Summary: This help explains Netvisor's calculatory salary types and their impact on payroll. The help goes through the mandatory standard salary types, their purposes and calculation formulas, and provides instructions for linking new salary types to the correct calculatory salary types.
CONTENT
In Netvisor, each salary model must include all calculatory salary types to enable payroll. Calculatory salary types affect, among other things, the calculation of withholding tax.
The mandatory standard salary types for all salary models in terms of Netvisor's functionality are included in the "Calculatory" group in the formulas of salary models.
When creating new salary types, the salary type must be linked to one of these calculatory salary types in the salary model-specific formulas, or a calculation formula must be defined for the new salary type.
The calculatory salary type to which the new salary type is linked depends on the nature of the salary type (for example, whether it is subject to withholding tax or a tax-exempt allowance for expenses).
Calculatory salary types and the salary types linked to them can be found in the salary model-specific formulas as follows:
Select Payroll > Payroll calculation > Salary model management
Click "Formulas" next to the desired salary type.
Calculatory salary types are always listed first in the salary model's salary type formulas. All other salary types of the salary model are linked to these.
Link a salary item that falls under Salary in money (subject to withholding tax) to the Salary in money calculation formula. Do not link it, for example, to the To be paid salary type calculation formula. If you do not link the salary item correctly, withholding tax will not be deducted from that salary item, nor will the salary item be considered in Gross pay. This distorts payroll reporting and causes incorrect payroll calculation.
It should also be noted that neither Salary in money nor other calculatory salary types should be used in payroll calculation. Instead, create your own salary types for payroll calculation or use existing salary types.
Link salary types to calculatory salary types according to the nature of the salary types. Note that the nature of a salary type can be, for example, fringe benefits, tax-exempt allowance for expenses, or deduction. Determine to which calculatory salary type formula the salary type should be linked based on whether withholding tax or other deductions are levied on the pay.
Gross pay
Link Salary in money and all fringe benefits to Gross pay. Calculate withholding tax from Gross pay.
Withholding tax
In Withholding tax, the amount of withholding tax is calculated from Gross pay according to the tax percentages on the tax card.
To be paid
Check that the final wages paid, from which all deductions have been made, remain as the amount to be paid. Add these deductions to the To be paid formula.
The To be paid formula also includes all tax-exempt allowances for expenses such as daily allowances and kilometre allowances.
Salary in money
All salaries subject to withholding tax that are paid to the employee are linked to Salary in money.
Salary in money is used in Gross pay and Net wage or salary so that withholding tax and other deductions can be calculated from the salary types linked to Salary in money. In Net wage or salary, all deductions are subtracted from Salary in money.
Net wage or salary
Net wage or salary subtracts withholding tax and other statutory deductions such as employment pension contribution and unemployment insurance contribution from Salary in money.
Net wage or salary is also used to calculate distraint.
Example
The operation of calculatory salary types is illustrated by the following payslip example.
Employee's salary information:
Monthly salary: 2500 €
Mobile phone benefit: 20 €
Withholding tax: 20 %
Employment pension contribution: 6.75 %
Unemployment insurance contribution: 1.5 %
Kilometre allowance: 100 km
Distraint: 250 €
The calculation formulas for the calculatory salary types in the payslip are formed as follows:
Salary in money: Monthly salary 2500 €
Gross pay: Salary in money + Mobile phone benefit (2500 € + 20 €)
Withholding tax: Gross pay x tax card withholding percentage (2520 € x 20 %)
Net wage or salary: Salary in money - Withholding tax - Employment pension contribution - Unemployment insurance contribution (2500 € - 504 € - 170.10 € - 37.8 €)
To be paid: Net wage or salary + Kilometre allowance - Distraint (1788.10 € + 42 € - 250 €)
When creating a new salary type, it is necessary to know the nature of the salary type, i.e., whether it is subject to withholding tax, a fringe benefit, or a tax-exempt allowance for expenses. Based on this, the salary type can be linked to the correct calculatory salary type. Calculatory salary types have an impact on other automatic settings and reporting in Netvisor.
Frequently asked questions
What are the mandatory standard salary types in Netvisor salary models?
Mandatory standard salary types are Gross pay, Withholding tax, To be paid, Salary in money, and Net wage or salary. These belong to the "Calculatory" group.
To which calculatory salary type should a new salary type be linked?
When creating a new salary type, link it in the salary model-specific formulas to one of the calculatory salary types according to the nature of the salary type, or define a new calculation formula for it.
Why should Salary in money not be used directly in payroll calculation?
Do not use Salary in money or other calculatory salary types in payroll calculation, as they are intended to control automatic deductions and reporting. Instead, create your own salary types for payroll calculation or use existing salary types.
What happens if a salary item subject to withholding tax is not linked to the Salary in money calculation formula?
If you do not link a salary item subject to withholding tax to the Salary in money calculation formula, withholding tax will not be deducted from that salary item, nor will it be considered in Gross pay. This distorts payroll reporting and causes incorrect payroll calculation.
Keywords: Netvisor, salary model, calculatory salary types, standard salary types, Gross pay, Withholding tax, To be paid, Salary in money, Net wage or salary, payroll, calculation formula
This article has been translated using an AI-based translation tool. The contents or wording of these instructions may differ from those in other instructions or in the software.