Buddy's payroll calculations, especially when using AccuPay™, are designed to calculate hours as accurately as possible.
Users are still given additional settings to customise how hours are calculated and presented in payslips. To access these settings:
- Go to Company Settings
- Under Rules, Click Payroll.
Payroll Calculation
Setting A
- When using timesheets always pay exact hours and not average hours. i.e. Do not use 173.33 hours for monthly payslips
This setting will allow you to edit base hours for all employees. If you Process Timesheets, the base hours will equal the hours worked and leave inputted before processing, excluding any overtime hours.
Setting B
- Pay newly engaged or terminated employees based on actual hours worked, not on an average calculation
This setting will allow you to edit the base hours only for employees who are terminated or engaged within that period. If the hours are not edited, the calculation will still be calculated pro-rata as to the Buddy Rule Book.
Setting C
- When using AccuPay™, Calculate Target Hours Based on Employee's Working Days
This third option will not directly impact the basic hours, but rather the Target Hours in the Process Timesheets functionality. When enabled, the Target Hours will utilise a formula of weekly hours divided by the number of weekdays, rather than enforcing a Monday to Friday, 8-hour daily standard.
This will impact overtime calculations as well as Under Hour results.
Setting D
- Round .33 hours to 1/3 and .67 hours to 2/3
This setting is used to enable or disable the use of a recurring number during payroll calculation.
When Rounding is applied, any value after 0.33x and 0.67x will be ignored.
Difference between Pay Exact and Variable Hours
When employees work different hours daily / weekly / monthly, the option to set these employees on Variable Hours will need to be enabled on Buddy from the employee's Salary Details. Although with either option you can pay the same exact base hours, the difference comes when calculating leave entitlement, government bonuses and Social Security Contributions.
If the employee is set to fixed weekly hours in their Job & Salary, this information will be used for such calculations, regardless of the exact hours in the payslip. On the other hand, if the employee is set on Variable Hours, then the calculations will be pro-rata based on the worked and earned amounts.
Make sure to choose and select the best options for your payroll.
Payslip Printing Options
There are also additional settings that will impact printing. Check out our other article, Payslip Format: Standard, Compressed and Weekly Breakdown Summary, for more information and samples.