CONTENT
- Implement
- Entrepreneur, this is how you pay yourself a salary
- Error notifications
- Payroll process
- Obligations
- User rights
- Frequently asked questions
This guide explains how to implement the Entrepreneur Salary widget and how to use it to pay yourself a salary. Additionally, the guide covers the payroll process, obligations, and necessary user rights.
The Entrepreneur Salary widget is designed to make life easier for entrepreneurs when they want to pay themselves a salary. The entrepreneur does not need to manage the entire payroll process but can easily create a payslip from the widget with a few selections. However, it is important to remember that the Entrepreneur Salary function does not handle payroll obligations such as sending the Separate Notification to the Income Register. The Entrepreneur Salary widget can only be used to pay a salary to oneself. Therefore, the Payroll accountant cannot use the widget to calculate the salary for the entrepreneur. The Entrepreneur Salary widget is visible both in the Notification view and in the Pay section.
Implement
Before implementing, ensure that the following conditions are met:
- You are a Netvisor user.
- You have been established as an employee.
- Your company has the Pay service enabled.
- Your company uses the Limited Company chart of accounts.
- You have the necessary user rights: In sales and accounts payable rights, "Payer of purchase invoices and wages" and in payroll function-specific rights, edit rights to "Payroll".
Implement the Entrepreneur Salary as follows:
If you have the Payroll accountant role (P):
Click the widget's "Enable from here" button.
If you do not have the Payroll accountant role (P):
Another user with the necessary rights must activate the function on your behalf. Ask them to add the "Allowed to pay themselves a salary" option to your Employee basic data. You can open the view by selecting Pay > Personnel > Employee register > select your name > Salary data.
Check salary basis:
Ensure that your salary basis is not defined as a fixed salary basis "Monthly salary". This can cause an incorrect salary type on the payslip. You can check this by selecting Pay > Personnel > Salary basis management.
Entrepreneur, this is how you pay yourself a salary
The Entrepreneur Salary widget is visible both in Netvisor's notification view and in the Pay section. Pay yourself a salary as follows:
- Enter the desired amount in the "Wages paid" field.
- Choose whether the employer's contribution is added to the wages paid or deducted from it.
- "Added to wages paid" sets the entered amount as the To be paid amount on the payslip.
- "Deducted from wages paid" sets the entered amount as Gross pay, from which withholding tax is deducted.
- Press "Calculate preview" to see the calculation details
- Check from the preview that the amount to be paid is correct.
- Select the bank account from which the pay is made. If the company has only one account, it is selected by default.
- Note that the payment date is automatically generated, and you cannot edit it.
- Press "Confirm and pay". This creates the payslip and transfers the pay for payment.
After a successful payment, you will receive an acknowledgement message. The message will inform you of the paid amount and the day the money will be in your account at the latest.
Here you can access detailed instructions on bank payment runs.
Error notifications
If a setting prevents the calculation or payment from being made, you will receive an error notification at the top of the widget. If your user rights are insufficient to correct the settings, a user with the Payroll accountant role (P) can edit them.
Examples of error notifications:
If the payment processing at the bank fails, you will receive a notification via text message or email, provided your contact information is up to date. Check your contact information by selecting User menu (your name in the top right corner) > My basic data.
Payroll process
When you pay the entrepreneur salary through the widget, the system creates a payslip and takes it through the entire payroll process. You will find the payslip in the "Completed payslips" status. You can open the view by selecting Pay > Payroll > Payslips and pay periods.
The pay period is determined by the usage day. Netvisor creates a new pay period based on the salary model settings if necessary. The payslip uses the salary type "Entrepreneur salary self-service" to distinguish it from other calculations.
The first salary paid from the widget automatically creates a new salary type "Entrepreneur salary self-service" for the salary model you belong to. Its default posting is 5800 Shareholders/relatives salaries / 2961 Salary expenses (accrued liabilities).
The first calculation of the pay period takes into account fringe benefits defined in the menu Pay > Personnel > Salary basis management. The same salary basis is not brought to subsequent additional calculations.
The payslip is automatically delivered to you according to the selected delivery method, and an accounting voucher is automatically created from it.
Obligations
Note that you must still fulfill monthly obligations for the Entrepreneur Salary.
An earning payment report is automatically generated for the Entrepreneur Salary for the Income Register, so it will be submitted within the 5-day deadline from the payment date.
The employer's separate notification must be created separately. You can handle it in two ways:
- Manually: Create and send the notification monthly from the Employer's separate notifications section.
- Automatically: You can automate the sending of the separate notification, allowing the program to handle it for you.
Detailed instructions for creating, sending, and automating the separate notification can be found in the guide: Employer's separate notifications
User rights
All users with payment rights and whose company uses the limited company chart of accounts will see the Entrepreneur Salary advertisement.
-If you have the Payroll accountant (P) role, you can enable the function yourself. Creating a payslip through the widget does not require the Payroll accountant role.
-Using the widget requires that you are a Netvisor user, you have been established as an employee, and your company has the Pay service enabled. You also need the "payer of purchase invoices and wages" right in sales and accounts payable rights and the function-specific edit right in the Payroll section.
Frequently asked questions
What are the requirements for using the Entrepreneur Salary widget?
You must be a Netvisor user and established as an employee. Your company must have the Pay service and the limited company chart of accounts in use. Additionally, you need rights for wage payment and payroll editing.
Does the Entrepreneur Salary widget handle all payroll obligations?
The widget automatically handles the earning payment report to the Income Register. To make payroll as effortless as possible for you, we recommend enabling the automation of the separate notification. When the automation is enabled, Netvisor also handles the sending of the employer's separate notification on your behalf, and you do not need to remember to handle it manually monthly.
Is withholding tax calculated correctly if I pay the entrepreneur salary multiple times a month?
Yes, withholding tax on the additional calculation is calculated according to the tax card.
Can the Entrepreneur Salary widget be disabled?
Yes. The advertisement widget can be permanently closed from the cross in its upper right corner. If the function has already been enabled, you can disable it by removing the "Allowed to pay themselves a salary" option from the employee's basic data. You can open the view by selecting Pay > Personnel > Employee register > select your name > Salary data.
Why does the Entrepreneur Salary preview show a negative number?
This may be due to fringe benefits defined in the salary basis. If the "Wages paid" you entered is too small to cover, for example, the withholding tax on fringe benefits, the gross pay or the amount to be paid may go negative. If the "To be paid" row amount is correct, you can continue. If the "To be paid" amount is negative, change the "Wages paid" amount.
How can I use the Entrepreneur Salary widget if the company has wage approval in use?
If the company has voluntary wage approval in use, you must have either the Payroll accountant role (P) or Supervisor role (E) and approval rights for your hierarchy level and edit rights to "Wage approval".
How is the salary payment date determined in the Entrepreneur Salary widget?
The salary payment date is by default the next banking day. If you make the payment after 12 o'clock, the salary payment date is suggested to be two banking days ahead.
Does the entrepreneur salary take into account travel expense reports in payment?
Yes. If you have approved travel expense reports that have not been transferred for payment, they will automatically be raised for payment with the next entrepreneur salary.
How does distraint work with the Entrepreneur Salary widget?
Distraint works normally if the salary is paid once a month. If you withdraw salary in several installments during the month, the widget may not automatically take this into account, and the amount of distraint should be checked.
Keywords: entrepreneur salary, widget, pay, payroll, entrepreneur, payment, payslip, self-service, Income Register, obligations
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