calculation formulas are based on statutory regulations required by the Country and cannot be customized by users.
Numeral Example
Contribution Wage |
10,000 |
Contribution Wage in current payslip |
Monthly Contribution Wage |
30,000 |
Sum of Contribution Wages for all payslips in the Contribution Month |
Monthly Contribution Amount |
3,000 |
A simple example of 10% contribution due on Monthly Contribution Wage |
Contributions Paid |
2,000 |
Contributions already paid in other payslips within the Contribution Month |
Contributions Due |
1,000 |
Contribution due in current payslip, calculated as: |
Comments
0 comments
Please sign in to leave a comment.