2interact

Interact HRMS has more than one type of Payroll

Posted by
|

Ease of Use is a key concern for us at 2Interact and we make sure that while we offer very sophisticated functionality that is global and therefore highly configurable and generic, we also keep a laser focus on simplicity and ease of use.   Many software providers take the easy road by creating unlimited screens and forms for every feature under the sun and thereby drown their users in complexity.  It’s much harder to design an enterprise Payroll that not only has depth and breadth in its functionality, but is also simple to use.  In other words… you shouldn’t need a PhD to run a Payroll in a good enterprise system.

That brings us to the different pay cycles and different types of payroll.  Interact HRMS supports any Pay Cycle / Pay Period you can dream of (Weekly, Biweekly, Semi Monthly, Monthly, Quarterly or custom-periods), these Pay Cycles/Periods can of course all be managed in one single company.  You differentiate by defining different Employee Groups and each Employee Group can have its own Pay Cycle.

In addition to these different pay cycles, Interact also supports different types of payroll:

1) Normal Payroll Cycle (NPC): This is where you run the regular pay period based payroll for every employee.  Every one of your employees will get a Normal Payroll Cycle once every pay period.  Not more, not less.

2) Off Cycle Payroll (OCP): This is where you can process one-off transactions for employees, to handle their exceptions which cannot wait till the normal payroll cycle is run or which for other reasons must be handled outside of the normal payroll cycle.  You can do multiple Off Cycle Payroll transactions for a single employee in a single pay period.  An example of an Off Cycle Payroll could be a Salary Advance, and through the sophisticated and seamless integration between NPC and OCP this can be configured that this Salary Advance will automatically be deducted from the employee’s regular pay (NPC) at the end of the pay period.  So there is no chance of accidental dual payment.

3) Retroactive Payroll (RP): This is where the user can manage payroll calculations which are affected by transactions which are processed with an effective date in the past.  The process ensures that the application will automatically calculate the impact on the subsequent months until the current date and include the correct additional amount or deduction in the current pay period.  An example of a Retroactive Payroll process is when for example 124 employees are given merit increases effective 5 pay periods earlier than today (maybe the board approval took longer than expected but it still would be effective as of a specific date in the past).  Using Interact HRMS Retroactive Payroll, the system can automatically calculate what the difference is in pay for the previous 5 pay periods and this difference will be included as a Retroactive Payroll Adjustment in the current Pay Period.

4) End of Service Payroll (EOSP): The End of Service Payroll handles the “Final Pay” for an employee who is separating from the organization.  Depending on the rules defined, the employee may be entitled to certain gratuity payments, they will of course be entitled to their final pro-rated salary, payment for accrued leave/vacation that has not been used yet, and maybe there are outstanding loans or other liabilities to the company which all need to be settled as part of this calculation.  It is obvious that this is a separate process which should not be mixed up with the regular Normal Payroll Cycle, not in the least because the date of this EOS Payroll can be any time during the pay period.

Interact HRMS offers the above four processes as distinctive processes which at the same time are very flexible and intuitive, highly configurable and setup to work with seamless integration with all other Normal Payroll Cycle processes wherever the integration will save the user time.


© 2019 2Interact Inc., USA. All rights reserved. Copyright/Trademarks.

Login

Lost your password?