Payroll Policy - General Settings

This article explains how to configure the General Settings section of a payroll policy.

Step 1

On the left menu, go to Settings (a) > Payroll (b) > Payroll Policies (c).

Step 2

There are four employee payment types available:

1. Monthly – Employees are paid a fixed monthly salary.
2. Daily – Employees are paid based on the number of days worked.
3. Hourly – Employees are paid based on hours worked.
4. Custom Period – Employees are paid according to a custom payroll period defined by the company.

Choose the payment type that matches your company's payroll practice. 

Select an existing payroll policy or click Add New to create a new payroll policy.

Step 3

Configure the settings under the General Settings tab:

1. General
2. Payroll Rounding Method
3. Salary
4. Bi-weekly Mid Month Salary Setting
5. Overtime
6. Leave
7. Employee Self-Service Policy

For daily payment type, only have to set up General, Payroll Rounding Method, Overtime, Employee Self Service.

For hourly payment type, only have to set up General, Overtime, Employee Self Service

A. General

Working day needs to refer to: Choose how the system determines working days for payroll calculations.

• Calendar Days – Uses Monday to Friday as working days by default.
• Attendance Schedule – Uses the employee's assigned attendance schedule to determine working days.

Negative Nett Paid: Choose how the system handles negative nett pay.

• Become Zero – Nett pay will be capped at RM0.00.
• Deduct in Next Payroll – The negative balance will be carried forward and deducted from a future payroll.

Only Pull Hours Within Shift Schedule (Hourly Payment Type Only)

Choose whether the system should only calculate working hours that fall within the employee's assigned shift schedule.

• Enabled – Only hours recorded within the scheduled shift will be included in payroll calculations.
• Disabled – All approved working hours will be included in payroll calculations, regardless of the assigned shift schedule.

B. Payroll Rounding Method

Choose either None / Up / Down / Nearest rounding for these payroll figures during salary calculation.

• Earning Rounding – Defines how earnings are rounded.
• Deduction Rounding – Defines how deductions are rounded.
• Net Pay Rounding – Defines how the final net pay amount is rounded.
  

C. Salary

Choose how the system calculates prorated salary for:

• New hire employee
• Resigned employee
• Salary increment

Available options in each formula:

• Calendar Month – Uses the actual number of days in the payroll month.
• Custom – Uses a fixed number of days defined by the company.

D. Bi-weekly Mid Month Salary Setting

If your company pays employees twice a month, select the Mid Month Salary Calculation Based On either the Cut-Off (in Cut Off Period Tab) or based on the Percentage of their Full Salary.

E. Overtime

a. Split OPR by Day Type: Enable this option to calculate the Ordinary Pay Rate (OPR) separately for different day types:

• Workday
• Rest Day
• Off Day
• Holiday

b. Ordinary Pay Rate – If Split OPR by Day Type is disabled, define a single OPR calculation for ALL day types.

c. Enable Maximum Overtime Hours – Set the maximum number of overtime hours that can be paid. Any overtime exceeding the specified limit will not be included in payroll calculations.

d. Enable Maximum Overtime Amount – Set the maximum overtime amount payable. Once the limit is reached, additional overtime earnings will not be calculated.

Refer to: How to Manage and Convert Overtime Hours Above the Monthly Limit

e. Earnings in Overtime Formula is Based on Which Period? – Choose which earnings period the system should use when calculating overtime.

f. Entitle Overtime is Not More Than – Set a salary threshold for overtime eligibility. Employees whose salary exceeds this amount will not be entitled to overtime pay.

g. Maximum (Salary + Earnings) Amount for Overtime Formula – Set the maximum salary and earnings amount that can be used in overtime calculations. If an employee's salary exceeds the specified amount, the system will calculate overtime based on the defined cap.

F. Leave

Configure the formulas used for:

• Unpaid Leave
• Unpaid Time Off
• Leave Encashment

Update the hour value according to your company's policy.

Note: Leave encashment is not automated by the system. Refer to Leave Encashment for Unutilized Leave Balance to manually process leave encashment for employees.

G. Employee Self-Service Policy

Payslip Availability: Choose when employees can view their payslips:

• Immediately – Payslips become available once payroll processing is completed.
• Fixed Date – Release payslips a specified number of days before or after the payroll month or payment month.
• Relative Date – Release payslips a specified number of days after the payment date.

Email Notification on Payslip Availability – Employees receive an email on payslip availability

Require Acknowledgement / Require Filled in First & Last Name – Enable this option if employees are required to acknowledge and fill in their name as when they view their payslip.

Card Information to Display – Select the employee information to be displayed on the payslip. For more information, refer to Employee Info on Payslip: Card Info Display

To learn more about payslip release settings, refer to: Staff Cannot View Payslip and Payslip Email Notification & Password.

Step 4

Click Continue to proceed to the Cut-Off Settings page.

Next, refer to Payroll Policy - Cut Off article to configure your payroll cut-off.

We hope this explanation clarifies the matter. If you require additional assistance, do not hesitate to contact our support team.