Create Payroll Groups

Create Payroll Groups

Payroll Group

Payroll Groups allow you to sort your payroll based on specific categories. For employees to be assigned to a payroll group, they should have common payroll details such as the Day Factor, Number of Working Days, Pay Frequency, and Pay Run. See the table below to see other Payroll Group details to be considered when creating a Payroll Group.

 

Field

Description

Payroll Group Name

Name assigned to a specific payroll group for easier selection when generating a Regular Payroll

Minimum Take Home Pay for Gap Loan

The allowable amount that employees should take home as net pay. Employees who earned below the minimum net pay amount will be entitled to a Gap Loan.


What is Gap Loan?

A Gap Loan is the supplementary amount the employer lends to an employee who earned below the Minimum Take Home Pay set. The total amount to be lent to the employee can also exceed the supplementary amount. The item is deducted depending on the number of Loan Term set and Repayment Start date.


See Adding of Gap Loan for more information.

Number of working days per Year

This refers to the total number of working days the employee should complete within a year. Per DOLE, given the recent issuance, prescribed Day Factors at 8 hours per day are the following:

  • 261 ( 5-day work week)

  • 313 ( 6-day work week)

  • 365 (7-day work week)

  • 393.8 ( 7-day work week + holidays + rest days)


To see the actual breakdown and rates, you may refer to the recent release of  2022 Edition of Handbook on Statutory Benefits.

*If pay run falls on a non-working day

Dropdown Options:

  • Move payday after non-working days

Employees will receive their salary on the nearest date after non-working day/s

  • Mover payday before non-working days

Employees will receive their salary in advance before the non-working day/s

  • Schedule payday on non-working days 

Employees will receive their salary on the actual pay date regardless of the day type.

Number of working hours per day

Required number of working hours each employee should render in a day

Attendance Period Different from Payroll PeriodThe toggle must be switched ON if the attendance period is different from the payroll period

Pay Frequency

Dropdown Options:

  • Monthly

Employees get paid once a month

  • Semi-Monthly

Employees get paid twice a month

  • Weekly

Employees get paid every once a week

  • Fortnightly

Employees get paid every two weeks

Pay Period Cut-off Date

The end date of the payroll period

Period Pay Date

The date salary is released based on the Pay Frequency set

Period Posting Date

Reporting date of the payroll

Attendance Period Cut-off Date
The end date of the attendance period

Payment Schedule

(Government Contributions)

Options:

  • First Pay

    • Contributions get deducted on the first cut-off date

    • Appears on the employee’s  pay slip every first cut-off date

  • Last Pay

    • Contributions get deducted on the second cut-off date

    • Appears on the employee’s  pay slip every first cut-off date

  • Every Pay

    • Contributions get deducted equally every pay date

    • Appears on the employee’s  every pay date


These options only appear when the Pay Frequency is set to Semi-Monthly

Payment Method

The payment method refers to how the contribution will be divided based on the Payment Schedule selected.

  • Based on Actual

Based on the system-computed government contribution based on actual salary 

  • Equally Split

The government contribution amount will be divided on the number of paydays based on the Pay Frequency setting.


Add Payroll Group

1. From the Top Navigation, click Settings > Company Payroll Settings > Payroll Groups


2. Click Add Payroll Group.


3. Fill out all the required details.


If you do not provide Gap Loans, switch the toggle OFF.


If the attendance period is different from the payroll period, switch the toggle ON.


4. When the Attendance Period different from Pay Period button is switched OFF, it means that the cycle or intervals are just the same. You have to choose the last day of the period. For example, if the 1st period is from the 26th to the 10th, choose the 10th. In addition, the Pay Date and Posting Date must correspond correctly to the Cut-Off Date chosen.


When the Attendance Period different from Pay Period button is switched ON, the cycles are different when pay items will be considered and time-related premiums and deductions will be factored into the employee's pay. Make sure that the Attendance Period will correspond correctly to the Pay Period, Pay Date and Posting Date.


5. Choose the contribution deduction schedule if these will be deducted only on the First Pay, only on the Last Pay, or the if the Contribution will be deducted Every Pay (the amount will be split equally).

If you do not deduct tardiness, overbreak, and undertime from the employees' pay, but you still want to reflect these on the attendance records of the employees, retain the toggle switches OFF. If these time-related items will be deducted from the employees' pay, switch the toggles ON. You also have an option to switch every toggle on or only the applicable ones.


6. Once all fields are completed, click on Submit to save the Payroll Group.





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