How do I include 13th Month Pay on a Regular Payroll Run?

How do I include 13th Month Pay on a Regular Payroll Run?

Adding 13th Month Pay on a Regular Payroll Run allows you to include the amount to be released as 13th Month Pay together with the employee’s Net Pay on the particular selected cut-off date. You can add employees' 13th Month Pay as a bonus item via Manual Entry or Batch Upload.


Adding 13th Month Pay via Manual Entry

Selecting this method when adding bonuses allows you to assign 13th Month Pay by selecting recipients from a set of dropdown options. You can pick recipients by employee name, department, and payroll group.

Assign 13th Month Pay on a Regular Payroll Run using Manual Entry by following these steps:
1. From the Top Navigation, go to Payroll > Bonuses.
      


              
                   
2. Click on Add Bonuses.
      

3. Choose Manual Entry.
            
      
      
4. Under Bonus Type, select “13th month pay” from the dropdown options .
      

Bonus Type summary appears upon choosing a bonus type.


      
5. Fill out other Bonus Details. First, select Recipients. You can select recipients from the dropdown menu that shows the following options:
  1. Employee Name
  1. Department
  1. Payroll Group
5. Set the Amount Basis and Percentage of Monthly Salary
      
     Amount Basis
      


Current Salary
The latest salary of the employee within the coverage period.

The Basic Pay currently entered in the employee’s 201 file under the Employee page
Average Salary
The average salary of the employee within the coverage period.

Average Salary = (Previous Salary + Current Salary)/12

*This applies if you have done Basic Pay Adjustments
Gross Salary
The gross salary comprises the basic salary and other income of the employee within the coverage period (other incomes such as allowances, commission, overtime etc.)

Gross Salary =((Gross Income - Attendance Deductions) + OT Pay, Holiday Pay, RD Pay)/12
Basic Pay
The basic pay comprises the actual basic salary of the employee within the coverage period (basic salary less attendance based deductions such as tardiness, undertime, absences, LWOP, overbreak etc.)


Basic Pay =(Basic Pay - Attendance Deduction)/12



Percentage of Monthly Salary

Setting the Percentage of Monthly Salary allows you to set a portion of the salary to be released as employees' 13th Month Pay. For example, a company releases 13th month pay every June and November. Since the employee already received the first half last June, the other half will be released in November. Under this field, the admin should set the Percentage of Monthly Salary to 50%. If the employee's Current Salary (Basic Pay) is Php40,000.00, the amount to be released as 13th Month Pay in November should be Php20,000.00 if the Amount Basis and Percentage is set like this:


6. Select a Release Date. Special Pay Run switch should be ticked off.
  1.  Since you are including the 13th Month Pay to the regular payroll, make sure that the Release Date to be selected is within the Cut-off Date of the payroll. To further explain this step, refer to the scenario below:
Scenario A: Cut-off Date Different from Pay Date
                  
                        
Company ABC’s 13th Month Pay is released every November 30th Payroll. The attendance Cut-off Date for November 30 Payroll is from November 16 to 25. 

Considering the Attendance Cut-off Date, the 13th Month Pay Release Date should be picked from the November 16 to 25 date range. 

Scenario B: Cut-off Date Same with Pay Date
                       

Company XYZ’s 13th Month Pay is released every November 30th Payroll. The attendance Cut-off Date for November 30 Payroll is from November 15 to 30. 

November 30, can be selected as the Release Date.

  1. Set the Coverage Date and Status.
    1. This refers to the attendance date range to be considered as the basis for employees' 13th Month Pay Computation. This field appears when the selected bonus type is salary-based.
                        
  1.  When the coverage is up until December, this requires you to manually add attendance or assume or perfect attendance.
   
    7. Click on Submit to finalize the entry.

Your 13th Month Pay is ready on the date of the Regular Payroll Run disbursement.
Adding 13th Month Pay via Batch Upload

Selecting this method allows you to upload multiple entries all at once with the help of a Batch Upload template. You can also include bonuses that fall under another bonus type.

1. From the Top Navigation, go to Payroll > Bonuses.
          
                 

2. Click on  Add Bonuses.

      

2.  Select Batch Upload .
       3.  Under the Step 1 section, click on Download Template. The batch upload template for adding bonus items will be automatically downloaded to your device.
        

             

4. Open the file, then enter the 13th Month Pay data into the batch upload template. Make sure you follow the correct data format to avoid encountering errors upon validation. You may refer to the field map and accomplished batch upload file sample below:

Batch Upload Sample - 1 of 2


Batch Upload Sample - 2 of 2


5. Under Step 2 section, click on Choose File. This allows you to look for and select the batch upload template you have accomplished, select the file then click on Upload.

      
            
      

6. Wait for your file to finish validation.
    1. In case the uploaded file did not push through, there might be an issue with the uploaded data. Errors usually occur when an uploaded data does not match with the existing ones in the system.
    2. Scroll down to see the Error Message for your reference, then revisit the template to provide the missing/mismatched information.
    3. Save the file after doing the necessary corrections.
    4. Re-upload the corrected file for validation

7. Once the file has been successfully validated, multiple entries will automatically appear on the Bonus List.           

Your 13th Month Pay is ready on the date of the scheduled Regular Payroll Run release date you have selected.      

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