Hello Everyone. In this post, we will see the working of Bonus module in Saral PayPack.
Bonus is an additional income for the employee given by the employer once in a year. To know more on Bonus, visit our blog.
In Saral PayPack, the Bonus module is made available to compute the bonus amount.
To enable the bonus module, go to Company Details under Initial Settings, and enable Bonus.
Next, click on Bonus under Pre Salary Transactions.
Click on Add to create a new head of Bonus.
Note: The name given here will reflect in the payslip as a bonus component.
On creation of the Bonus head, expand the same and click on Definition to configure Bonus.
Now, define the Bonus component. For this, click on three-dot button next to the Formula field to define the bonus formula in Expression Editor. After defining the formula, select the same from the drop-down. If you wish to define the bonus value manually, enable Allow Manual Editing.
Note: To define the Bonus formula in Expression Editor, use only the CV component of the salary head.
Next, select the months for which the bonus is to be given. The duration can be a single month or many months. Also, select the month in which the bonus is being paid.
Note: Max Bonus field is to restrict the bonus amount given. E.g. If Max Bonus is given as 5000 on the calculation of the bonus; if the computed amount is 6500 then the bonus will be restricted to 5000.
As per the Bonus Act, if the employees with a minimum working period are to be considered, enable Consider employees with a minimum working days of and enter the minimum period.
Note: By default, the period will be taken as 30 days which can be changed if required.
Now, select if a Bonus is given with a monthly salary or as a separate component. If given with salary, select Dependent under Salary.
If given as a separate component select as Independent. If the amount is given in FFS, then select Independent and enable Include in FFS.
Select the applicable round off method to round off the bonus amount, under Round Off to.
To consider PT on Bonus, enable PT on Bonus, and select the respective options.
The options are as below:
- If the PT has to be considered for the bonus consideration months then select Respective Month. Else, if the PT has to be considered for the pay month then select Current Month.
- If PT is to be considered based on the previous year salary, select Consider Previous Year else select Do not Consider Previous Year. This is to be considered only when the bonus is given on previous year months.
Select the payment mode for Bonus from the drop-down under Mode of Payment.
If bonus computation percentage is not defined in the formula, then enable Calculate bonus _% on Salary amount (Formula).
I.e. If the formula is given as [CV(Basic)+CV(DA)], then enable the above option and given the percentage of calculation in the space provided. If the formula is given as [{CV(Basic)+CV(DA)}*.1], then do not enable the option as the percentage of calculation is already defined in the formula.
On doing all the above settings, click on Save and the definition will be ready for bonus computation.
This completes the first part of the Bonus Module in Saral PayPack. If you have any questions, feel free to let us know in the comment section below.