How do I calculate and pay arrears to employees?#

Greytip Online has a comprehensive arrears calculation module. Arrears can be calculated from any specific month or date.

  1. To calculate arrears for an employee, reach the Arrears screen by clicking on the Arrears menu item under the Payroll menu.
  2. The arrears screen will be displayed.
  3. You will then need to add the employees for whom the arrears need to be computed. There are multiple ways in which you can add employees to the list.
    1. You can search for an employee in the Employee Search box and add him to the list (see box 1).
    2. You can import the employees from an Excel file. To do this, click on the Excel Import button. The format in which the data for import is to be specified is here (see box 2).
    3. You can add employees who match a specific criteria. To do this, click on the Query & Add button. To know how you can use the Criteria Builder to achieve this, click here (see box 3).
  4. Once an employee is added to the list, you need to specify the date from which the new salary is effective. This can be specified in the Arrear Date column (see box 4).
  5. The Payroll Date column is automatically populated with the first date of the current Payroll month.
  6. Click on the Save button to save your changes (see box 5).
  7. The arrears module assumes that you have already updated the revised salary for employees in the Salary Information screen.
  8. Note that when you are updating the amounts in the Salary Information, the date of change should be the current month and not the Effective Date from which this component is applicable. The effective date should be specified in the Remarks column when updating the information.
  9. Mark the employees and click on the Process button (see box 6).
  10. The arrears is calculated and the relevant components are updated.
  11. You can see the amounts by selecting the employee and clicking on the Preview button (see box 7).
  12. Click on the Delete button if you want to remove a person's arrear from being processed. Once removed you will need to re-process the Payroll for that person for all arrears related components to be removed (see box 8).
  13. Note that you need to process the arrears here before processing the final payroll.

Logic for calculation of arrears is given below:
  • The latest amount as updated in the Salary Information is taken and calculated from the end of the previous month upto the specified Arrear Date.
  • From this amount, the total of all amounts paid from the arrear effective date till end of the previous month is subtracted.
  • The remaining amount is posted into the Arrears component of the item. For e.g. the arrears of Basic is posted into the Basic Arrears component.
  • If there are any Loss of Pay in the arrear period, the same is handled while calculating the number of days.

See also:#

«
This page (revision-) was last changed on 12-Apr-2009 09:06 by Girish Rowjee