Payroll Module Setup, Payroll tab

Payroll Module Setup, Payroll tab is under System Manager ⇒  HRPro Setup, Payroll Module Setup.

When Enable Payroll Module is turned off, Payroll Processing on the menu is not available.

Generate Payroll Batch

• When regenerating payroll batch, prevent overwriting amended records: When turned on, it ensures that any changes or amendments made to payroll records are not overwritten when a new payroll batch is generated. This means that any manual updates or corrections to payroll data will be preserved, preventing potential data loss or inaccuracies.

• Pay daily rate employees according to work schedule: When turned on, the number of days to pay defaults to the PAY DAYS that are defined in the  "Daily Salary Based on" (in the Prorated Salary / No Pay Rate Basis section), but if the Daily Salary Based on is set either Roster Normal Day or Roster Normal +Rest Days, it considers the Roster Table defined for the employee.  (This option can be overridden by the option "Pay Daily/Hourly Rate Employees according to work schedule" in Employee Class). 

• Pay hourly rate employees according to work schedule: When turned on, the number of hours to pay defaults to the working hours that the Roster Table/Global Working Hrs defined for the employee. (This option can be overridden by the option "Pay Daily/Hourly Rate Employees according to work schedule" in Employee Class). 

• Enable Auto Salary Small Adjustment: See What is "Enable Auto Salary Small Amount Adjustment"? for explanation.

• Show all previously terminated employees:  When enabled, all previously terminated employees can be selected from the employee dropdown list. If disabled, only the current month's active and terminated employees can be selected 

• Untaken Annual Leave Pay Daily Rate Formula, Payment in Lieu of Notice Daily Rate, and Payment in Lieu of Notice Monthly Rate: The formula can be set using the User Defined Formula. 

• Enable Untaken Annual Leave Pay on Final Payment: If it is not turned on, the Untaken Annual Leave Pay on Final Payment will be summed into the pay item Annual Leave Pay. 

• Untaken Annual Leave Pay Daily Rate Formula, Payment in Lieu of Notice Daily Rate: Examples are 

  • • [12MthsAverageDailyRate]   (Statutory)

    • [AnnualLeaveDailyWages]

    • [BasicSalary]/[DaysInMonth]

    • [BasicSalary]/[WorkdaysInMonth]

    • [BasicSalary]/30

(You can also define different Untaken Annual Leave Pay Daily Rate Formula in Employee Class).

• Payment in Lieu of Notice Daily Rate:  The Statutory requirement is [12MthsAverageDailyRate] 

• Payment in Lieu of Notice Monthly Rate: The Statutory requirement is [12MthsAverageMonthlyRate] 

• First three months of Holiday Pay: When it is set to No Wage and EAO2007 is turned on, the holiday pay rate becomes zero in the Payroll Record. However, if EAO2007 is not turned on, the no wage deduction is represented as a No Pay Leave deduction in the Payroll Record. (See How to Determine No Pay Leave Deduction?). (The First three months of Holiday Pay can also be defined in Employee Class, payroll tab).

• Payroll Considers Appointment History: If the option is turned on, the salary generated from the payroll batch will be based on the Employee Master, Appointment History and considered the start date (i.e. locate the particular salary and allowance as well as bonus based on the payroll period). If the option is turned off, the Payroll Batch Salary, Allowances, and Bonus will be based on the Basic Salary, Allowances, and Bonus in Employee Master, Salary Info tab.  (See What is "Payroll Considers Appointment History" in Payroll Module Setup)

• Employee Salary Payment Pay at Month-End Batch: When enabled (which is the default), the following pay items will be paid at Month-End Batch.  (This is usually the case for mid-month commission, OT pay, etc.)

  • • Salary 

    • Work Pay

    • Allowances

    • Bonus

    • Double Pay

    • Holiday Pay

    • Leave Pay

    • Sickness Allowance

    • Injury Leave Allowance

    • Maternity Leave Allowance

    • Deduction

    • No Pay Leave Deduction

When this option is enabled, salary calculations will be performed during the Month-End Generate Payroll Processing, ignoring the "Employee Salary Payment Pay at Mid-Month Batch" option in the Payroll Module Setup, Mid-Month Payroll tab. Therefore, it is important not to enable both options simultaneously. 

• Employee User-defined Payment Pay at Month-End Batch: When enabled (which is the default), the User-defined payment defined in Employee Master  (in Employee Master, Salary Info)  will be paid at Month-End Batch.

Payroll Amendment

• Allow protecting negative Gross Salary batch: when it is turned on, even if the batch contains negative gross salary payroll records are allowed to be protected. 

• Maximum Number of past periods to display in Payroll Amendment: This setting controls how many past periods are loaded into Payroll Amendment. If you have a large volume of Payroll Batches, limiting the period can improve the loading performance of the Payroll Batches in Payroll Amendment.

EAO2007 (a.k.a 713)

• Payroll Calculation is compliant with Employment (Amendment) Ordinance 2007: If this option is turned on, the daily rate for these Leave Pays (Holiday Pay, Annual Leave Pay, Sickness Allowance, Injury Leave Allowance, and Maternity Leave Pay) will be based on past 12-months Average Daily Wage (ADW) (unless the Use 12-month Average Wages except check-boxes are checked). 

• Use Current Month Average Wages if 12-month Average Wages is less than Current Month Average Wages: If this option is turned on, if the ADW is less than the current month's average wage, the system will use the ADW for these Leave Pays (Holiday Pay, Annual Leave Pay, Sickness Allowance, Injury Leave Allowance, and Maternity Leave Pay). This option applies to month rate employees only. 

• for Injury Leave Allowance Only: If the checkboxes Use Last Month Average Regarded Wages if 12-month Average Wages is less than Last Month Average Regarded Wages and for Injury Leave Allowance Only are both checked, the injury leave daily wage will be compliant with the definition of "monthly earnings" in A Concise Guide to the Employees’ Compensation Ordinance Chapter 6.

• OT treated as Regarded Wage Only when OT amount is not less than 20% of the regarded wage: If this option is turned on, then 

If (Total OT Pays of Last 12 Periods) is less than 20% of (Total Regarded Wages + OT Pays of Past 12 Periods), then 

      12-Month Average Daily Wage = (Total Regarded Wages of Past 12 Periods) / (Total Regarded Days of Past 12 Periods) 

otherwise 

      12-Month Average Daily Wage  = (Total Regarded Wages of Past 12 Periods + Total OT Pays of the Last 12 Periods) / (Total Regarded Days of Past 12 Periods)

(Assumed Full Pay Wage for OT Pays are turned on in Payroll Module Setup, Pay Type tab)

1. Enable Regarded Work Pay Day for Daily/Hourly Rate Employee: If this option is turned on, the system treats the value inputted to Regarded Work Pay Days as the Regarded Days of Work Pay. If this option is turned off, the system treats the value inputted to Regarded  Days as the Regarded Days of the period. (See Payroll Record Amendment, Salary tab)

2. Enable Regarded Work Pay for Daily/Hourly Rate Employee: If this option is turned on, the system allows input of the value of the Work Pay, which is treated as Regarded Wage for ADW. If this option is turned off, the system uses the Work Pays (e.g. Hourly Pay 1 to 6)  as the Regarded Wage for ADW. (See Payroll Record Amendment, Salary tab)

3. If No Pay Leave Deduction is zero, do not count No Pay Leave Days as Regarded Days: If this option is turned on, you can input No Pay Leave Days with zero No Pay Leave Deduction for Regarded Days adjustment usage. 

4. Use 12-Month Average Wage except ...: It is to let HPRro calculate the daily wages using the current month's daily wage rather than the past 12-month regarded daily wage. Please note that the Employment (Amendment) Ordinance 2007 stated that there are 8 Statutory Entitlements that shall be calculated based on the 12-month average wages. They are:

1. Holiday pay 

2. Annual leave pay 

3. Sickness allowance and related provisions 

4. Maternity leave pay and related provisions 

5. End of year payment 

6. Wages in lieu of notice.

Prorated Salary / No Pay Rate Basis

• Daily Salary includes: It iss to include how the current month's daily salary is calculated. It also determines whether the pay items are pro-rata or not at the joining period or termination period. 

• Daily Salary based on: Also known as Paid Days Definition. This is how the system determines the daily rate from the monthly rate. See "Daily Salary based on" Explanation and How to determine Daily Salary? 

• No Pay Leave Pay by: Usually, the No Pay Rate is the same as the Daily Salary. But you can define a No Pay Leave Rate Formula in Employee Class to override. If the Hourly Rate is selected, the hourly rate is determined by Daily working hours. See How to calculate Hourly Rate from Daily Rate?

Referral Bonus

Payroll Period

Payroll Period is able to change only when there is no Payroll Batches exists.

Decimal Place

The rounding method for Daily Rate, MPF Contributions and ORSO Contributions are the common Round Off (Half Round Up)

The rounding method for Net Salary is Round Up

Pay Record

• Enable Pay Record: When turned on, Pay Record is available.

• Pay Record Period: This is the period to cover the pay date in Pay Records of the corresponding payroll period.

• Offset: When defined, the Pay Record Period is the X days of the normal calendar period. e.g. offset is -10, The end date of the Pay Record Period is 10 days before the normal calendar month end.

(The Pay Record Period can change only when no Pay Records exist).

GL Voucher

• Enable GL Voucher: When turned on, Generate GL Voucher is available.

• Exclude MPF Contribution Voucher in GL Voucher: When turned on, only the payroll voucher will be displayed on the GL Voucher Excel File generated from Generate GL Voucher.

• Enable ERPro Voucher Import Format: When turned on, the GL Voucher file exported from Generate GL Voucher is compatible with ERPro import Format. (See ERPro Help Centre - Vouchers Import (nutech.com.hk) 🡕 )

• Voucher Difference Account for GL Voucher: This is the Account Code for the additional transaction if the GL Voucher is not balancing for some reason when generating GL Voucher.

Default

• Enable Multiple Cost Centres per Employee: When turned on, Multiple cost centres per Employee are available. 

• Allow generating autopay and MPF files only after the payroll batch is protected: This option ensures that autopay and Mandatory Provident Fund (MPF) files are generated only after the payroll batch has been finalized and protected. This means that no changes can be made to the payroll data once it's protected, ensuring the integrity and accuracy of the payroll and MPF contribution files.

• Include Zero Amount Payroll to Payroll Reports: When turned on, zero amount payroll records will be presented on all Payroll Reports. Otherwise, zero-amount payroll records will not be presented on all Payroll Reports. 

• Minimum Wage Hourly Rate: Starting from 2023/05/01, the Statutory  Minimum Wage Hourly Rate is $40.