FingerTec DiGiPAY User Manual

Page 71

q4.

I understand mid-month and end-month. But, why there is an additional deferred pay?

In normal practice, salary would be paid either twice a month or once a month. Thus, twice

a month payment will require the use of mid-month journal. However, some payroll transac-

tions, which require management approval such as overtime, commission and claims, may

be delayed due to unforeseen circumstances. As these transactions are needed in statutory

contribution calculations, deferred pay journal is introduced.

In DiGiPAY software, there is a necessary setting for deferred pay behavior stored in Payroll

Settings: “Deferred pay after end-month processing is”. The options available are Before

Closing and After Closing.

If Before Closing is chosen, the sequence of processing will be Mid-month, End-month and

finally Deferred Pay. If After Closing is chosen, the sequence of processing will be Deferred

pay, Mid-month and finally End-month. Failure to follow the sequence of processing will

cause the statutory contributions being calculated wrongly.

To utilize the deferred pay journal, just access the Deferred Pay journal, add or look for the

employee and make the necessary transactions. Save it and click on the Calculate button to

complete it with the journal calculation.

q5.

I need to make bonus payment. What are the options available?

Bonus transactions will be paid in one of the 3 methods offered: Before End-month, End-

month or After End-month. By choosing Before end-month or After end-month, bonus trans-

actions will be monitored separately from the monthly salary transactions. Thus, statutory

contributions will be calculated. By choosing End-month, bonus transactions will be added

into End-month journal and statutory contributions will include bonus amount.

For the bonus amount, you may opt to make the bonus transaction entry manually. However,

if the bonus is calculated based on x months of basic, you may make use of the Calculate

button in the Editing toolbar.

As bonus income tax calculation will require a monthly remuneration amount as the start-

ing point, 3 options are available: This-month, Last-month and Last December. By choosing

This-month, current month salary tax remuneration will be used. By choosing Last-month,

last month salary tax remuneration will be used. By choosing Last December, last December

salary tax remuneration will be used.

q6.

I am trying to add a new allowance where it should be included in EPF and income tax cal-

culation. But, I cannot find the necessary setting in Allowance codes. Where can I make the

definition?

Go to System Configuration → Earnings Subject to Statutories. For EPF and Tax pages, move

the new allowance from box in the right to the box in the left. If journal processing was done,

run the journal calculation process to refresh the statutory contributions.