Overview
With 1st of January falling on a Wednesday, if you are calculating fortnightly payroll periods, you may decide to adjust the last payroll of the year to pay up to 31st December. In such cases, Indigo provides the functionality to adjust the number of extra days paid and Social Security Contributions (SSC) as required.
CASE 1: Creating a Fortnightly Payroll starting 16th December
To close off the year you may decide to pay the extra two days up to 31st December in the last payroll. To achieve this, proceed as follow 👇.
Go to Payroll&Leave > Payrolls > select Insert ➕
Fill up the fields accordingly.
Enter 2 extra days in the Extra days field.
This means that for this payroll employees would be paid for approximately 96 basic hours instead of the usual 80.
Change the value in the SSC contribution field to 3.
Since 2024 is a Leap Year, there is an extra Monday to consider, making a total of 53 Mondays. Therefore, an additional SSC contribution needs to be included in this payroll to reconcile the total number of SSCs added during the year with the actual number of Mondays. Make sure not to exceed such amount.
Besides, the SSC must be deducted at the current year's rate, as in the following year the SSC rates will change due to the cost-of-living adjustment.
If you also want to deduct the extra 2 days in the first payroll of 2025, you should proceed with a similar adjustment but with a negative amount.
CASE 2: Creating a Fortnightly Payroll starting 23rd December
Another option is to pay for just one Week and two Days to close off the year up to the 31st December. Below the steps t o achieve this 👇.
Go to Payroll&Leave > Payrolls > select Insert ➕
Fill up the fields accordingly.
Enter -5 in the Extra days field to deduct the first days of January.
Set the value in the SSC contribution field to 2.
This is because two SSC contribution must be deducted from this payroll, unless the total amount of SSCs for the year 2024 is not 53.
If you also want to deduct the extra 5 days in the first payroll of 2025, you should proceed with a similar adjustment.
🤔 To Keep in Mind
2024 is a Leap Year and the employees should have a total of 53 SSCs deducted for the year.
If your payroll spans across the beginning of 2025, you have to carefully apply the weekly cost of living increase effective 01/01/2025 before calculating, so that dates in 2025 are paid at the new rate.
If you pay Every 4 Weeks, you can refer to the above similar cases, depending on when your payroll end date falls in.
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