Payroll from hiring order to payment

What is inside

1. 01

   Rates with effective dates

   Personal income tax at 18%, the single social contribution at 22% (8.41% for people with disabilities), the military levy at 5%, the minimum wage, the social tax benefit and the contribution cap are stored in a table with effective dates and history. Each calculation uses the value in force on its date.

   Screen Q3Rates table with effective dates and value history

2. 02

   Taxes per person, not per document

   The contribution cap, the minimum contribution base and the social tax benefit are calculated over the person’s whole month, even when the accruals are split across several documents. If several benefits apply, the system uses the largest one, and it adds the top-up to the minimum wage on its own.

   Screen Q1Payroll accrual with social contribution, income tax, military levy and net pay for each employee

3. 03

   Vacation and sick pay from average earnings

   Vacation pay is calculated under Cabinet of Ministers Procedure No. 100. Sick pay follows Procedure No. 1266, and the percentage paid depends on length of service. The employer pays the first five days of sick leave, and the rest goes through settlements with state social insurance.

4. 04

   Termination with a final settlement

   The system calculates compensation for unused leave and the deduction for leave taken in advance, with a list of exceptions for that deduction. Termination ends with the final settlement.

   Screen Q2Termination order with the settlement panel

5. 05

   Payments and deductions

   The amount owed to the employee comes from the journal, and the advance is capped by the period plan. Unclaimed wages are held as deposited amounts, and those older than three years are written off. Standing deductions (alimony, loan repayments, union dues) stay within a ceiling, and the remainder is carried forward.

6. 06

   Timesheets and dated employment terms

   The system fills timesheets from the work schedule and the working calendar. Employment terms apply from a date, so a mid-month transfer splits the salary into periods. Vacation pay, sick pay and salaries are accrued as month-end close steps.