Distraint can also be handled with a fixed amount based on a payment prohibition instead of protection allowance calculation. In this case, a separate salary type is needed for collecting fixed distraint. This guide only covers setting up fixed distraint, so please read the instructions related to protection allowance calculation in the Distraint from pay guide.
CONTENT
- Fixed distraint salary type
- Attaching a new salary type to the salary model
- Salary model formatting
- Setting up distraint for the employee
- Creating a distraint settlement point
- Distraint on payslip (example)
Fixed distraint salary type
The Distraint salary type in Netvisor's standard salary models calculates the amount of distraint based on the protection allowance. To skip the calculation based on the protection allowance, a new salary type should be created for fixed distraint calculation. Pay > Payroll > Salary model management > Company-specific salary types > Create new salary type
- Create a new salary type with the information shown in the image below and save.
Attaching a new salary type to the salary model
The salary type can be used when it is added to the formula of a Calculated salary type. Distraint is added to the formula of the To be paid salary type: Pay > Payroll > Salary model management
- Click the Formulas icon from the salary model row
- Click the To be paid salary type row Edit button
- Add two new rows at the end of the Salary type formula as shown in the image below and save.
Please note that the Distraint, fixed salary type should be attached in the same way to the formula of the To be paid salary type in all salary models where fixed distraint will be handled.
Salary model formatting
In salary model formatting, the order of salary types on the payslip can be edited. The newly created salary type can be moved under the Net wage or salary salary type by dragging the salary type, making the payslip easier to read.
Pay > Payroll > Salary model management > Salary model name > Formatting tab
Setting up distraint for the employee
In the employee's basic information, the calculation details for distraint based on protection allowance calculation are defined. Since fixed amount distraint skips protection allowance calculation, distraint is not marked in the Employee's basic information.
Pay > Personnel > Employee listing > click on the employee's name
The amount for fixed distraint is defined in Pay basis: Pay > Personnel > Pay basis management. Save the amount to be collected for the employee in the Distraint, fixed column.
Creating a distraint settlement point
Each employee must have their own Distraint settlement point for remitting the deduction to the distraint authority. Pay > Payroll > Obligations > Settlements > Manage settlement points
- You can create a new settlement point from the New settlement point function.
- Provide the settlement point with the information shown in the image below and save.
- Attach the employee to the settlement point with the button "Attach employee to settlement point", from the section Employees to be attached to the settlement point
- Select the employee from the dropdown menu and save.
Distraint on payslip (example)
In the example, the employee has a fixed distraint of 550 euros. The distraint is deducted from their payslip in the same amount as long as the amount is saved in the Employee's pay basis. The deduction will automatically appear on each generated payslip, excluding additional calculations where fixed pay basis is selected manually.
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