Employee Setup

Employee Setup defines the annual payroll configuration for each employee. This guide covers creating and managing employee payroll setups.

What is Employee Setup?

Employee Setup is a configuration record that specifies the payroll amounts for an individual employee for a specific payroll type and year. It contains:

• The payroll type the employee is assigned to
• The fiscal year the setup applies to
• The amount for each payroll item in the payroll type
• Calculated totals for gross, deductions, loans, and earnings

Viewing Employee Payroll Information

Employee List

1. Go to Payroll > Employees
2. View the list of all employees
3. Use filters to narrow by employment type or organization
4. Click an employee to view their payroll history

Employee Payroll Profile

The employee profile shows:

Creating an Employee Setup

Step 1: Navigate to Employee Setup

1. Go to Payroll > Employees
2. Click on the employee's name
3. Click Create Setup

Step 2: Select Payroll Type and Year

Step 3: Enter Payroll Item Amounts

After selecting the payroll type, all payroll items from that type are displayed. Enter the annual amount for each applicable item.

Step 4: Save the Setup

1. Review all entered amounts
2. Verify totals are correct
3. Click Save

Setup Calculation

The system can automatically calculate certain payroll items based on the employee's salary and statutory rates.

Using Setup Calculation

1. Create a new employee setup
2. Enter the basic salary amount
3. Click Calculate
4. System automatically computes:
   • GSIS contributions (employee and employer shares)
   • PhilHealth contributions
   • Pag-IBIG contributions
   • Withholding tax (based on tax brackets)

Calculated Items

Note: Calculated values are estimates. Verify against current government rates and adjust as needed.

Employee Setup Structure

Setup Summary

Example Setup

Employee: Juan Dela Cruz
Payroll Type: Regular
Year: 2024

GROSS PAY
├── Basic Salary: ₱35,000.00
├── PERA: ₱2,000.00
└── ACA: ₱1,000.00
    Total Gross: ₱38,000.00

STATUTORY DEDUCTIONS
├── GSIS RLIP (Employee): ₱3,150.00
├── PhilHealth (Employee): ₱525.00
├── Pag-IBIG (Employee): ₱100.00
└── Withholding Tax: ₱2,500.00
    Total Deductions: ₱6,275.00

EMPLOYER SHARE
├── GSIS RLIP (Employer): ₱4,200.00
├── GSIS ECIP: ₱350.00
├── PhilHealth (Employer): ₱525.00
└── Pag-IBIG (Employer): ₱100.00
    Total Gov't Share: ₱5,175.00

NET PAY: ₱31,725.00

Editing an Employee Setup

Modifying Amounts

1. Go to Payroll > Employees
2. Click on the employee
3. Click on the setup to edit
4. Modify the item amounts
5. Save changes

When to Edit Setups

• Salary adjustment or promotion
• Change in deduction amounts
• New benefit or allowance
• Loan addition or completion
• Annual rate updates

Important: Changes to employee setup affect future payroll runs. Published payroll runs are not affected by setup changes.

Cloning Employee Setup

Clone setups to quickly configure similar employees.

How to Clone

1. Go to the employee setup to clone
2. Click Clone
3. Select the target employee
4. Modify amounts as needed
5. Save the new setup

Clone Use Cases

• New employee with similar compensation
• Annual setup rollover to new year
• Bulk setup for employees in same position

Bulk Setup Operations

Creating Setups for Multiple Employees

1. Ensure employees are assigned to a roster
2. Use the roster's bulk setup feature
3. Apply a template or copy from existing setups

Annual Rollover

At the start of a new fiscal year:

1. Review current year setups
2. Clone setups to the new year
3. Update amounts for rate changes
4. Verify calculations

Setup Validation

Required Information

Validation Rules

• Amounts cannot be negative
• Employee can only have one setup per payroll type per year
• Payroll type must have items defined

Viewing Setup History

Setup List

1. Go to Payroll > Employees
2. Click on the employee
3. View the Setup History section
4. See all setups across years and payroll types

Setup Details

Each setup record shows:

Best Practices

Initial Setup

• Verify employee's salary grade and step
• Check current statutory contribution rates
• Include all applicable allowances
• Account for existing loans

Ongoing Maintenance

• Update setups when salary changes occur
• Review annually for rate adjustments
• Remove completed loans
• Add new benefits when granted

Data Accuracy

• Cross-reference with HR records
• Verify government contribution rates
• Double-check tax bracket calculations
• Document any special arrangements

Common Issues and Solutions

Issue: Cannot Create Setup

Possible Causes:

1. Setup already exists for this payroll type and year
2. Payroll type has no items configured
3. Employee not in the system

Solutions:

• Edit existing setup instead of creating new
• Configure payroll type items first
• Verify employee record exists

Issue: Calculated Amounts Incorrect

Possible Causes:

1. Outdated contribution rates in system
2. Basic salary entered incorrectly
3. Tax bracket tables not current

Solutions:

• Verify current government rates
• Check basic salary entry
• Contact administrator to update rate tables

Issue: Employee Missing from Roster

Possible Causes:

1. Setup created but employee not added to roster
2. Employee assigned to different payroll type
3. Roster filter excluding employee

Solutions:

• Add employee to appropriate roster
• Verify payroll type assignment matches
• Clear roster filters and search

Issue: Setup Not Reflected in Payroll

Possible Causes:

1. Setup year doesn't match payroll run year
2. Setup created after payroll was processed
3. Employee not in the processed roster

Solutions:

• Verify setup year matches pay period
• Create new payroll run to include updates
• Check roster membership