In Salarium, payroll is done in groups.

A Payroll Group includes Day Factor, the number of working days in the calendar, Hours Per Day, Pay Frequency (monthly or semi-monthly) and Payroll Calendar.

Different rates, employee statuses and locations do not require separate payroll groups if they have the same Day Factor, Hours Per Day, Pay Frequency and Payroll Calendar.

Note: To generate payroll, employees must belong to a created Payroll Group.

To set up your payroll group go to Settings > Payroll > Payroll Group.  Click Add Payroll Group.

First, name your Payroll Group. Its recommended that you pick names that are consistent with the group (for example, Semi Monthly if the pay group is Semi Monthly or Monthly if it is monthly).

Select the Day Factor. This determines how many working days are in the calendar and will affect any monthly salaried employees. This number is used to come up with their daily and hourly wage. For example, if you have 5 working days in the the week you would have a day factor of 260.

Determine Hours Per Day.  This indicates how many hours there are in your work day, and is usually 8 hours.  Hours Per Day is used to calculate an employee's Hourly Rate, which is used in cases of tardiness and overtime. 

To determine an employee’s Hourly Rate, the calculation is as follows:

Hourly Rate = Annual Salary (Monthly Salary * 12)/Day Factor/Hours Per Day 

Lastly, select the Pay Frequency, or how often your company runs payroll. You can run your payroll monthly, semi-monthly, fortnightly (every two weeks) or weekly.

Note: You can only have one Pay Frequency per Payroll Group.

Next, pick the First Pay Period Start and End dates.  You will also need to determine the First and Second Pay Run dates for the payroll calendar (for Monthly pay frequencies, there is just one pay run). Pay run is the day that your company will pay its employees.

You will then be asked what to do when the Pay run day falls on a non-working day (holidays and weekends). You can either Bring it forward to the first working day, Postpone it to the first working day, or leave it as is.

Finally, enter your First and Second Pay Run Posting To dates.  The posting date will determine the month in which payroll, taxable income as well as contributions will be posted, for accounting purposes.

Note: Most companies run their attendance and payroll period several days before the actual payday. This allows companies an opportunity to prepare the payroll amount and make any last-minute changes. Typically, companies will have a three to five day span between attendance cut-off and the payroll day.

In the above example, the First payroll period Start is on the 26th of the previous month and the First Payroll period End is on the 10th for the First Pay Run on the 15th of the month.  The Second Pay Run which is on the 31st / Last day of the month has a Pay period of 11th to 25th.

The First Pay Run will post on 10/10/2015 and the Second Pay Run will post on 10/25/2015.

Once you put in the first pay period start and end dates, the payroll calendar will generate.

Note: You can create the calendar to start in the past if you want to generate past payrolls.

Some companies have a different attendance period than their payroll period. Typically, these are companies that give assumed days of work and reconcile on the next payroll.

If this is the case with your company, check the appropriate box and enter your attendance period start and end.

This Attendance Period will also be available in the Payroll Calendar

Click Generate and Save, and you can now add employees to this payroll group either individually or using the Mass Add feature of Salarium. Click here for more information on adding employees individually or click here for more information on adding multiple employees simultaneously.