What is the Net Adjustment Calculator?
Thanks to the Net Adjustment Calculator, the Payroll Calculation can calculate employees' take-home pay, Tax and SSC based on the net amount rather than the gross. Indigo does this by calculating what adjustment is needed to match the net amount, while taking into consideration the employee's Tax and SSC deductions due, so that neither you nor your employee need to make any extra calculations afterwards.
What Settings do I need for the Net Adjustment Calculator?
Go to Payroll & Leave > Main > Settings.
Navigate to Payroll > Calculation Settings and press Edit.
Tick 'Enable net to gross adjustment',
Select a Pay Item in 'Net to gross payitem name' field.
Note: Only taxable Pay Items can be chosen.
Click Save.
Using the Net Adjustment Calculator
Setting your Employee's Net Pay
Once the correct settings have been enabled, you can go ahead and set your employee's Net Pay in the Employee's Basic Pay tab.
Go to HR > Main > Employees.
Select the employee to be edited and click the Basic Pays tab.
Click Insert.
Enter the Effective Date, Basic Pay Amount, and Net Pay Amount.
Click Save.
The employee still needs to have the (Gross) Basic Pay field entered. The system will then calculate the amount of the Pay Item when calculating the payroll to get to the Net Value.
Running the Payroll Calculation
Go to Payroll & Leave > Main > Payrolls and open the next Payroll.
Select the employee/s you wish to calculate and click Calculate.
The system will calculate the Gross Wage normally, however the system will automatically trigger the Pay Item to work out the exact Net Amount the user inserted.
Note: The Pay Item triggered by the system can be either a Negative or Positive value, depending on the original Net Amount calculated.