Create Payset - A summary of the activity

A payset is a logical grouping of those employees whose pay elements or pay element values are similar. Examples could be senior managers’ payset, staff payset, etc. Similarly, when the behavior or attributes of pay elements are common among employees, such as leave being encashment for Senior Managers, these employees can be grouped to form a payset.

Paysets are created on an assumption that all the employees in a specific payset have common pay elements based on which the pay is calculated. For example, Basic, DA, HRA and Entertainment could be the common elements of a given payset

Adding a Payset under a Payroll: To add a payset you are to uniquely identify it with a code and description, after first specifying the code of the payroll to which the payset must be attached. The payset can only be created under a specific payroll.

You are to then specify the typical characteristics of the payset, such as the minimum take-home pay specifications, the currency in which the payroll must be calculated and the rounding off method applicable. Every payset is mapped to one or more organization units.

Minimum Take Home Pay: This refers to the minimum amount that an employee can take home after deductions,. The organization policy / statutory regulations of the country determine the minimum take home amount in a payset and whether the employee’s deductions can encroach into his/her minimum take-home pay amount. To incorporate the organization’s policy / statutory regulations of the country into the payset, you can change the carry over characteristics of each pay element mapped to the payset. This is to be carried out in the “Map Pay Element to Payset” activity, where you indicate for each pay element whether

• The deduction amount must be recovered partially from this pay element. The remaining amount will be automatically carried over and recovered in the next payroll process, or

• The full amount must be carried over to the next process period for recovery.

You can also specify, during the pay element-payset mapping, that a pay element can override the minimum take home pay, such as when the pay element is Tax.

You can determine the minimum take home pay amount in three ways:

• Specify the amount of salary

• Specify a percentage on the gross pay

•  Define a rule based on which the take-home amount is calculated

The rounding off method applicable: The round factor is the value or unit to which salaries can be adjusted or rounded off, when the net pay is a decimal number (for example, $4544.43).  A round factor can be of four types.

• Floor type: In this type, the salary is rounded off to the previous lower value that you defined as the round factor.

• Ceiling: In this type the salary is rounded off to the next consecutively higher value that you defined as the round factor.

• Actual: The salary remains the same without being rounded off.

• Nearest: In this type, the salary is rounded off to the nearest whole number.

For example, if the net salary of an employee = $4544.43 and the Round Factor = 10, the value will be as follows:

•  In “Floor“, the net salary is $4540.

• In “Ceiling“, the net salary is  $4550

•  In “Actual“, the net salary is $4544.43

• In “Nearest“, the net salary is $4540.

Through this activity, you can create various paysets that are applicable to an organization.

Getting familiar with the pages inside  

6 Hyperlinked topics below

Prerequisites  

 Payroll must be defined in the “Create Payroll” activity

 The currencies must be defined in the financial components.

What you can do in this activity  

Create a payset

Create a payset

You can create a payset under a payroll.

•  Select the “Create Payset” activity.

•  Specify a unique code and short description.

•  Specify a payroll under which the payset is created

• Set a currency for the payset

• Specify the minimum take home pay.

•  Make applicable to other organization units.