Total Monthly Gross for All payperiods except for monthly.

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allanregistos
Posts: 41
Joined: Wed Oct 21, 2009 11:56 pm
Location: Philippines
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Total Monthly Gross for All payperiods except for monthly.

Post by allanregistos »

I think there is a need to know the monthly gross income of an employee. Currently, I can't see any way to determine the total monthly gross of an employee at least for this version Standard 3.0.6 except of course if the pay period is monthly. All pay periods except monthly, have no way to automatically determine the gross amount of an employee for any given month.

Daily, weekly, bi-weekly and Semi-monthly pay periods must have the Total Gross income for the whole month. This is useful if there are deductions and contributions that may depend their computation on the monthly income of an employee regardless of what pay periods they've been using.
shaunw
Posts: 7839
Joined: Tue Sep 19, 2006 2:22 pm

Re: Total Monthly Gross for All payperiods except for monthly.

Post by shaunw »

It would help if you could post a link to one or more documents that specifically state that calculations and deductions must only occur once per month and at no other time interval regardless of your current pay period schedule.

I assume you are referring to the Philippine Social Security System (SSS) and from any research that we have done it is common place to withhold this from employees on a non-monthly basis (ie: semi-monthly) and remit it to the government on a monthly basis. In fact this is common in the vast majority of countries around the world, including Canada and the United States.
allanregistos
Posts: 41
Joined: Wed Oct 21, 2009 11:56 pm
Location: Philippines
Contact:

Re: Total Monthly Gross for All payperiods except for monthly.

Post by allanregistos »

shaunw wrote:It would help if you could post a link to one or more documents that specifically state that calculations and deductions must only occur once per month and at no other time interval regardless of your current pay period schedule.

I assume you are referring to the Philippine Social Security System (SSS) and from any research that we have done it is common place to withhold this from employees on a non-monthly basis (ie: semi-monthly) and remit it to the government on a monthly basis. In fact this is common in the vast majority of countries around the world, including Canada and the United States.
I really don't know if this would help us out in the Philippines if we do not need to have a specific monthly income to base our computation for SSS.
Take for example this Philippine online payroll:
http://www.suweldo.net/Index.aspx
They created a sample computation for SSS:
http://www.sweldista.com/Tables/sss200701.aspx

The only option is Gross Pay(For The Month) amount. It is monthly. Regardless of the payperiod, if an employee was paid only for his work for a single day in a given month, or he work only for 15 days for the whole month, the important thing is the whole month gross income, regardless of the amount he earned from his specific payperiod i.e., be it daily, weekly, bi-weekly and semi-monthly. Example, in daily payperiod, all 26 days' income in a given month must be assumed as the whole monthly gross income, regardless if he was working or not for the whole month. The sum is all needed to have a proper computation for SSS. Even if it is okay to compute semi-monthly and add the contribution at every end of the month, I am breaking the traditional method of SSS monthly deduction that would frustrate the accounting department.

One more example is the former payroll system I worked:
http://sourceforge.net/projects/openpayroll/ contains the code that let the system use the whole gross month amount for computation rather than other payperiods.
shaunw
Posts: 7839
Joined: Tue Sep 19, 2006 2:22 pm

Re: Total Monthly Gross for All payperiods except for monthly.

Post by shaunw »

A simple Google search for something like "phillipines social security system semi-monthly withholding" returns many examples of people and software calculating SSS on a non-monthly basis. I don't see how this would frustrate your accounting department or the employees, like I said before, its an extremely common practice all over the world. Just because most of the examples shown are monthly does not mean thats the only method of calculation/withholding, many countries only give annual calculations as examples as both annual, and monthly are the easiest to base other time periods on.

In fact I can give several examples where monthly calculations would actually be impossible to do properly. Take for example a semi-monthly pay period schedule, where the employee worked the first pay period in the month for 10 days, and earned $1000, no SSS was calculated or withheld (as its not the end of the month). The employee then worked one day (or none) in the second pay period then either quit, left, or was sick for the rest of the pay period. The employee wouldn't have earned enough money to pay the SSS for the entire month, so his pay stub for the 2nd pay period in the month would be a negative net amount. What now?

If you want to frustrate accounting departments, start having employees who owe the company money and you'll do it quite quickly. Compare this to simply running a report in TimeTrex over two pay periods instead of one to get the total SSS withheld for the month. A simple process that takes only a few seconds.

The bottom line is that unless you can show us the exact law that states SSS withholding and calculation must be calculated and remitted on a monthly basis only, this feature request won't even make it on our TODO list.
allanregistos
Posts: 41
Joined: Wed Oct 21, 2009 11:56 pm
Location: Philippines
Contact:

Re: Total Monthly Gross for All payperiods except for monthly.

Post by allanregistos »

shaunw wrote:A simple Google search for something like "phillipines social security system semi-monthly withholding" returns many examples of people and software calculating SSS on a non-monthly basis. I don't see how this would frustrate your accounting department or the employees, like I said before, its an extremely common practice all over the world. Just because most of the examples shown are monthly does not mean thats the only method of calculation/withholding, many countries only give annual calculations as examples as both annual, and monthly are the easiest to base other time periods on.

In fact I can give several examples where monthly calculations would actually be impossible to do properly. Take for example a semi-monthly pay period schedule, where the employee worked the first pay period in the month for 10 days, and earned $1000, no SSS was calculated or withheld (as its not the end of the month). The employee then worked one day (or none) in the second pay period then either quit, left, or was sick for the rest of the pay period. The employee wouldn't have earned enough money to pay the SSS for the entire month, so his pay stub for the 2nd pay period in the month would be a negative net amount. What now?

If you want to frustrate accounting departments, start having employees who owe the company money and you'll do it quite quickly. Compare this to simply running a report in TimeTrex over two pay periods instead of one to get the total SSS withheld for the month. A simple process that takes only a few seconds.

The bottom line is that unless you can show us the exact law that states SSS withholding and calculation must be calculated and remitted on a monthly basis only, this feature request won't even make it on our TODO list.
Okay, I think I have missed something here, for not being an accounting staff myself, I think I need to communicate more of this stuff to the accounting people to better understand how SSS and other contributions works.

Thanks...
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