Hello,
In our company there is a notion of base salary which is used as base to calculate several deductions; this amount is different for every employee and is redefined every year.
I have used an accrual type account to store this base salary;
the first PS period included a YTD adjustment and the calculation of the deduction seemed to work fine; but calculation doesn't work for the following periods.
Is is possible to calculate deductions based on this value of accrual account and not just the incremental value of the accrual account?
If not is there another way to store this fictive base salary and to use it to calculate deduction and taxes?
Thank you for your help
Calculation based on Accrual Account value
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nicolas.berbigier
- Posts: 3
- Joined: Sun Nov 23, 2008 6:52 am
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nicolas.berbigier
- Posts: 3
- Joined: Sun Nov 23, 2008 6:52 am
Employee A has a salary of 2000 but a Base salary of 1000
His social security deduction is calculated as 10% on the base salary not on the real salary; the base salary is re-evalued every year
To reflect this situation I have created an accrual account base salary and a deduction of 10% of the accrual account
During the first period I made PS amendment of 1000 and ticked the YTD modification
The PS for period 1 was 2000 - 10%* 1000 = 1900 which was perfect
During the second period the PS become 2000 - 0 = 2000 which is wrong
the deduction seem to be taking the variation of the accrual account to calculate the deduction and not the actual balance
Am I missing something?
His social security deduction is calculated as 10% on the base salary not on the real salary; the base salary is re-evalued every year
To reflect this situation I have created an accrual account base salary and a deduction of 10% of the accrual account
During the first period I made PS amendment of 1000 and ticked the YTD modification
The PS for period 1 was 2000 - 10%* 1000 = 1900 which was perfect
During the second period the PS become 2000 - 0 = 2000 which is wrong
the deduction seem to be taking the variation of the accrual account to calculate the deduction and not the actual balance
Am I missing something?
I'm not sure why you've created an accrual account, or why you are using YTD PS amendments, I recommend reading the administrator guide on these for more information.
If I understand you correctly, I would instead recommend creating a "Base Salary" PS account, and a "Real Salary" ( or some other name) PS account. You can then base your deductions off the base salary amounts rather then the "real salary" amounts because they will be completely separate from one another.
If I understand you correctly, I would instead recommend creating a "Base Salary" PS account, and a "Real Salary" ( or some other name) PS account. You can then base your deductions off the base salary amounts rather then the "real salary" amounts because they will be completely separate from one another.
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nicolas.berbigier
- Posts: 3
- Joined: Sun Nov 23, 2008 6:52 am
Different Salaries
Thank you Shaunw for your reply I have tried to reread the manual extensively and still could not find a solution but I am probably missing something:
I was using accrual because I wanted to store both the base salary somewhere which would not affect Tota Gross Pay calculations
I understand you suggest I use two PS accounts for Base Salary and Real salary but I am unsure how
Is there a way to store different wages ( real and base ) for each employee somewhere for example in the wage interface; should I use recurring PS amendment which I configure employee by employee?
or is there another obvious way I am missing ?
Thanks for your help
Best Regards
I was using accrual because I wanted to store both the base salary somewhere which would not affect Tota Gross Pay calculations
I understand you suggest I use two PS accounts for Base Salary and Real salary but I am unsure how
Is there a way to store different wages ( real and base ) for each employee somewhere for example in the wage interface; should I use recurring PS amendment which I configure employee by employee?
or is there another obvious way I am missing ?
Thanks for your help
Best Regards
Tax / Deductions can be used to calculate earnings too actually, not just deductions. Recurring PS amendments can work as well, but if its something happens every single pay period, I would recommend the Tax / Deduction system instead.
For example you could create a fixed amount Tax / Deduction that deposits a specific value on a per employee basis to the "Earning - Real Salary" PS account.
You also don't need to use the Total Gross pay stub account when calculating deductions, you can instead individually select only the earning account(s) that apply to each Tax / Deduction.
For example you could create a fixed amount Tax / Deduction that deposits a specific value on a per employee basis to the "Earning - Real Salary" PS account.
You also don't need to use the Total Gross pay stub account when calculating deductions, you can instead individually select only the earning account(s) that apply to each Tax / Deduction.