Summary: This instruction explains how to create and manage company-specific salary types. It describes how to create new salary types and how to define their basic data, additional settings and cost objects in payroll.
CONTENT
- Calculatory salary types
- Company-specific basic data
- Basic data
- Additional settings
- Cost objects
- Frequently asked questions
View all salary types of the company’s salary models in company-specific salary types. Define here the basic data common to the company, such as the income type and postings, which affect all salary models where the salary type is used. Note that from company-specific salary types you cannot see in which salary model the salary type is used.
Open company-specific salary types by selecting Salaries > Payroll > Salary model management > Company-specific salary types.
Start creating a new salary type from company-specific salary types. For more detailed instructions, see: Create a new salary type.
Define the “Company-specific basic data of the salary type” here.
Manage the salary type formula per salary model. For example, you can define a different calculation formula for the salary type “Overtime” in hourly and monthly salary models. In payroll reporting, all employees’ overtime is reported as the same salary type.
Link a salary type to another salary type’s calculation formula or as part of another salary type using the calculation formula.
Add a new salary type by doing the following:
- Select Salaries > Payroll > Salary model management > Company-specific salary types.
- Select Add new salary type.
If needed, read more detailed instructions: Add new salary type.
Calculatory salary types
In the salary model settings, the salary type must always belong to some calculatory or fixed salary type.
Use the following mandatory standard salary types in all salary models to ensure the functionality of Netvisor’s payroll automation:
- Gross pay
- Salary in money
- Net wage or salary
- Withholding tax
- To be paid
- Salaries subject to insurance
More information about calculatory salary types.
Company-specific basic data
You can access the company-specific basic data of an individual salary type by clicking on the salary type name in Company-specific salary types.
Define the basic settings of the salary type here.
Basic data
Salary type number
Used in integrations, where the salary type number corresponds to the number of a similar salary type in another system.
Name
Give the salary type a name. If desired, you can also enter Swedish and English translations.
Language translations
Always enter the names of salary types in Finnish. Use English or Swedish language translations only in the translation fields. Do not write the original name of the salary type in English. The program cannot link salary types together if in one salary model the name is in English and in another in Finnish.
Group
Define the position of the salary type in the formula listing of salary models and on payroll reports. Group salary types by selecting one of the following:
- Salaries and allowances
- Fringe benefits
- Holidays and absences
- Tax-exempt allowances for expenses
- Deductions
- Calculatory
Payslip group
The payslip group determines where the salary type is considered on payroll reports (for example, Payslip and Salary approval). Select “Not considered” if there is no need to separate the salary type on the report.
Select one of the following as the payslip group:
- Salary in money
- Fringe benefits
- Wages for insurance purposes
- Deduction before withholding
- Income subject to withholding tax
- Withholding tax
- Income subject to tax at source
- Deduction from income subject to tax at source
- Amount of tax at source
- Tax-exempt allowances
- Other deductions
- To be paid
- Not considered
Direct salary types to the correct groups (for example, “Monthly salary” to the “Salaries and allowances” group and “Accommodation benefit” to the “Fringe benefits” group).
On the payslip report, view the sums of paid salaries according to the payslip group. All salary types whose group is Salary in money are shown in the Salary in money column.
Drill down into the information by clicking the salary sum. From here you can see which salary types have been directed to the payslip groups.
Source
Define where the value of the salary type is obtained from by selecting the Source. Select one of the following:
- Travel expense report - expense row
- Tax card
- Pay period-specific entry
- Employee’s salary basis
- Payroll settings
- User’s formula
- Table data
- Garnishment (only for a salary type related to garnishment)
- Holiday calculation formula
- Holiday calculation table data
Travel expense report - expense rows
Show the salary type in the travel expense report in the “Other expense” menu.
Tax card
Use this source only for the salary type Withholding tax.
Pay period-specific entry
Select the salary type in the time entry, where the quantity or euro price is entered.
Employee’s salary basis
Open the view by selecting Salaries > Personnel > Salary basis management. Give the salary type a value in the salary basis table.
Payroll settings
Open the view by selecting Salaries > Settings > Payroll settings. Enter a value for the salary type in the payroll settings.
User’s formula
Define the value of the salary type from the calculation formula (for example, holiday price x holidays).
Table data
Enter your own table as the value source for the salary type. For a table data type salary type, you can give comparison value ranges or values. Set the comparison value range after the salary type has first been saved once. Then handle the salary type data in the salary model-specific formulas.
Unit
You can optionally give the salary type a unit: hour, day, week and period.
Income type
Select a suitable income type for salary types reported to the income register according to the instructions of the income register. See instructions: Mapping salary types to income types.
Insurance handling
According to the selected income type, Netvisor automatically offers insurance handling according to the nature of the income type, which can be edited for certain income types.
Additional settings
Reporting
Show the salary type on all payroll reports by selecting Shown on reports. Bring hidden salary types onto reports by selecting Show also non-reportable salary types.
Leave the setting empty if you do not want the salary type to appear on reports or its “Year-to-date” information to appear on the payslip. The setting also adds the euro sign (€) to the payslip. Remove the selection to remove the euro sign and cumulative information.
Calculation
Leave the selection empty if the salary type should not always be included in the calculation. If necessary, select the salary type to be included in the calculation when forming the payslip in the “Check selected salary basis” phase (“Salary types with manual calculation”).
Payment
Report the information to the income register (the selection does not affect the payroll process).
Recurrence
Report the information to the income register (the selection does not affect the payroll process).
Accounting settings
Check the company-specific posting debit and credit accounts of the salary type from company-specific salary types. If a “Company-specific salary type overriding accounting entry rule” has been set for the salary model, check the posting in the salary model settings by selecting Salaries > Payroll > Salary model management > Formulas.
Cost objects
Affect the payroll allocation curve by selecting the source of the salary type’s cost object. Select one of the following as the source:
- Allocation curve
- Payslip row
- Employee’s default cost objects
- No entry
- Selected cost objects
Allocation curve
Distribute cost centers on the payslip using the allocation curve (maximum 100%). Let the program form the allocation curve automatically based on entered work hours, or retrieve the default cost object from the employee’s information. If necessary, set a default cost object also for an individual salary type.
Payslip row
Define cost objects for the salary type only in the payslip edit view by selecting Add new salary type row.
Employee’s default cost object
Define the employee’s default cost objects in the employee’s basic data. If “Employee’s default cost objects” has been given as the cost object source for the salary type, the cost object allocating on the accounting voucher is formed according to this setting, following the employee’s default cost objects in the basic data.
Selected cost objects
Define the cost centers of the salary type by setting default cost objects in the salary type settings.
Frequently asked questions
Where can I find company-specific salary types?
Open the view by selecting Salaries > Payroll > Salary model management > Company-specific salary types.
What are the mandatory standard salary types in payroll?
The mandatory salary types are Gross pay, Salary in money, Net wage or salary, Withholding tax, To be paid and Salaries subject to insurance.
How do I get the euro sign to appear on the payslip?
Select the setting “Shown on reports” on the Additional settings tab of the salary type.
How do I define the value source of a salary type?
Define the value source on the Basic data tab. You can select, for example, user’s formula, tax card, salary basis or travel expense report expense row as the source.
How do I direct the cost objects of a salary type?
Select allocation curve, payslip row, employee’s default cost objects, selected cost objects or no entry as the cost object source.
Keywords: salary type, company-specific salary types, payroll, salary model, income type, posting, cost object, allocation curve, reporting.
Did you find it helpful? Yes No
Send feedback