Creating a Periodic Payment
What are Periodic Payments?
Periodic Payments are recurring allowances given to an employee that need to be carried out regularly, but not for each Payroll. A common example is a quarterly Director Fees allowance. Users can set up these pay items to be triggered on specific days of the year. Each time this payment is automatically triggered, it is added automatically to the payroll under which it falls.
Periodic payments are not pro rata, employees are always given the full amount due.
Creating a Periodic Payment
Method 1: Creating a Periodic Payment From the Grid
Go to HR > Main > Employees.
Select the Employee to whom you wish to make changes.
Click on the Pay Items tab.
Click on Column Selector (from the Toolbar) and select 'Days of the Year', then press 'Save'.
Add a standard pay item such as 'Director's Fees' as per the example below.
Under 'Days of the Year' insert the Day Number where the Pay Item should be triggered. An example of how to fill in this entry is then shown.
Fill in the days of the year on which you want this pay item to be triggered.
Make sure to use the format of Number,Number,Number (no spaces).
It is recommended to use these days if you want to pay this quarterly: 75,165,255,350. This means that the pay item will trigger in the Payroll which has the 75th Day of the year, 165th Day of the year, etc...
The Pay Item is created and should display the newly entered information in the Days of the Year field.
Method 2: Creating a Periodic Payment From the Form View
Repeat steps 1-5 from Method 1.
Click on Form View at the far right of the screen, above the grid headers, to switch from Grid View.
Update 'Days of the Year'. You can add days by typing in the dates manually or by selecting from the date picker.
After selecting your date, click the Add button. The day will appear in a list below the date field, and you can then add more dates as needed.
Note: The system takes the day (Day 75) into account, rather than the date (16th March). Dates are only for display purposes and updated automatically from year to year.
When you have added all the days required for the periodic payment, click Save.
How are Periodic Payments shown in the Payslip?
When a periodic payment is triggered, it will be listed in the payslip using its description. In the example below, the periodic payment triggered was 'Director's Fees'.
How do Leap Years affect Periodic Payments?
For leap years, if one of the dates entered is 29th February, the following year the payment will be triggered on 1st March. In leap years, all 31st December periodic payments will be moved automatically back to 30th December to be triggered on Day 365. Hence it is not recommended to use the last day of the month due to this occurrence but to use a Trigger date which falls in the middle of the payroll.