Choose your payroll rules

A few organisation-wide choices decide how every run works out pay. Set them before your first run; you can change them later and work a draft run out again.

Before you start

• You need Salaries and payroll and the Payroll app.

Set the basic rules

1. Open HR → HR settings → Payroll rules.
2. Check Overtime rate, normal days (1.25 = the hour plus a quarter) and Overtime rate, rest days and holidays (1.5).
3. Set Hours in a normal day (for the hourly rate) and Days in a month for a day's pay (30 is usual; 0 = the month's own days).
4. Tick Work on a rest day or a public holiday is paid at the second rate if it applies.
5. Under Deductions, tick only those you want: Take off unpaid (and half-paid) leave, Take off absent days, Take off late minutes at the hourly rate. Choose whether A day's pay is worked out on Basic + allowances or Basic only.
6. Choose what happens to An advance without its own plan: taken back in full in the next payroll, or left to you.
7. Select Save.

Set the controls

1. Open HR → Payroll → Payroll rule tables and scroll to Payroll: tips, commission scheme and controls.
2. Choose the Pro-rata for part of a month: by calendar days or by working days.
3. Leave Cap on deductions and Cap on a loan's instalment empty to use your country's limits, or type your own percentage of the gross.
4. Set Variance check: flag a net pay that moved by more than % (20 by default).
5. Tick the Two-person rule if the person who approves must not be the one who reviewed, and the one who pays must not be the one who approved.
6. Select Save.

Good to know

• Deductions are all off until you tick them.
• An absent day is a scheduled day with no clock-in, no approved time off and no public holiday.
• Payroll never takes deductions, advances and loan instalments below what the law leaves the person: loans give way first, then advances, and the rest stays owed. A warning on the run says so.
• The income tax and insurance tables, the tax method and the end-of-service figures on the same page depend on your country. See Egypt payroll and UAE payroll. Back to the published figures resets the tables.
• Every country figure is a published figure to confirm with your accountant, not legal advice.
• Overtime hours come from the approved timesheets. See Set work rules and approve timesheets.
• Next: Run payroll for a period.