The employment contract: Salary
Handle everything that affects the amount on the payslip
Fill in the right amount for the employeeâs salary here
Monthly salary, hourly pay, salary exchange or perhaps a deduction for a gym card every month? You handle more or less everything that affects the amount on the payslip with the settings below.
How do you add or update a monthly salary?
New employee with monthly salary
Here you enter the personâs monthly salary and the date from which it applies. Even if the person works part time, the whole salary that applies at full time is to be filled in here. The settings in the schedule tab regulate the part-time share of the salary. Also state whether the salary is to be paid out in the current or the following month.
Update monthly salary
When you update the monthly salary, click the plus sign. A new row is then added, which makes it easy to see the salary development. Choose the date the salary starts to apply, and make sure to check the payslip once more to see that it is right.
Retroactive salary
For retroactive salary updates, the difference must be added manually to the next salary payment. Keep in mind that any deductions for absence need to be recalculated at the same time. Contact your Kleer consultant if you need help.
New employee with hourly pay
If the employee is to have hourly pay, this is stated on the Salary tab under the heading Hourly pay, together with whether vacation pay is to be paid out on an ongoing basis and with which percentage the vacation pay is to be calculated.
Update hourly pay
When you update hourly pay, click the plus sign and fill in the date and the new salary. This way you can follow the history of the employeeâs salary.
Vacation and hourly pay, what should you keep in mind?
If an employee is paid by the hour for longer than three months and is scheduled every week, the person should be entitled to paid vacation days. This means they are then entitled to be off and get paid. What they get paid is governed by what the person has earned in a pot, which is then spread out over the days from the vacation entitlement. The vacation pay is then not to be paid on an ongoing basis but is settled just like a monthly-paid employeeâs paid vacation, based on the settings under the vacation tab in the employment contract. Contact your Kleer consultant if you have questions or thoughts.
Salary exchange and salary supplement, how does it work?
The purpose of this box in the employment contract is to make the history clearer, and to let you choose whether the amounts are to affect the vacation liability.
Salary exchange
If an employee swaps part of their gross salary for a larger provision in, for example, a pension, this is called salary exchange. The person simply swaps gross salary for something else. You then need to reduce the personâs gross salary and contact the pension company to increase the provision for the employee.
The deduction from the salary is handled under the heading Salary exchange / Salary increment (enhanced rate) / Short time furlough in Kleer. You simply enter the gross amount the employee wants to exchange. Note: do not forget the minus sign in front, otherwise the amount is not deducted from the salary. The salary can be adjusted in the same month as the pension company sets aside the extra amount. Remember that it is not exactly the same amount that is deducted as is to be set aside for the pension. The calculation is based on the cost of the gross salary together with social security contributions being equal to the pension provision and the special payroll tax. The percentages are not quite the same for social security contributions and payroll tax, so you can therefore set aside a little more for the employeeâs pension and get the same costs in the company as if the gross salary had not been exchanged.
Salary supplement
If the employee is to get a supplement of some kind on the salary, this gross salary adjustment can be handled here.
How is variable pay handled in Kleer?
Is a bonus or commission to be paid out often to a user? Then you can fill this in under this tab. Choose between commission and bonus. The function itself generates a field in the salary report where an amount and description can be added, so that you can more easily enter a bonus or commission based on your calculations and simply hand the administration over to the employees, if that supports how you work.
Depending on how vacation is applied, you have two different options to choose between for commission.
Commission with vacation pay included (per employment contract)
Stated if the employees apply the percentage rule, or where the vacation pay is included in the commission amount.
Commission with automatic vacation pay markup
Stated if vacation pay is to be calculated on the commission automatically in Kleer and added to the salary on an ongoing basis.
What is the best way to handle adjustments to the monthly salary?
In the employment contract you can add adjustments that are to affect the salary during one or several coming periods. If it concerns a single month, the simplest way is to settle it directly in the salary report. The entry then only applies to that salary payment, and you can also preview the payslip straight away. If the salary has just gone out and something needs to be settled on the coming salary, it can be easier to set up the adjustment on the employment contract for the coming salary period and save. Then you can let it go for now, and it shows when you preview and approve the salary the following month.
What to keep in mind when payroll items are added for coming months
Deductions are always made with a minus sign in front. Regardless of what the item is called!
What is settled with payroll items on the employment contract?
Benefits and gross and net salary deductions of different kinds are handled here.
What do the columns below mean when you handle payroll items?
Period of validity
The period you choose will not be shown on the payslip. Instead the period controls how many payslips ahead it will affect. If you choose March to April, for example, the adjustment will affect March with the amount stated and then April with the same amount. The amount will therefore not be spread out and accrued!
Adjust amount to employment period?
If the box Adjust amount to employment period is ticked, the amount you have filled in for the payroll item is adjusted to the start or departure date automatically for the month concerned.