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How to set up Payroll?
How to set up Payroll?
Customer Success avatar
Written by Customer Success
Updated over a week ago

The first step in calculating a payroll is to set it up. You need to set up 'payroll' in 'Settings', 'payroll' in the 'Policy', 'payroll settings' and 'tax information' in the employee profile.

Setting up payroll in 'Settings'

Go to Settings and tap payroll.

1. Adding custom allowances and deductions
If your company has other benefits and deductions besides the basic salary, you can set it in Better HR Payroll.

2. Selecting Income tax option
Allowances will only be paid once a month for the month received, meaning that the tax will be taxed depending on the monthly income.

In the Tax option, Allowance are estimated for one year, which means that the remaining months will be taxed with the same amount depending on the income of the month in which the payroll is calculated.

3. Determining fiscal year
You can choose the beginning of the month for your company’s fiscal year (Government-designated FY is Oct-Sept).

4. Entering bank information
In Bank Information, you can enter the information to be paid to the Bank after calculating payroll.

Tutorial video for your reference:

5. Choosing form close date
You can set payroll from close date for your office and either monthly payroll or twice a month.

Setting up payroll in policy of Settings
Go to Policies in Settings. Choose the policy that you want to set up payroll.

Once in that policy, click on the 'Payroll' tab.

Tutorial video for your reference:

1. Determining day rate
In Better HR, Day Rate can be calculated by Actual Working Days, Depend on the day of the month and Custom days.

2. Determining Allowances (Affect income tax and SSB)
If tax and SSB are included in each allowance, you need to check 'Affect income tax calculation' and 'Affect SSB calculation'.

3. OT calculation
You can calculate overtime with hourly rate or fixed amount.

4. Determining Deductions (Affect income tax and SSB)
In deduction, after deducting late, absent and taxes, you need to check 'Affect income tax calculation' and 'Affect SSB calculation'.

5. Absent Deduction
You can make deductions for non-attendance employees; With a multiplier rate, day rate or fixed amount.

Tutorial video for your reference:

6. Unpaid leave deduction
An unpaid leave type employee will be deducted from his/her total unpaid leave days taken within one month and the amount multiplied by the day rate.

Define payroll settings and tax information on the Employee Profile
In employee profile, you can fill salary, payment type and tax information (Note: If the employee's salary is not included in the employee profile, the salary can also be added when calculating the payroll.)

Tutorial video for your reference:

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