How to stop worrying and start managing your Payroll like a Pro
Hint : Use Fedena!
The value a school ERP provides for an institution is provided by the problems it is solving for process planning and execution. Managing employee payrolls, loss of pays, and leaves play a huge role in any institution and we have been continuously working towards providing the best solution for any and every school.
Softwares like Fedena or other school ERPs come with a huge bundle of modules and plugins, some of them which are essential for a school and some of them which serve a specific niche purpose. We have been working on the HR module in Fedena over the past few updates and we feel some of you might have missed these important changes we have added.
Creating a Canvas for your HR Problems
In the first phase, we built the HR module from the bottom up to bring in many new features. The two major changes we did were the addition of Payroll Groups and Loss of Pay calculation.
Payroll Groups allow institutions to configure different salary structures for different types of employees. For example, your administration staff and your academic staff may have different salary heads. With payroll groups, you can ensure your employee salaries remain distinct.
Leaves and Loss of Pay calculation have been a high-demand feature from institutions. The Loss of Pay formula given to a Payroll Group is used to calculate the Loss of Pay when additional leaves are taken. Loss of Pay being a management decision varies from institution to institution and hence the user has the option to apply & choose the Loss of Pay leaves. The admin staff also have freedom to configure the formula for the Loss of Pay calculation as these formulas differ from management to management.
Drawing out the solutions for your HR Problems
After completing the first phase of the revamp with Payroll Groups, Leaves and Loss of Pay changes, we set out to improve other features. Based on input from different types of institutions a new mode of salary calculation was added to the Payroll Groups. This new Custom Mode released in Fedena 3.5.3 (Nix), is beneficial for institutions (especially schools) who calculate the salary from a single payroll category like Basic Salary. With Fedena 3.5.4 we are also bringing a new prorated Loss of Pay calculation mode to give more options to calculate the Loss of Pay.
In this new mode, the Loss of Pay (LOP) can be pro-rated across multiple payroll categories. This allows more flexibility for institutions where Loss of Pay means the other categories are also pro-rated accordingly.
Let’s consider a simple salary structure. The Basic Salary is 10,000 and Tax is 20% of Basic Salary. If the total working days are 20 and the employee having no leave takes 2 LOP days. The LOP can be configured in two ways now:
As a direct deduction
LOP is 1000
Basic Salary = 10,000
Tax = 2000
Loss of Pay = 1000
Net Salary = 7000
As a deduction from Payroll Categories
LOP = 1000
New Basic = 10000-1000 = 9000
Tax = 1,800
Net Salary = 7,200
Adding a few final strokes
We are bringing further changes in the HR module in the coming weeks. With more options in leave management, you will be able to configure different leaves for different employees.
Being hosted in servers with latest security measures ensures your payroll and payslip data is safe in Fedena and only accessible to whom you give privilege.
For any further assistance in figuring out the new Human Resources Features, do get in touch with our support team. So what are you waiting for? Get started with Leave and Payroll management with your favourite school management system.
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