Salary Package Templates & Gross Up Packages
We're excited to announce our newest feature, Salary Package Templates & Gross Up Packages, which allows admins to customize employee salary packages with predefined breakdown templates. With this feature, users can create salary package templates and use them to tailor employee compensation by breaking down the main elements of the package, in addition to grossing up the employee's net salary.
TABLE OF CONTENTS
Salary Package Breakdown Templates
System Preferences → Financial Setup → Salary Package Templates
On the new Salary Package Templates page, admins can create multiple salary package breakdown templates. The page will include default elements with their respective percentages and amounts (Default amounts on the templates can be changed).
In this template, admins will be able to:
Add a Template name.
Define the basic salary percentage and add a Minimum and Maximum amount.
Activate or Deactivate the template. Inactive templates will not appear on the salary package templates list.
Add Recurring Transactions regardless of whether it has a minimum and maximum amount or a fixed amount.
Add Reserved Transactions regardless of whether it has a minimum and maximum amount or a fixed amount.
Choose the Remaining financial transaction type so the value can be calculated automatically when generating the salary package.
Reserved Financial Transaction Type
A Reserved Financial Transaction is an amount or a specific percentage that will be reserved from the employee's salary package net amount. This reserved transaction will only be included in the social insurance salary and will be excluded from gross up, salary calculation, and tax calculation. It will appear in the salary report only.
A new Financial Transaction Type will be added to the setup to allow users to create a reserved financial transaction amount. This transaction can be either a percentage or a fixed amount and will only be used in employee salary packages. It will not appear on any other financial transaction page.
Since the reserved transaction will be added to the employee package, it will follow the employees' package currency.
You can add a new reserved transaction type from the Incomes & Deductions page from the system preferences.
Use Salary Package Templates To Breakdown & Gross-Up Employee Package
A new option has been added to the employee profile to allow the admins to create a new salary package, gross up the amounts, and break it down using the saved salary package templates.
On the employee’s profile, in the Salary Package section, click the more button "⋮" then click, "Use Salary Package Templates". A new page with two stages will then appear, allowing the admins to enter the net salary amount and select the breakdown template they want to use for creating an employee package, and it will calculate the salary based on that.
The admins can select the template that they want to use from the related Template dropdown list, which will show only the active templates. Admins can then choose the effective date, insert the net/total salary of the employee, select the package type, insert the social insurance salary, and indicate whether or not the employee is taxable. They can also add any exemptions for the employee.
Under the option Package type, admins select whether the total salary amount should be distributed as a gross amount or as a net amount, after calculating the gross-up amount (if the "Gross up Salary" feature is active).
The user can update fixed-amount transactions only if they are recurring or reserved. They cannot change the percentages of percentage transactions, as these will be automatically calculated based on the selected template.
If the salary package type is "Net," updating the Social Insurance Salary will impact the calculation of Gross up, resulting in changes to the breakdown amounts.
To edit the breakdown templates, click on the "Templates Setup" button. This will redirect the admin user to the Salary Packages Template setup page.
To generate an employee's salary package, click on the "Create Salary Package" button.
Mass Uploading Employees Salary Package Using Templates
A new importer will be added to the existing salary package importers, and users can access it from the list of actions on the Employee Management page. Click "⋮", then select “Import Employees’ Salary Packages”.
Then select "Add New Salary Package Using Templates", and a popup window will appear.
Here, admins can select a salary package template, download the corresponding importing template for use, and then upload it as an attachment once it is done.
The "Download New Salary Packages Template" will affect the salary package template, as it relies on the elements of the current salary package template to generate the sheet.
✋Validations
The salary package breakdown amounts will be generated while respecting the minimum and maximum amount set in the templates.
The total salary amount should not be exceeded by the sum of all the salary package elements.
The salary package breakdown in the generated page cannot be updated by users. They can only do so by updating the template.
The remaining amount of the financial transaction value will be uneditable as it will be calculated automatically. The user will only have the ability to change the selected financial transaction type if necessary.
In the fixed recurring and reserved transactions, users will be able to update the amounts. However, in the basic salary and percentage financial transaction types, users can only update the percentages (The calculated amount fields will be uneditable).
Examples
Gross Package
Selecting the gross packages means that the amounts inserted are the original amounts before calculating taxes and social insurance.
Total Salary Amount (Monthly Gross Salary - A fixed variable): 10,000 SAR
Basic Salary (70%): 7,000 SAR
Recurring Income Transaction (Housing Allowance 20%): 2,000 SAR
Remaining Amount (Other Allowances - Fixed Recurring Transaction that will be automatically calculated): 1,000 SAR
Net Package
Selecting the net packages means that the amount inserted is the amount after calculating and deducting taxes and social insurance, and the system should calculate the gross-up amount and distribute it over the package elements.
Note: This package type will be available in Egypt only as it’s related to the Gross-Up feature.
Total Salary Amount (Monthly Net Salary - A fixed variable): 10,000 EGP
Social Insurance Salary: 9,000 EGP
Basic Salary before gross-up (50%): 5,000 EGP
Recurring Income Transaction before gross-up (Housing 30%): 3,000 EGP
Fixed Recurring Transaction (Mobile - A fixed variable): 100 EGP
Reserved Transaction (Incentives - A percentage variable 10%): 1,000 EGP
Remaining Amount Transaction (Other Allowances - A dynamic amount that will be calculated automatically before gross-up ): 900 EGP
Employee Social Insurance Contribution: 990 EGP
Tax: 1,079.52 EGP
Martyrs Contribution: 5.59 EGP
Calculated Gross-Up: 2,175.11 EGP
Grossed Up Total Salary: 12,175.11 EGP
Basic Salary after gross up (30%): 6,087.56 EGP
Recurring Income Transaction after gross up (Housing 30%): 3,652.53 EGP
Remaining Amount Transaction (Other Allowances - A dynamic amount that will be calculated automatically after gross up ): 1,117.51 EGP
Reserved Transaction (Incentives - A percentage variable 10%) after gross-up: 1,217.51 EGP
Net Salary: 10,000 EGP