We have introduced a new product module for salary payment called Payroll. It enables our client to process the salary payment for its employees via our platform.

The payroll module has features to add beneficiaries and create payments with limited access to payroll module or ledger involved for the payments i.e. even all admins can't see it. Thus, maintaining the secrecy involved with the salary payment of employees.

The payroll module is designed to remove the client's dependency on banks to create beneficiaries and send/initiate salary payments.

Note: Create employee and Create Payment - Creating an employee is similar to creating a vendor in the bill pay. The main difference in payroll the entity is always Individual. And the ledger entry for employee payment will come under Accounts > payroll and all ledger, visible to payroll admins and accountants only.

Enable payroll

The payroll module can be enabled from the Manage > Payroll section. In order to enable payroll, the client is supposed to select at least one admin user who will have access to the payroll.

Just like the reimbursement module, once the payroll module is enabled, it can't be disabled back from UI. The UI for the payroll manage section will be different for the admins who have access to payroll and the one who doesn't. Admins having access to payroll can see the payroll settings and the other admins will see the list of users having access to payroll.

The payroll settings involve Mandatory fields, Payroll admin and Approval policy. Payroll has its own independent approval policy. The approver for the payroll approval policy will be the user who has access to the payroll module.

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Payroll account

Once the payroll is enabled from the Manage > Payroll section, the payroll account can only be seen by the admin who has access to payroll (let's call the role as Payroll admin ). The payroll account can be seen from the Dashboard > Overview section. The payroll account widget shows the balance in the payroll account, the number of processing payments and the CTA to allocate funds from the base currency account to the payroll account.

Fund allocation

This feature is accessible to payroll admins from the Dashboard > Overview section and will be used to allocate funds from the base currency account to the payroll account. Funds allocated to the payroll account will create the debit entry in the base currency ledger and credit entry in the payroll ledger.

Funds can't be transferred back from the payroll account to the base currency account.

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How it appears in the Ledger

Fund allocation in ledger

Fund allocation from the base currency account into payroll reflect in the following way in the respective ledgers.

  1. Base currency ledger

    1. Ledger description - Debit prefunding from payments SGD to payroll SGD

    2. Ledger type - debit_prefunding

    3. Transaction type - Debit

  2. Payroll ledger

    1. PLedger description - Credit prefunding from payments SGD to payroll SGD

    2. Ledger type - credit_prefunding

    3. Transaction type - Credit

Payroll payment in ledger

Salary payments to employees reflect in the following way in the payroll ledger.

  1. Ledger description - <vendor_name>

  2. Ledger type - Payment

  3. Transaction type - Debit

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