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Glossary of Payroll Terms
Updated onArticleAACH (Automated Clearing House): A network for processing electronic financial transactions, such as direct deposits and automatic bill payments. This system facilitates efficient and secure fund transfers between companies, banks and other financial institutions.Account Code: A unique identifier representing a specific account in the general ledger. Account codes help categorize and track financial transactions, ensuring accurate financial reporting and analysis.Active Year: The current calendar year for payroll processing. This year marks the initiation of uploading Year-to-Date (YTD) opening balances before commencing parallel runs. It is essential for maintaining accurate payroll records and ensuring compliance with annual reporting requirements.Advance Payment: A payment made to an employee before their scheduled payday. Advance payments can be used for various reasons, such as financial emergencies or relocation expenses, and are typically deducted from the employee's future earnings.Affects Employee or Employer NIS/Social Security: This designation indicates whether an earning, allowance, or other income impacts the National Insurance Scheme (NIS) or Social Security contributions for the employee, the employer, or both. If flagged for the employee, the amount will be included in the employee's NIS/Social Security calculations. If flagged for the employer, it will affect the employer's contributions to NIS/Social Security. Allowance: A payment made to an employee in addition to their basic salary. Allowances can include housing stipends, travel expenses, and meal allowances, providing additional financial support for specific needs.Allow Cash: This flag determines whether an allowance (benefit) is treated as a cash allowance or a non-cash benefit. If flagged as cash, the benefit is included in the employee's gross income and paid out as part of their salary, increasing taxable income. If flagged as non-cash, the benefit is provided directly (e.g., company cars, health insurance, housing, stock options) and is not included in gross income but may still be subject to taxation depending on jurisdiction. Allowable Deductions: Specific expenses that can be subtracted from an employee's gross income, reducing the amount of income subject to taxation. Allowable deductions typically include personal allowances, retirement/pension contributions, annuities, medical insurance (NIS) premiums, and charitable donations. These deductions are defined by tax laws and regulations and may vary by jurisdiction.Allow Regular: This flag determines whether an allowance is treated as a one-time payment or a recurring payment. If flagged, the allowance is automatically paid in each subsequent pay cycle after the initial entry. Regular allowances, such as transportation, housing, or meal allowances, are typically agreed upon in the employment contract and consistently provided each pay period.Annual Rate: The yearly salary rate for an employee. The annual rate is used to determine the total compensation an employee will receive over the course of a year, excluding bonuses, overtime, or other variable pay elements. This rate is often used to calculate monthly or bi-monthly salary payments by dividing the annual rate by the number of pay periods in a year. BBackpay: Compensation owed to an employee for work performed in a previous pay period that was not paid at the correct time. It covers the difference between what was paid and what should have been paid, ensuring employees receive their full earned wages.Bank Information Changes: Updates made to an employee's banking details including the primary bank and account number.Basic Pay: Fixed salary paid to salaried employees, regardless of hours worked. Benefit in Kind: Non-cash benefits provided to employees, such as company cars, health insurance, housing, or stock options. These benefits are considered part of an employee's compensation package and may be subject to taxation depending on the jurisdiction.Benefit Plan: A structured set of benefits offered to employees, which may include health insurance, retirement plans and other perks. Benefit plans are designed to enhance the overall compensation package and improve employee satisfaction and retention.Benefit Enrolment Rules: Guidelines for enrolling employees in benefit plans, including eligibility criteria, enrollment periods, and procedures. These rules ensure that employees are informed about their benefits and can enroll or make changes during specified times.Bi-Monthly: A payroll frequency where employees are paid twice a month, typically on set dates such as the 15th and the last day of the month. This results in 24 pay periods per year.Bi-Weekly Pay Group: Another term for a fortnightly pay group, where employees are paid every two weeks, totaling 26 pay periods per year.Branches: Different locations or divisions of a company. In payroll systems, branches are used to categorize and manage employees based on their work location, enabling more accurate tracking and reporting of payroll data.Brought Forward Deductions: Deductions carried over from a previous pay period or employer. These can include unpaid amounts for items like loans, advances, or benefit contributions that need to be reconciled in the current pay period.Brought Forward Tax Paid: Taxes paid in previous periods carried forward to the current period. This can occur in cases where there have been adjustments or corrections to tax payments, ensuring that the total tax liability is accurately reflected.Brought Forward Taxed Income: Income from previous periods that has been taxed and carried forward to the current period. This typically applies to scenarios where there are retroactive pay adjustments, bonuses, or corrections to previously reported income, ensuring the correct tax treatment across periods.Business Rules: Specific policies and procedures that govern payroll processing within an organization. These rules define how earnings, deductions, benefits, and other payroll elements are calculated and applied, ensuring compliance with legal requirements and company policies.CChargeable Income: The portion of an individual's income that is subject to taxation after deducting allowable expenses, exemptions, and other adjustments from their gross income. Chargeable income determines the amount of income tax an individual owes.Class Z Weekly: A classification for NIS contributions applicable to retired persons. Under Class Z, the employer makes the contribution while the employee does not contribute anything.COLA (Cost of Living Allowance): An additional payment made to employees to help offset the effects of inflation and maintain their purchasing power. This allowance adjusts salaries based on changes in the cost of living, ensuring that employees can maintain a consistent standard of living despite increases in prices for goods and services. COLA is typically associated with unionized employees and may be reviewed and adjusted periodically.Company Calendar: The calendar used to flag company-specific holidays, which impacts potential holiday payment rules within a multi-company database. This ensures that holiday payments and related payroll adjustments are correctly applied for employees of that specific company.Cost Center Distribution: The allocation of costs to different departments or centers within an organization. This distribution helps track expenses and manage budgets effectively by attributing payroll costs to specific areas of the business.Cut-off Date: The final date for processing payroll within a pay cycle. All time entries, adjustments, and other payroll-related data must be submitted by this date to be included in the current pay period. Missing the cutoff date means changes will be processed in the next cycle.Country Calendar: The national calendar used for payroll scheduling, incorporating public holidays, national observances, and other country-specific dates that may affect payroll processing. This ensures compliance with local laws, customs and payment rules.Currency: The type of money in which payroll transactions are conducted. HRplus handles various currencies if employees are paid in different countries or regions, ensuring accurate conversions and compliance with local regulations.Cycle Changes: Transactions in the payroll system for a pay cycle using predefined and user-defined codes. These include updates to timesheets, earnings, allowances, deductions, and other income, as well as changes like making an employee inactive or updating their pay method or bank account. Managed in the Cycle Changes table, payroll users can view, enter, edit, or delete these transactions.Cycle Change – Alternative Rate: An alternate rate applied to an employee during a payroll cycle change, used when the standard rate needs to be adjusted temporarily or permanently. This could apply to special circumstances such as bonuses, temporary pay increases, or corrections.Cycle Change – Batch Number: An identification number for a batch of cycle changes, used to track and manage multiple changes made by different payroll administrators during a single payroll cycle. This helps ensure that all changes are accurately recorded and processed together.Cycle Change – Cost Center: Adjustments to the cost center during a payroll cycle change may involve reallocating payroll expenses to different departments or projects. This ensures accurate financial reporting.Cycle Change – Entry ID and Description: The category of entry made during a payroll cycle change, such as Allowances, Deductions, Other Income, Timesheets, Vacation, or Pay Profile. An Entry ID signals to the payroll system what type of transaction you are entering. By first entering the Entry ID (e.g., "D" for Deductions), you can then select from a drop-down list of the corresponding Item IDs and Item Descriptions.Cycle Change – Item ID: Identification of an item involved in a payroll cycle change, used to track specific elements of the payroll that are being modified. This ensures accuracy and accountability in payroll processing.Cycle End: The end date of a payroll cycle, marking the conclusion of the period for which employees are paid. All payroll activities, such as time reporting and adjustments, must be completed by this date.Cycle Month Determined By: The method used to determine the month of a payroll cycle, which could be based on factors such as pay period start date, end date, or pay date. This method helps standardize payroll periods.Cycle Start: The start date of a payroll cycle, marking the beginning of the period for which employees will be paid. Time worked and other payroll-related activities are recorded from this date.Cycle Offset: Adjustments to the start or end of a payroll cycle, which may be necessary to align payroll processing with organizational needs or regulatory requirements. Offsets help manage discrepancies in pay periods. This configuration is only required for HRplus Payroll processing in Belize and Haiti.Current Dollars: The amount of money paid in the current pay period, reflecting the gross or net earnings of employees. This includes regular pay, overtime, bonuses, and any other compensation for the period.Current Units: The number of units (e.g., hours) worked in the current pay period, used to calculate earnings for non-salaried employees or to track productivity for performance-based pay.Cutoff Date: The final date by which all payroll-related data must be submitted for a specific pay period. This includes time entries, adjustments, deductions, and any other payroll-related information. Meeting the cutoff date is crucial to ensure timely and accurate payroll processing and to avoid delays in employee payments. DDatabase ID: A unique identifier for records within the database. This ensures that each employee record can be distinctly and accurately referenced regardless of which company the employee may be transferred to, facilitating data management and retrieval.Default Priority for a Deduction: The predefined order in which deductions are applied to an employee’s gross pay. This prioritization ensures that the most critical deductions (such as taxes,mandatory contributions, garnished wages and loans) are applied first, followed by other deductions in a systematic manner.Deduction: Amounts subtracted from an employee's gross pay for various purposes, such as taxes, insurance premiums, retirement contributions, and other authorized withholdings. Deductions reduce the employee’s gross pay to calculate their net pay.Deductions Not Taken: Deductions that were scheduled but not applied in a given pay period, possibly due to insufficient earnings or administrative errors. These deductions may be carried forward to subsequent pay periods or resolved through payroll adjustments.Delete HR Data: The process of permanently removing human resources data from the payroll system. This action may be necessary for data correction, compliance with data retention policies, or eliminating records of former employees. Proper authorization and procedures must be followed to ensure data integrity and security. EEarn Factor: A multiplier used to calculate earnings, often based on factors such as special pay rates. It adjusts the base pay to account for additional considerations, ensuring accurate compensation.Earn Print Order: The sequence in which earnings are printed on payslips and other payroll reports, determining the order of different types of earnings (e.g., regular pay, overtime, bonuses) as they appear on the employee’s payslip. This helps ensure clarity and consistency in payroll documentation.Earn Type: The classification of earnings, which categorizes the type of compensation an employee receives, such as regular earnings, overtime. This categorization helps in payroll processing and reporting.Earnings: The total compensation paid to employees for their work, including regular wages, overtime pay, bonuses, and any other forms of remuneration. Earnings are calculated based on factors like hours worked, pay rates, and additional pay factors.Encrypted Payslip: A payslip that is secured with encryption to protect sensitive payroll information. Encryption ensures that the payslip can only be accessed by authorized individuals, maintaining confidentiality and data security.End of Month Reports: Reports generated at the end of each month, summarizing payroll activities, earnings, deductions, and other relevant information. These reports help in tracking financial performance and compliance with accounting standards.End of Year Reports: Comprehensive reports produced at the end of the fiscal year, detailing annual payroll data, including total earnings, deductions, taxes, and employer contributions. These reports are essential for financial audits, tax filings, and regulatory compliance.Employee Business Rule Override: Custom rules applied to specific employees, allowing deviations from standard payroll policies. These overrides can accommodate unique circumstances, such as special pay rates, additional deductions, or benefits tailored to individual employees.Employee ID/Badge Number: A unique identifier assigned to each employee, used for tracking employment records, payroll processing, and access control within the organization. This ID ensures accurate identification and management of employee data.Employee Net Pay Distribution: The allocation of an employee’s net pay to various accounts or payment methods, such as direct deposits to multiple bank accounts or payments via checks. This distribution allows employees to manage their finances according to their preferences.Employee's Weekly Contribution: The amount an employee contributes to the NIS each week based on their earnings class, applicable to those in weekly pay groups.Employer's Weekly Contribution: The amount an employer contributes to the NIS each week on behalf of the employee, based on the employee's earnings class. This applies to employees in weekly pay groups.Employer Contribution: The portion of benefits, taxes, or other payments that the employer is responsible for, such as contributions to retirement/pension plans, health insurance premiums (NIS/Social Security), or payroll taxes. Employer contributions are in addition to the employee’s gross pay and are part of the total compensation package. FFixed Data Imports: The process of importing static data into the payroll system using predefined templates. This data includes information such as employee details, salary structures, and standard deductions that do not change frequently. Fixed data imports streamline the setup and maintenance of payroll records by ensuring consistent and accurate data entry.Fixed Rate: A constant rate used for calculating payments that remains unchanged over a specific period. This rate is applied to regular earnings, allowances, or other compensation elements that are not subject to variation. Fixed Tax: An override entered in the payroll cycle changes where a set amount of tax is applied to earnings instead of the automatically calculated tax based on income levels. Fixed taxes are used to ensure predictable tax obligations and facilitate straightforward payroll processing during specific circumstances, such as balancing payroll during parallel runs for one or more cycles. Once the need for fixed tax overrides is resolved, another entry should be made in the cycle changes to revert to automatic tax calculations, accurately adapt to any income and work period changes.Fortnightly Pay Group: A payroll group where employees are paid every two weeks, resulting in 26 pay periods per year. GGL Account Segment Code: The code used to identify general ledger accounts mapped to the different segments available on HRplus, including company, division, department, section, job, main account and location. This ensures that all financial transactions are accurately recorded and categorized within the company's accounting system. This code helps in tracking and reporting financial data, aiding in financial analysis and decision-making.GL Cost Code: The code used for cost allocation in the general ledger, which assigns specific costs to different departments, projects, or cost centers. This allows for precise tracking of expenses and helps in budget management and financial reporting.GL Employer CR: The credit entry for employer contributions in the general ledger. This entry records the employer's share of expenses, such as contributions to retirement plans, health insurance, or other employee benefits, reflecting the company's financial obligations.GL Employer DR: The debit entry for employer contributions in the general ledger. This entry represents the reduction in the company's assets due to the payment of employer contributions, balancing the financial records.GL Segment: A component of the payroll general ledger used to categorize and track specific types of financial transactions, such as payroll expenses, benefits, taxes, and departmental costs. GL segments help organize financial data into distinct categories, providing detailed insights and improving the accuracy and clarity of financial reporting and analysis.Going Live with the Payroll: The process of starting to use a new payroll system. This involves transitioning from a legacy system or manual processes to an automated payroll system, including data migration, system testing, and training. Going live marks the point when the new system is fully operational and handling live payroll transactions, meaning that employees are now being paid from the new system.Global Calendar: In HRPlus, this calendar flags global holidays that apply to all companies within the database, such as New Year's Day. Holidays marked on the global calendar are universally applied across all companies. Non-global holidays should be assigned to either the country or company calendar to ensure they are only applied where relevant.Global ID: A unique identifier used across multiple systems, facilitating the integration and synchronization of data between different platforms/applications. A global ID ensures that records pertaining to employees, transactions, or other entities are consistently and accurately identified, enhancing data integrity and consistency across the organization.Group Flag: This flag is used to categorize and manage specific groups of earnings, allowances, or other income types within the payroll system. It determines whether these items are grouped together for reporting, processing, or applying specific rules and treatments. Gross-Up: A method used by employers to increase an employee's net pay to account for taxes, ensuring that the employee receives a specific net amount. This is often used for bonuses, relocation expenses, or other payments where the employer wants to cover the tax burden on behalf of the employee. The gross-up calculation adds the necessary amount to the payment so that after taxes are deducted, the desired net amount is achieved. This process involves calculating the total payment required to cover both the net amount and the associated taxes. HHealth Surcharge: A mandatory deduction from an employee's earnings designated for funding health-related benefits and services in Trinidad and Tobago. This deduction ensures that employees contribute to national health programs, providing financial support for healthcare services.Health Surcharge – Weeks Employed: The total number of weeks an employee has been employed, used to calculate the health surcharge. This metric helps determine the cumulative amount that should be deducted for health benefits based on the duration of employment.Hide on Payslip: An option when generating a report, to exclude certain information from being displayed on an employee's payslip. This feature can be used to prevent sensitive or unnecessary details, such as specific deductions or allowances, from appearing on the printed or electronic payslip.Hours/Units in Cycle: The total number of standard hours or units assigned to employees in a paygroup and reflected on the employee's payroll profile. This figure is crucial for calculating salaried employees' hourly rate of pay and subsequent earnings, overtime, and other compensation based on the actual work performed within the cycle. It provides a basis for accurate payroll processing and reporting. I Inactive on the Payroll: Employees who are not currently active in the payroll system. Import HR Data: The process of importing human resources data, specifically Job Allowances into the payroll cycle changes. JJob Allowance: Extra compensation for specific roles or responsibilities beyond regular duties, such as handling hazardous materials, working in difficult conditions, or taking on additional managerial tasks. LLast Pay Date: The date on which the most recent payroll payment was issued to an employee. This date is important for record-keeping, financial reporting, and ensuring timely distribution of salaries and wages.Life to Date: The cumulative total of a specific deduction taken from an employee's pay over the entire duration of their employment. This balance is available via a report and can be generated for all types of deductions where this flag is set, such as loans, NIS, pension, insurance premiums, and other authorized withholdings. It provides a comprehensive view of the total amount deducted from the employee's earnings up to the current date. MMarginal Rate of Taxation: The tax rate that applies to an employee's highest level of income, affecting the last portion of their earnings. This rate is used to calculate the amount of tax owed on additional income and is important for understanding the tax impact of salary increases or bonuses.Minimum Wage: The lowest hourly wage that employers are legally required to pay their employees, set by government regulations to ensure fair compensation and protect workers from exploitation.Monthly Earnings: For employees in monthly pay groups (e.g., monthly and bi-monthly), this term indicates the earnings band that determines their NIS class and the associated contributions for both the employee and the employer.Monthly Pay Group: A payroll group where employees are paid once a month, resulting in 12 pay periods per year.Monthly Rate: The fixed salary amount an employee earns each month. This rate is used to determine the monthly salary (quoted rate) and is a standard measure for salaried employees. It does not typically vary based on the number of working days or hours in the month.Multiplier: A factor used to adjust earnings or deductions. For earnings, it might be applied to calculate bonuses, overtime, or commissions. For deductions, it can be used to scale the amount withheld for taxes, benefits, or other contributions based on predefined criteria.Multi-Currency Payroll: A payroll that processes payments in multiple currencies. The payroll calculations are conducted in the local currency to ensure compliance with tax remittance requirements, but employee earnings are disbursed in foreign currencies. This approach ensures that all tax obligations are met in the local currency while providing employees with their salaries in the preferred foreign currency. Mandatory Deductions: Deductions that are required by law or company policy, including taxes, national insurance/social security contributions, health insurance premiums, and pension/retirement fund contributions. These deductions are automatically subtracted from an employee's gross pay to ensure compliance with legal and contractual obligations. NNACHA Download Setup: The configuration process for downloading Automated Clearing House (ACH) files, which are used for processing electronic financial transactions such as direct deposits. This setup ensures that payroll data is accurately formatted and transmitted to banking networks for secure and timely payments.NIS Class: The classification system used for National Insurance Scheme (NIS) contributions, which categorizes employees based on factors such as their employment status, income level, pay group type (weekly or monthly) and eligibility for specific benefits. This classification helps determine the appropriate contribution rates and benefits for each employee.NIS Mondays: The total number of Mondays within a payroll cycle used to calculate National Insurance Scheme (NIS) contributions. Since NIS contributions are often based on the number of Mondays in a given period, this metric reflects an employee's eligibility and the required payments for social security benefits.NIS Schedule: The timetable for making National Insurance Scheme (NIS) contributions, detailing when and how contributions should be made. This schedule ensures compliance with statutory requirements and helps in planning and managing payroll cycles effectively.NIS/Social Security: Contributions made to the National Insurance Scheme or Social Security system, which fund various benefits such as retirement pensions, unemployment insurance, and healthcare. These contributions are typically deducted from an employee's earnings and may also include employer contributions.Net Pay: The amount of money an employee takes home after all deductions have been subtracted from their gross pay. This includes mandatory deductions (taxes, NIS/ social security), voluntary deductions (pension/retirement contributions, health insurance), and any other authorized withholdings.Net Pay Deductions: Deductions made directly from an employee's net pay, which may include garnishments, union dues, or other post-tax withholdings. These deductions reduce the amount of take-home pay an employee receives.Net Pay Split (Split Net Pay): The division of an employee's net pay into multiple payments, which can be directed to different bank accounts or payment methods. This allows employees to manage their finances more flexibly by allocating portions of their pay to savings, checking, or other accounts.Non-Cash Allowances: Benefits provided to employees in forms other than cash, such as company cars, housing, meals, or stock options. These allowances are part of the total compensation package and may be subject to taxation depending on the jurisdiction. These are also known as Benefits in Kind.Non-Salaried Employee: An employee who is paid based on the number of hours worked or units of work completed, rather than receiving a fixed salary. Non-salaried employees are typically hourly workers or piece-rate workers, weekly or fortnightly paid, and their earnings can vary based on their workload.Non-Smoothing Tax Calculation: A method of calculating taxes based on the actual earnings for each specific pay period, without averaging income over multiple periods. This approach ensures that taxes are computed accurately according to the earnings of that particular period, reflecting any fluctuations in income, such as bonuses or overtime, immediately in the tax calculation. Non-smoothing tax calculations provide precise tax deductions that correspond directly to the pay received in each pay cycle. Non-Taxable Allowance: Allowances provided to employees that are not subject to income tax. These may include certain travel reimbursements, education allowances, or other specific benefits defined by tax regulations. Non-taxable allowances reduce the employee's taxable income, potentially lowering their overall tax liability. OOOC Run (Out of Cycle Payroll Run): A payroll processing event that occurs outside the regular payroll schedule. OOC runs are used to handle special situations such as bonus payments, corrections, terminations, or other adjustments that cannot wait until the next regular payroll cycle.Opening Balance: The initial balance used for payroll calculations at the start of a new fiscal period or when an employee joins the company. This balance includes accrued earnings, deductions, and contributions carried forward from previous periods, providing a starting point for current payroll processing.Other Income: Earnings that come from sources other than the regular salary or wages. This can include bonuses, commissions, severance, stipends, reimbursements, or any additional payments made to employees that are separate from their base pay. Other income is usually included in gross income for tax and reporting purposes.Overtime: Compensation paid to employees for hours worked beyond their regular work schedule. Overtime is often calculated at a higher rate than regular pay, such as time-and-a-half or double time, to compensate for the additional work. Overtime pay is governed by labor laws and company policies, ensuring fair compensation for extra hours worked. PParallel Runs: The process of simultaneously operating a new payroll system alongside the existing system to compare and verify results before fully transitioning. This practice ensures that the new system is accurate and reliable by matching its output against the established system. Parallel runs help identify discrepancies, resolve issues, and ensure a smooth transition with minimal disruption to payroll processing. Pay Date: The date on which employees receive their payroll payments. This date is crucial for financial planning and compliance, ensuring employees are paid on time as agreed in their employment contracts.Pay Cycle Offset: Adjustments made to the start or end of a payroll cycle to align the payroll year with the fiscal year based on regulatory requirements. This adjustment utility is only required for payroll processing in Bermuda ad Haiti.Pay Cycles: The recurring periods for processing payroll, such as weekly, fortnightly, Bi-monthly, or monthly. These cycles determine the frequency and regularity with which employees are paid.Pay Groups: Categories of employees grouped together for payroll purposes based on similar characteristics such as department, job function, or pay schedule. Pay groups simplify payroll processing by allowing batch handling of similar employees.Pay Method: The method by which employees receive their payments, such as direct deposit, check, or cash. Different pay methods can cater to employees’ preferences and banking arrangements.Pay Period: The specific period for which employees are compensated, such as a week, two weeks, or a month. Pay periods define the duration between each payroll run and the period for which wages are calculated.Pay Profile: The payroll settings and preferences configured for an individual employee, including pay rate, pay frequency, deductions, and allowances. The pay profile ensures that each employee’s payroll is processed according to their specific arrangements.Pay Rate: The amount paid per unit of work, such as an hourly wage or annual salary. The pay rate determines the basis for calculating an employee’s earnings for the pay period.Pay Slip: A document provided to employees detailing their earnings and deductions for a specific pay period. It includes information such as gross pay, net pay, taxes withheld, and other deductions.Pay Slip Emailing: The process of sending pay slips to employees via email. This method is efficient and environmentally friendly, providing employees with electronic copies of their pay slips.Pay Slip Message: A message included on the pay slip, often used to communicate important information or updates to employees. This message can be customized for each pay period.Pay Status: The current status of an employee’s pay, indicating whether they are active, inactive, on leave, or terminated. Pay status affects how and if an employee is included in payroll processing.PAYE/Income Tax: Pay As You Earn, a system for withholding income tax directly from an employee’s paycheck. This system ensures that taxes are collected throughout the year, reducing the burden of a large tax payment at year-end.Payroll Adjustment: Changes made to payroll after initial processing, such as corrections for errors, additional earnings, or deductions. On HRplus, this means that the cycle to which changes are to be applied has been archived with the next normal cycle already being run. Adjustments are made via the utility and ensure that payroll remains accurate and compliant with all regulations.Payroll Documents: All documents related to payroll processing, including pay slips, tax forms, payroll registers, and compliance reports. These documents are essential for record-keeping, auditing, and compliance with legal requirements and can be uploaded to the pay cycle for future reference.Payroll Parallels: The practice of running two payroll systems in parallel to compare outputs and ensure accuracy before fully transitioning to a new system. This helps identify and correct discrepancies, ensuring a smooth transition.Prorate: The process of calculating a proportional amount of an employee’s salary, benefits, or deductions based on the actual time worked during a specific period. Proration ensures that employees are fairly compensated for partial periods of work, such as when they start or end employment mid-pay period, take unpaid leave, or experience a change in salary.Priority Deductions: Deductions that are given precedence over others when calculating an employee’s net pay, such as court-ordered garnishments or child support payments. These deductions are applied first to ensure compliance with legal obligations.Pre-Out-of-Cycle Payroll: An out-of-cycle payroll run processed before the normal payroll cycle, linked to the next open cycle which has not yet been run. It is used for payments that need to be made earlier than the scheduled payday, such as advance salaries for vacation or emergencies. The pre-out-of-cycle payroll carries the same cycle number as the upcoming normal payroll cycle.Post-Out-of-Cycle Payroll: An out-of-cycle payroll run processed after the normal payroll cycle to capture payments that were not submitted in time for the normal cycle, such as overtime or other adjustments. This helps ensure that all due payments are made and payroll records remain accurate. RRate Change: Adjustments made to an employee's pay rate. This can occur due to promotions, market adjustments, changes in job responsibilities, or annual raises. Rate changes ensure that an employee's compensation reflects their current role and value to the company.Regular Allowance: Standard allowances provided to employees on a regular basis, such as transportation, housing, or meal allowances. These allowances are typically agreed upon in the employment contract and are consistent each pay period.Regular Deduction: Standard deductions applied to an employee's pay each pay period, such as taxes, retirement contributions, health insurance premiums, and other mandatory or voluntary deductions. Regular deductions are predefined and consistently applied.Report – Bank Transfer: A report detailing bank transfer transactions, including the amounts transferred, the accounts involved, and the date of the transactions. This report helps in reconciling payroll payments with bank records, ensuring all transfers are accurately processed.Report – Flat Register: A comprehensive summary report of payroll transactions for a given period. It includes detailed information on earnings, deductions, net pay, and other payroll elements for all employees. The flat register report is used for internal auditing, financial reporting, and ensuring compliance with payroll policies and regulations.Reverse Payroll: The process of reversing a payroll transaction to correct errors or make adjustments. This involves canceling the original payroll transaction and reprocessing it with the correct information. Reverse payroll is used to rectify mistakes such as overpayments, underpayments, or incorrect deductions.Run Date: The date on which payroll processing occurs. This is the date when all payroll calculations are finalized, and the necessary funds are prepared for disbursement to employees. The run date is crucial for ensuring timely payment and compliance with payroll schedules.Run Payroll: The process of calculating and distributing employee wages and salaries for a specific pay period. This includes computing gross pay, applying deductions, calculating net pay, generating pay slips, and disbursing funds to employees. Running payroll ensures that employees are paid accurately and on time. SSalary: The fixed regular payment made to an employee, typically expressed as an annual amount and paid in regular intervals (e.g., monthly, bi-monthly, etc.). Salaries are agreed upon in employment contracts and do not vary based on hours worked.Salary Change: Adjustments made to an employee's salary, which can result from promotions, performance reviews, market rate adjustments, or changes in job responsibilities. Salary changes ensure compensation remains fair and competitive.Salary Change Flag: An indicator within the payroll system that a salary change has occurred. This flag helps track and manage salary adjustments, ensuring they are implemented correctly and accurately reflected in payroll processing.Salary Grade and Point: The level and specific point within a salary scale that determines an employee's pay. Salary grades categorize positions based on their responsibilities, while points represent the exact position within the grade, reflecting experience or tenure.Salary Range: The range of possible salaries for a particular position, defined by a minimum and maximum amount. Salary ranges help ensure pay equity and provide a framework for setting and adjusting salaries based on market conditions and employee performance. Salaries entered outside of the range for a linked job are highlighted with a red circle.Salaried Employee: An employee who is paid a fixed salary regardless of the number of hours worked. Salaried employees typically hold exempt positions and are not eligible for overtime pay.Salary Transfer Report: A report detailing the transactions involved in transferring salaries to employees' bank accounts. This report includes information such as the amounts transferred, recipient bank accounts, and dates of transactions, and is used to verify and reconcile payroll disbursements.Smart Entries: Automated entries in the payroll system designed to streamline payroll processing. These entries reduce manual data entry by automatically calculating and inputting regular and irregular transactions, such as timesheets, salaries, allowances, deductions, other income, personal allowances, brought forward earnings, net pay bank changes hourly rate changes and general pay profile changes.Smoothing Tax Formula: A method of calculating taxes by averaging income over a specified period, such as a year, to determine a consistent tax rate. This approach helps stabilize tax deductions across pay periods, preventing significant fluctuations due to varying income levels.Semi-Smoothing Tax Formula: A tax calculation method that partially averages income over a period, balancing between immediate income-based tax calculations and fully smoothed tax approaches. This formula aims to reduce significant variations in tax deductions while still reflecting changes in income to some extent.Statutory Deductions: Mandatory deductions from an employee's gross pay as required by law. These typically include income tax, social security contributions, national insurance, and other government-imposed deductions. Statutory deductions ensure compliance with legal obligations and fund public services and benefits.Statutory Exceptions: Specific exemptions or deviations from standard statutory requirements, often due to unique circumstances or regulatory provisions. These exceptions ensure compliance with legal obligations while accommodating special cases.Statutory Report Flags: Indicators used within the payroll system to mark data that must be included in statutory reports. These flags ensure that required information is accurately captured and reported in compliance with legal and regulatory requirements.Standard Work Hours Per Day: The typical number of work hours in a day, which is used to calculate daily wages, overtime, time-off and compliance with labor laws. This standard helps define full-time employment and ensures consistency in payroll calculations.Straight Pay: The hourly wage paid to non-salaried employees based on the actual hours worked. Straight pay ensures that employees are compensated fairly for all time worked, in accordance with hourly rates and labor regulations.System Codes: Predefined codes within the System CConfigurations that standardize and automate processes, ensuring consistency and accuracy in payroll calculations and reporting. TTax Allowance Breakdown: The detailed division of tax allowances into specific categories such as personal, mortgage and pension allowances, showing how different allowances reduce taxable income. This breakdown helps employees and employers understand the various components that contribute to lowering the overall tax liability. Tax Credits: Tax credits directly reduce the amount of tax owed, which can affect net pay. Understanding the impact of tax credits helps in accurately computing employee take-home pay and ensuring compliance with tax regulations.Tax Method: The approach used to calculate taxes, which can vary based on factors such as income level, filing status, and jurisdiction. Common tax methods include progressive, flat, and regressive tax systems, each with different rules for how taxes are applied to earnings.Tax Table: A chart used to determine the amount of tax to be withheld from an employee’s pay. Tax tables list different income ranges and the corresponding tax rates or amounts that should be applied, helping ensure accurate tax withholding.Taxable Allowance: Allowances provided to employees that are subject to taxation. Examples include car allowances, housing stipends, and other benefits that must be included in gross income for tax purposes. These allowances increase the employee's taxable income and, consequently, their tax liability.TD4 Report: A tax-related report for employees, typically detailing income earned, taxes withheld, and other relevant financial information for a specific period. This report is often used for filing annual tax returns and ensuring compliance with tax regulations.Timesheet: A record of hours worked by an employee during a specific period. Timesheets are used to calculate pay for hourly employees, track overtime, and ensure accurate compensation. They can be maintained manually or through electronic time-tracking systems.Transaction-Payroll Linkages: Connections between financial transactions and payroll activities. These linkages ensure that all payroll-related transactions, such as salary payments, deductions, and contributions, are accurately recorded and reflected in the payroll system.Transaction Reasons: The specific purposes or explanations for financial transactions within the payroll system. Each transaction reason provides context and justification for entries, such as bonus payments, salary adjustments, deductions for benefits, or corrections to previous errors. Understanding transaction reasons is essential for accurate record-keeping and auditing. UUnion: An organization formed to represent the collective interests of employees in negotiations with employers. Unions advocate for better working conditions, wages, benefits, and other employment terms. They provide a unified voice for workers and can engage in collective bargaining, dispute resolution, and other activities to protect and advance employee rights.Union – Bargaining Unit: A specific group of employees within a company that is represented by a union. The bargaining unit is defined by job classifications, departments, or other criteria and is the entity that engages in collective bargaining with the employer. The bargaining unit negotiates contracts, known as collective bargaining agreements (CBAs), which outline the terms and conditions of employment for its members. VVacation Advance: A flag on an earning code that indicates the payment is an advance on the employee's salary specifically for vacation purposes. When this flag is set, the amount is processed as an advance, impacting payroll calculations and ensuring proper accounting for the advance against future earnings. This helps manage and track salary advances given to employees for their vacation.Valid Organization Hierarchies: Structured levels of an organization that define reporting relationships and the flow of authority.Variance: Differences between expected and actual payroll data, such as discrepancies in earnings, deductions, or net pay. Variance analysis helps identify errors, inconsistencies, and areas for improvement in payroll processing.Variance Report: A report that highlights differences in payroll data between two periods or sets of data; current and archived data. This report is used to identify discrepancies, such as differences in earnings, deductions, or net pay, helping to ensure accuracy and identify potential issues in payroll processing.WWeekly Earnings: For employees in weekly pay groups (e.g., weekly, fortnightly, daily, or hourly paid), this term indicates the earnings band that determines their NIS class and the corresponding employee and employer weekly contributions.Weekly Pay Group: A payroll group where employees are paid every week, resulting in 52 pay periods per year. YYear to Date (YTD): The cumulative total of amounts from the beginning of the year to the current date. This includes earnings, deductions, contributions, and other payroll-related figures, providing a comprehensive view of an employee's financial activity for the year. If onboarding to HRplus during the year, YTD balances are uploaded in the cycle before the first parallel is run.Year to Date Uploads: The process of uploading YTD data into the payroll system. This data includes all cumulative totals for earnings, deductions, and other payroll elements from the beginning of the year up to the current date, ensuring that payroll records are accurate and up to date.Year-End Adjustments: Adjustments made at the end of the fiscal year to correct or finalize payroll records. These can include correcting errors, adjusting for bonuses or commissions, and reconciling any discrepancies to ensure accurate year-end reporting.Year End Close: The process of finalizing and closing out the payroll year. This involves reconciling all payroll accounts, preparing year-end reports, issuing tax forms to employees, and ensuring compliance with regulatory requirements.YTD Units: The total number of units (e.g., hours) worked by an employee from the beginning of the year to the current date. YTD units are used to track work hours for purposes such as calculating overtime, benefits eligibility, and performance metrics.
Payroll Management Payroll Introduction & Key Concepts
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Glossary of Health Plan Terms
Updated onArticleClaim: A request for payment that you or your health care provider submits to your health insurer when you receive items or services you think are covered.Claim Types: Medical Claims: Requests for payment for services such as doctor's visits, hospital stays, and surgeries. Dental Claims: Requests for payment for dental services. Vision Claims: Requests for payment for vision services. Pharmacy Claims: Requests for payment for prescription medications. Health Care Provider: Any individual or organization that provides medical services, such as doctors, hospitals, clinics, and pharmacies.Claimant Details: Information about the individual who is making the claim, which may include name, contact information, insurance policy number, date of birthRefund Details: Information regarding the reimbursement of out-of-pocket expenses paid by the claimant. Settled Claim: A claim that has been processed and for which the insurer has made a payment or has determined that no payment is due. The settlement includes details of the amounts paid and any patient responsibility.Unsettled Claim: A claim that has been submitted but has not yet been processed or paid. Unsettled claims may be pending due to various reasons, such as waiting for additional information or verification.
Benefits & Leave Management Health Plan Introduction & Key Concepts
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Overview of the Health Plan Module
Updated onArticleThe Health Plan module is closely linked to the Benefits module and is used to process health plan claims. Claims can be entered directly by HR or submitted by employees (via the Employee Self-Serve module) for updating by HR. Via the Benefits module, employees and their dependants must be registered in the Health Plan before claims can be submitted.
Benefits & Leave Management Health Plan Introduction & Key Concepts
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Barbados - P.A.Y.E. Summary/PAYE Monthly Upload Form
Updated onArticleA new report, P.A.Y.E. Summary, was added.
Release Notes Release Notes by Period: New and Improved Features 4th May to 17th June 2024
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HRplus Time - Payment Rules/Shift Payment Rules
Updated onArticleA new feature, Shift Payment Rule Week Start Date, was added to Feature Management. The feature allows for the: Activation/deactivation of its use (check/uncheck the feature) Start Date of the week to be defined i.e. 1 = Sunday; 2 = Monday. Calculation of overtime from the Start Date of the week as defined (Sunday or Monday), regardless of the pay cycle start date. Calculation of overtime for both weekly and fortnightly-paid employees. Automatic generation of the appropriate cycle changes for straight time and overtime when the timesheets are posted. Example: Employee A worked 36 hours between Monday and Thursday. Employee A worked 8 hours each on Saturday and Sunday. Employee A works no other hours in the cycle and overtime is paid in excess of 40 hours. Calculating Overtime: The system will determine the: week start date as defined in Feature Management. number of hours already worked for that week outside of the current cycle being posted (this value is taken from the timesheet history table (already paid timesheets) which were approved, not absent and part of the same payment rule). maximum hours to be paid at each rate bracket and reduce this value by the number of hours worked within the week prior to the cycle start.
Release Notes Release Notes by Period: New and Improved Features 4th May to 17th June 2024
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Payroll - Option 14 - Standard Pay Slip/Royal Bank ACH EzPay/Option 24 - Standard Pay Slip/YTD Pay Register Summary/Separate Net Pay Pay Slip (Half Page Continuous)
Updated onArticleAlignment, formatting, filters and email were improved.
Release Notes Release Notes by Period: New and Improved Features 4th May to 17th June 2024
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Appraisals - Cancelled Events/Employee Appraisal Confirmation Option/Ratings/Performance Appraisals
Updated onArticleA feature to allow employee agreement/disagreement to appraisal feedback was added. Notifications informing of the feedback will also be sent to managers.
Release Notes Release Notes by Period: New and Improved Features 4th May to 17th June 2024
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Personnel - Positions/Validate Date of Birth/Contract ID/Historical Jobs/Last Pno by Company/Vacant Positions
Updated onArticleThe ability to validate dates of birth to ensure compliance with legal age requirements was added. The default legal age is 18.
Release Notes Release Notes by Period: New and Improved Features 4th May to 17th June 2024
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Jamaica - Option 25 – Standard Pay Slip/VM Building Society Bank Download
Updated onArticleThe TRN No and NIS No are hard-coded on the pay slip and other formatting changes were made (headings capitalised, employee info placed on left).
Release Notes Release Notes by Period: New and Improved Features 17th June to 26th June 2024
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HRplus Time - Integra 32/Who Is In
Updated onArticleThe import was created to accommodate a ‘custom-formatted’ CSV file ensuring that the formats are as follows. Click the Integra 32 Import button to import the file (sample file shown below): Date = dd-mm-yyyy (e.g. 01-11-2024) Time = hh:mm:ss AM/PM (e.g.08:44:06 AM or 08:44:06 PM or 14:16:17 (24-hour)
Release Notes Release Notes by Period: New and Improved Features 17th June to 26th June 2024