Introduction
Welcome to this user-friendly guide on how to create and manage Employee Salary Structures in Empress.
A Salary Structure is a critical element in the management of employee compensation. It encompasses various components such as basic pay, allowances, bonuses, and deductions. Changes to a Salary Structure can significantly impact aspects such as an employee’s tax exemptions.
With Empress, you can easily manage Salary Structures, define earnings and deductions, set payroll frequency, and choose payment modes.
Navigating to Salary Structure
To start, let’s head over to the Salary Structure section. You can do this by following this path:
Home > Human Resources > Payroll > Salary Structure
Prerequisites
Before we can create a Salary Structure, make sure you have already set up the Salary Component.
Creating a Salary Structure
To create a new Salary Structure, follow these simple steps:
- Navigate to the Salary Structure list and click on ‘New’.
- Enter your desired Salary Structure Name.
- Select the relevant Company Name and Payroll Frequency.
- Click on Save, then Submit.
Understanding Key Features of Salary Structure
There are several important features in the Salary Structure that you need to know:
Earnings and Deductions
‘Earnings’ are the different components that make up an employee’s total salary, such as basic pay, allowances, bonuses, and incentives. ‘Deductions’, on the other hand, are the components taken away from the total salary, typically taxes.
To specify Earnings and Deductions, select the Salary Component in the Component column. If not defined earlier, you can enter the Formula/Condition when creating the Salary Component. You can also input a pre-set amount in the Amount column.
Account
In this section, you can specify the Mode of Payment and the Payment Account used for salary disbursement.
Salary Structure Based on Timesheets
Empress allows you to create a Salary Structure based on Timesheets. This feature is perfect for businesses that pay employees according to their work hours.
To create a Salary Structure based on Timesheets, follow these steps:
- Navigate to the Salary Structure List and click on ‘New’.
- Tick the checkbox Salary Slip Based on Timesheet.
- Choose the appropriate Salary Component.
- Enter the Hour Rate. The amount for Working hours for the selected Salary Component will be calculated based on this rate.
- Click on Save, then Submit.
Leave Encashment Amount Per Day
If an employee has leaves that they can encash, you can define the daily leave encashment amount for this Salary Structure.
Max Benefits (Amount)
You can also specify the Max Benefits Amount for the Salary Structure. If you do this, make sure the Salary Structure has a Salary Component with the “Is Flexible Benefits” option checked.
Assigning the Salary Structure
After you’ve saved and submitted all the information, you can assign the Salary Structure to an Employee either through the Assign Salary Structure button or by creating a new Salary Structure Assignment.
You can also assign the created Salary Structure to multiple employees based on their grade, department, role, and more through the ‘Assign to Employees’ button.
Conclusion
Creating and managing Salary Structures in Empress is a breeze. By following this guide, you’ll be able to effectively manage your employees’ compensation, making your HR processes more efficient. For additional resources or support, feel free to explore the Empress Help Center or contact our Support Team.