Payroll Management
Payroll management
This module consists of the following features: -
a) Payroll
Generate New Payroll
Payroll History
Payslips
Bank Credit Instructions
PAYE Remittance
Provident Pension Remittance
Hypo Tax Remittance
Payroll Analysis Report
Severance Pay
Payroll Uploads
Master Upload Sheet
b) Allowance and deductions
View History
Add Allowance
Request Allowance
Requests for Approval
Reports
Payroll Generation
Generate New Payroll
To navigate to this sub-module, go to: Module -> Payroll -> Payroll-> Generate New Payroll as shown in the figure below.
In order to select generate a draft payroll.
Select the payroll type.
Select the currency.
Branches (In case the employee wishes to generate for one branch or multiple)
Department (In case the employee wishes to generate for one department or multiple)
Select employee type.
Click on Generate button.
After clicking the Generate button, a draft payroll will be generated as shown below.
Below are the key processes/actions in payroll generation: -
Save as Draft
Once the payroll is saved in draft form, it enables the authorized approvers and users to verify the payroll before marking it as completed
Payroll Update
The update tab enables the approvers or authorized employees to update the payroll with the required information at any time needed before marking it as completed.
Mark as Completed
Once the Payroll is marked as completed, it can’t be edited. This is because it is treated as the final copy that has been approved by the principal signatory and therefore can’t be changed. It is also assumed that salaries or wages have been credited onto the employees’ bank accounts and statutory taxes and social security funds have been confirmed.
NOTE:
Once the payroll has been marked as completed, the employees will receive an email notification if set in the account preferences during employee registration as shown below.
Payslip Generation
To access this section, go to Modules -> Payroll ->Payroll -> Payslips. An employee can select the payroll period of interest from the left side drop-down. To access an employee Payslip, click on the preview tab on the table as shown in the figure below.
After generating the collective pay slip form as shown above, you will scroll to the extreme right of the desired employee and click on the preview tab, the pay slip will appear for preview and you can convert it to PDF.
Payroll Generation & Approval Workflow
This section is configured from the Company settings under Payroll and Remuneration where the approvers are set up for the Payroll section. These can either be none, or one or multi approvers as shown below;
Batch Actions
This feature enables the employee with rights to be able to update or edit all employees at once in this module.
Export
With this feature, the HR/Finance team is able to export a list of employees to excel or PDF for further actions such as printing or analysis. This tab is as shown below on the Payroll interface
Payroll Settings
This tab has a drop down of settings on the Payroll interface under this module. It has two sections i.e. display columns and general settings. The tab is as shown below.
Payroll History
To navigate to this section, go to Modules -> Payroll ->Payroll -> Payroll History. A user will be able to see current and historical payrolls.
LST Report
Local Service Tax (LST) is an annual tax collected by local governments from individuals who earn a living within their area. To navigate to this section, go to Modules -> Payroll ->Payroll -> LST Report.
Reports
This module compromises of all the reports in this module. These include the following: -
Bank credit Instruction Reports
This report contains information necessary to issue a bank instruction. This includes the employee name, bank details and net amount.
PAYE and NSSF Remittance Reports
Select a payable period and click on the Generate tab to view the report for that calendar month.
Payroll Analysis Report.
Generate customized reports using our integrated pivot basic and advanced analysis tool. To access this sub-module, go to; Modules -> Payroll -> Payroll -> Payroll Analysis Report.
Note: We advise that the system user gets to understand how pivot reports work before trying to use what is existing in HRMagic.
Allowances and deductions
Employees can use this feature to request for allowances and check if their allowances have been approved or not. To access this module: go to; Modules -> Payroll -> Allowances and Deductions.
View History
This helps the employee view the history of all Allowances and deductions as shown in the figure below. To navigate to this sub-module, go to Modules -> Payroll -> Allowances and Deductions-> View History.
Add Allowance
This module enables the user to add allowances per employee according to their categories as shown in the figure below. To navigate to this sub-module; go to; Modules -> Payroll -> Allowances and Deductions-> Add Allowance
Request for Allowance
An employee can request for an allowance as shown below.
Requests for Approval
This is for the admin to approve allowances previously requested by employees through the previous section. To navigate to this section, go to Modules >> Payroll >> Allowances and Deductions>> Requests for Approval.
Reports
Generates summary and detailed reports on all allowances.
Forex Exchange Rate
This section only applies to companies that run multi-currency payrolls i.e. run payrolls in other currencies other than the default one. The default currency is the one you will find in the Company Profile Settings. It normally defaults to the country you are operating in or the staff you are paying are from.
Forex Exchange Rates are required during payroll generation because other than paying in local currency (some employees prefer that), statutory taxes (PAYE, NSSF, WHT) must be paid in local currency.
Note: You cannot edit or delete Forex rates added after generating a payroll based on that rate. Also note that the most recent rate (row added) will be one considered over the older ones.
The figure below shows the “Add new Forex Rate” interface
Functional currency is the local currency i.e. UGX
Other currency: Select from the drop-down to the required currency
Exchange rate: The exchange rate at that specified time period
Transaction Date: Assumed date for when you are going to generate a payroll.
Note:
The exchange rate will be used to convert all taxes deducted into the local currency.
Importance of the Forex Exchange Rate
These are for the payrolls with employees who are not being paid using the functional/local currency set under the Company Settings.
Note that the Forex exchange rate doesn’t affect the local currency payroll.
Once the payroll has been completed, it will not affected by a change in rates. The change in rates comes in depending on the transaction date put in the Forex exchange settings.
It’s important to lock/prevent the rate from being edited so as to prevent the payroll figures from changing every time the user updates the draft payroll.
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