Attendance Period vs Payroll Period

Organizations follow specific periods when processing and disbursing their employees' pay. Most companies stick with the same payroll and attendance period, while others have a different payroll period from their attendance period.

A payroll period is a cycle or interval determined by a company before an employee's pay is released. Pay items, such as Allowances, Adjustments, Bonuses, Commissions, Deductions, and Loans, are factored within a specific payroll period to know when these items will be released.

On the other hand, the attendance period is also a cycle or interval in which attendance-related premiums and deductions are added to and deducted from an employee's pay.

Below is an example of an Attendance Period same as the Payroll Period.

1st Attendance and Payroll Period: 26th to 10th

1st Payout Date: 15th of the month

2nd Attendance and Payroll Period: 11th to 25th

2nd Payout Date: End of the month

If a pay item's validity is set to the 11th of the month, the employee will receive it at the end of the month as it is covered within the period set by the company. At the same time, if an employee rendered extra hours (Overtime) on the 11th of the month, the additional premium will also be released at the end of the month given the period indicated above.

Below is an example of an Attendance Period different from the payroll period.

1st Attendance Period: 26th to 10th

1st Payroll Period: 1st to 15th

1st Payout Date: 15th of the month

2nd Attendance Period: 11th to 25th

2nd Payroll Period: 16th to the end of the month

2nd Payout Date: End of the month

If a pay item is added to an employee and its validity is dated on the 11th of the month, it will still be released on the 15th payout since it is still covered within the company's indicated payroll period.

However, if an employee rendered extra hours (Overtime) on the 11th of the month, the additional pay will reflect on the employee's 2nd payout (end of the month) instead of the 1st payout, given that all time-related premiums and deductions are calculated based on the attendance period.

In Salarium V3, you can already set your attendance period and payroll period in different cycles. Once you switch this option ON, and after you have set the intervals, you have to take note that the assumed present will not apply to your new hires/employees.

Example:

1st Attendance Period: 26th to 10th

1st Payroll Period: 1st to 15th

1st Payout Date: 15th of the month

2nd Attendance Period: 11th to 25th

2nd Payroll Period: 16th to the end of the month

2nd Payout Date: End of the month

Employee's Date of Hire: 6th of the month

The employee will not be paid from the 6th to the 15th on the 1st payout date. Instead, the employee will only be paid for his attendance from the 6th to the 10th as these are the only days covered by the attendance period. His worked days from the 11th to the 15th will be paid on the 2nd payout date.

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