Pay Run Settings
Configure when and how pay runs should be created
Period and Basic Config
Recurring Pay Run Name
In this field, provide a descriptive name for your recurring pay run. This name should help you easily identify the group of employees associated with it. For instance, you can name it "Fortnightly Packhouse" or "Permanent Monthly".
Recurring Period
Select the "Start Date" for the first pay run within this recurring pay run. This is the initial date from which the pay runs will begin. The start date of the pay run can be changed once the pay run is activated.
Next, select the period.
Weekly: Pay runs that will end once a calendar week
Fortnightly: Pay runs that will end every second calendar week
Monthly: Pay runs that will end every calendar month
Once a recurring pay run is activated, the period (monthly, fortnightly, weekly) cannot be altered. While the period remains fixed, you have some flexibility in adjusting the end date, with certain constraints to ensure the integrity of the pay period.
Monthly: The end date can be shifted to any day in the month that follows the start date of the pay run.
Fortnightly: You can change the end date to any day within the week that falls two calendar weeks after the start date.
Weekly: The end date can be adjusted to any day in the week immediately following the start date.
Why only Monthly, Fortnightly, or Weekly?
When configuring your payrun period, you can only choose one of the following options, i.e., monthly, fortnightly, or weekly. This constraint ensures that employees are paid on a regular and expected period.
Furthermore, when generating tax certificates for employees, the number of pay periods is used to reconcile their earnings. Consistency in the chosen pay period is crucial to avoid issues when submitting filings to SARS (South African Revenue Service).
It's important to note that while you can change the end date of a pay run, it must not affect the selected period. For instance, the end date of a monthly pay run can be changed to any date within the month, as long as you still pay within the calendar month.
Company
Specify the company to which this pay run belongs. It's essential to ensure that this is accurately set, as all employees linked to this pay run will be included in the monthly filing reports of the selected company.
Leave Policy Configuration
In Agrigistics, leave accrual settings are an integral part of each recurring pay run configuration. Employees linked to a recurring pay run will accrue leave based on the configuration set for that pay run. It’s essential to group employees in pay runs according to their payment structure.
Average working hours per day:
For employees working 9 hours per day, 5 days a week (Monday to Friday) - Average working hours per day: 9 hours.
For employees working 8 hours per day during the week and 5 hours on a Saturday - Average working hours per day: 8 hours.
Select pay run templates: The selected pay run templates' quantities will be used as the accumulation hours and divided by the accumulation factor. The pay run templates should include all ordinary working hours that must contribute to annual and sick leave accrual.
OR Provide fixed number of hours for leave accrual: Provide a fixed number that will be used for leave accrual each period. Use this option for fixed wage employees that accrue fixed amount of leave each period.
Set Cycle Start Date: This setting determines the start date of an employee's annual leave cycle.
Appointment Date (Default): An employee's annual leave cycle commences on their appointment date and resets annually on that same date.
Specify Start Date: Select a specific calendar day for all employees' annual leave cycles to begin. The leave cycles will then reset annually on this chosen date.
Annual Leave Accumulation Factor: Annual leave accrues at a default rate of one hour of leave for every 17 hours worked. Employees accumulate leave based on clocked hours (for selected pay run templates) or fixed hours as specified in the "Leave Accrual" section.
Leave Expiration: By default, annual leave balances do not expire at the start of a new leave cycle. Select the checkbox to enable annual leave expiry.
Carry-Over Days: Specify the maximum number of annual leave days that can be carried over to the subsequent leave cycle. If an employee's leave balance exceeds this specified amount, the excess days will expire when their new leave cycle begins.
Carried-Over Leave Expiry: Define the number of calendar months for which carried-over leave remains valid. When an employee takes annual leave during a period where they have a carried-over balance, the leave taken will first be deducted from this carried-over amount. Any unused carried-over leave remaining after the specified number of months will expire.
Quantity Hours or Days: In Agrigistics leave always accrue per hour, but when performing a pay out you can specify to convert the number of hours to days by dividing the total leave hours by the average working hours provided in step 2.
Leave payout rate: When performing a leave pay out, you need to specify which rate must be used to calculate the leave payout amount. If you specify hours in the previous step, ensure that the rate selected here is an hourly rate and not a daily rate.
Sick Leave Configuration
Regular Working Days Per Week: In accordance with the Basic Conditions of Employment Act (BCEA), employees are entitled to paid sick leave equivalent to the number of days they would typically work in a six-week period, within a 36-month sick leave cycle. For example, an employee who works six days per week is entitled to 36 days of sick leave over a 36-month cycle. The system calculates the total sick leave entitlement based on the number of working days specified here for a six-week period.
Family Responsibility Leave
Leave Entitlement: By default, employees are entitled to 3 days of family responsibility leave per 12-month cycle, commencing from their appointment date. This entitlement can be increased. To ensure compliance with the BCEA, the minimum configurable amount is 3 days.
Select Employees
Choose the employees who will be included in this recurring pay run. Once the pay run is finalised, these employees will be automatically included in each subsequent period. You can remove employees later if necessary.
Select Recurring Pay Run Templates
Choose the standard earnings, deductions, and benefits that will apply to the selected employees. The templates chosen will become the default settings for this pay run, ensuring any future employees added to this pay run inherit these configurations, enabling uniform management of all employees included in the pay run.
Edit Default Config
The default pay run template configuration is crucial as it determines the templates that will automatically apply to new employees added to the pay run, with all default templates being set as recurring.
When Modifying the Default Configuration for Existing Employees:
Adding a Pay Run Template: If you add a new template to the default configuration, it will be automatically applied to all employees who currently do not have this specific template. Employees who already have the template will not be affected. Additionally, if any employee has overridden values for a template, those customisations will remain intact.
Removing a Pay Run Template: When a template is removed from the default configuration, it will be deleted from the pay run of all employees who have that template applied.
This approach ensures that updates to the default configuration are seamlessly integrated with existing employee setups, while also respecting individual customisations.
ETI Config
The ETI calculation is heavily based on how many hours have been worked for the month. We give you the flexibility to manage this based on your payroll components.
ETI Config for employees that are hourly paid:
Navigate to Payroll.
Select the Pay Run you want to configure.
Click on Pay run settings.
Click on ETI Config.
Click on the pencil.
Click on the drop down and select Benefit inputs.
Now click on the + next to 'No pay run templates linked.
You can now select the templates that it should look at to calculate the 160 hours (Example: Hours worked etc.).
Once you have made your selection you can click on Save.
ETI Config for employees that are salary paid:
Navigate to Payroll.
Select the Pay Run you want to configure.
Click on Pay run settings.
Click on ETI Config.
Click on the pencil.
Click on the drop down and select Fixed hours.
Enter Fixed hours as 160.
Click op Save.
OID Config
Create
Once you've selected the employees and determined the pay run templates, simply click on "Create" to establish your pay run.
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