Updated on 3/5/2019
How-To
Payroll for Salary Employees
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You can set the system to run payroll calculations automatically (for attendance and shift based employees, e.g. regular staff members) or manually (for employees whose work hours are not fixed, e.g. managers).

DO NOT run automatic and manual payroll calculations at the same time for the same employee as it may result in double wages accounting.

In iiko, we use the accrual method: wages, penalties, and bonuses are first accrued (aka calculated or earned) and then paid.

Automatic payroll (with attendance control). To have employee's wages accrued automatically, you need to assign a schedule and specify attendances. In this case, accruals are performed uniformly, and the amounts are given in reports as the accrual progresses, allowing you to view approximate labor costs at any time. Shift employees may have penalties charged automatically.

Manual payroll (no attendance control). You can opt out of keeping an attendance log and staff schedule, and accrue wages manually on a monthly or weekly basis. However, in this case, penalties will not be charged automatically. You can accrue wages manually or pay an employee that work according to any schedule, not necessarily "wages" schedule. In some countries, a salary is divided in two parts and paid twice a month. The first part is sometimes called an advance payment and the second ‒ fixed salary or just wage. Amounts payable can be specified for an employee and a position.

You can register an advance payment, wage accrual, and make final payroll calculations not only using an Employee’s Personal Report but also a Consolidated Wages Report. Use the latter to run these operations for a group of employees.

If you run payroll calculations manually, you can do it by clicking a single Accrue wages button in the Employee’s Personal Report, but you have to go the Consolidated Wages Report to make it for all employees at once. Each employee will have a corresponding accrual (debt) transaction created. The wage rate is populated according to an employee’s personal page.

An advance payment and remaining wage payable are paid similarly. For this purpose, reports have the following shortcut menu items (or Actions): Issue advance payment and Issue Money. An advance payment amount can be taken from the employee's wages settings or can be user-defined for each particular employee. For this, use the “From card” parameter. Likewise, when you run the Issue Money operation, use the “Amount due” parameter.

Setup

Remuneration

For the automatic payroll, use the “Average number of working hours in month” parameter. By default, this number is 170 per month. This value is specified in the Wages Records block. You can change it whether in the Corporation Settings of iikoChain under the “All subdivisions” mode or in the Outlet Settings on the Work time management tab.

In the position parameters, the Wages field is available only if you use the "By schedule" or "Wages" schedule. If the "Wages" schedule is set, then the Time Rate field will be unavailable and show an employee's wage divided by an average number of labor hours per month.

Now fixed amounts that are paid to an employee can be specified on their personal page and in the position settings. For this, use the Wages and Advance Payment fields.

Paying Off Outstanding Amount

To pay off any arrears in wages, you should set up a model withdrawal: The chef account is an account used to hand out money (e.g. “Safe” or “Money to be accounted for”) and the "Current Settlements with Employees” Corr. Account.

Consolidated Wages Report

The Consolidated Wages Report displays information specified on the employee’s personal page along with actual accrued amounts. The "Current Settlements with Employees" account data (HOURPAY, ACCWGS, BONUS, PERC, ADVPMNT, PENALTY, CRED, DA, WDA, MANUAL transactions) is used to run this report.

Actual accrued amounts shown in the Consolidated Wages Report may not match in case of a fixed shift rate. If an employee works according to a schedule and is assigned a fixed rate shift (the Use fixed shift rate item is checked in the shift type settings and the Shift Rate field shows some value), then, at the time of the payroll calculation, the system will use this rate (instead of the rate specified on the employee’s page). If an employee works flexible hours, then, at the time of the payroll calculation, the system would use the rate specified in the Time Rate field of the employee’s page.


Consolidated Wages Report in iikoChain under the “All Subdivisions” mode

Consolidated Wages Report in iikoRMS

The report shows the following for each employee:

ColumnDescription
EmployeeLogin value on employee’s page. You can open an employee’s page by double-clicking on this field (or using the shortcut menu).
Employee IDEmployee ID/Code value in employee’s page.
PositionEmployee’s position Double-click on this field to open a position’s page (or use the shortcut menu).
Opening balanceBalance of the Current Settlements with Employees account at the beginning of the reporting period.
WagesWages value on employee’s page. If the value changed during the reporting period, the system gives the value used at the beginning of the period.
Advance paymentAdvance Payment value on employee’s page. If the value changed during the reporting period, the system gives the value used at the beginning of the period.
Worked hoursTotal number of hours registered in the Attendance Log over the reporting period.
Time rateTime Rate value on employee’s page. If the value changed during the period, the system shows the value used at the beginning of the period.
Sales (menu items)Total proceeds from items added to orders. No matter who created the orders. Only closed orders are registered
Sales (orders)Amount accrued per each order opened by an employee within a shift. No matter who added items and closed an order.
Incentive bonusTotal bonus points earned by an employee under incentive programs (amount of INCPMNT transactions).
AccruedAmount of wages earned by an employee over the reporting period (amount of HOURPAY and ACCWGS transactions in the employee's account).
ShortageShortage amount encountered upon accepting a till shift (CASHSHORT transactions in the “Current settlements with employees” account)
Deductions

Total amount of penalties charged over the reporting period (amount of PENALTY transactions in the employee's account)

Amount of expenditure invoices where an employee is specified as a buyer (REVEXPINV transactions)

Amount paid for services provided to an employee specified as a buyer (REVEXPINV transactions)

Oth. accrualsTotal amount of bonus earned by an employee over the reporting period (amount of BONUS transactions in the employee's account).
Food/UnclsTableTotal amount of CRED transactions in the employee's account over the reporting period (food in credit (on account), unclosed tables).
Other calculations

Manual (MANUAL type) transactions in the employee's account over the period.

If according to the cash register settings a cashier is accountable for the prepayment amount, this item includes order prepayment amounts (PREPAY transactions in the “Current settlements with employees” account).

TotalTotal amount: Incentive bonus + Accrued + Shortage + Deductions + Oth. accruals + Food/UnclsTable + Other calculations. Negative values have a minus sign in the formula.
Issued advance paymentsAmount of ADVPMNT transactions in the employee's account over the reporting period
Total paymentsAmount of WDA transactions in the employee's account over the reporting period
Due:Employee's total salary: Total > Advance payments > Total payments
Closing balanceEmployee's account balance at the end date of the report

Payroll for Salary Employees

Automatic Wages Records

To register salary employees:

  1. Specify an average number of labor hours per month. For this, go to Administration > Outlet Settings > Work time management tab > Wages Records block. 170 labor hours are specified in this field by default.
  2. Set up positions for salary employees and specify the "wages" work schedule. The Time Rate field shows a value equal to the wages divided by an average number of work hours per month and is unavailable.
  3. Set up an employee’s remuneration in their record on the Payment tab. Use the Wages and Advance Payment fields to specify fixed amounts to be handed out to an employee.
  4. If you don’t need to register penalties for an early clock-out or late clock-in, make these items inactive.
  5. Set up model shifts that will be used to schedule salary employees' hours.
  6. Assign the schedule to an employee. The calculation will include if they contain at least one attendance (irrespective of its duration). If there was no attendance during the shift, this shift is not credited.
  7. Create attendances with the required adjustment coefficients that will confirm employee's shifts (if a coefficient is 100%, a shift pay will be credited in full, if 50% – only in half, if 0%, e.g., no show, the payment will not be accrued).

To streamline registration of sick leaves, vacations, and other day offs (paid or unpaid), you can set the system to create non-working attendances automatically.

By default, iiko implements the “by schedule” method to run payroll calculations (allowing you to view approximate labor costs at any time). If the above conditions are met, you can calculate the salary. For this:

  1. Open a Consolidated Wages Report or an Employee’s Personal Report.
  2. Click Actions > Recalculate wages. In the pop-up window, specify a recalculation period and click Recalculate.
Attention! When running payroll calculations, the period must be a calendar month (beginning from the first day of the month and ending on the first day of the next month). If you specify any other periods, this may result in incorrect calculations.

The system will generate a new debt to employees according to the wages calculation algorithm.

If you need to go back to the “by schedule" debt calculation, restart the wages recalculation without checking the Recalculate wages item.

The salary is calculated according to the formula:

(Shift duration - unpaid time) x Time rate x Attendance adjustment coefficient

Sick leaves, vacations, and other paid but off hours (confirmed by attendances with the corresponding adjustment coefficients) are included in the calculation just like work hours. Overtime is not included in the “by wages” calculation.

To register overtime, you need to create special shifts with the “Overtime” attribute. The “by schedule” method is used to run calculations for such shifts (attendances and shifts must overlap). Overtime shifts confirmed by attendances are paid on top of wages.

Example of Wages Records

Let’s take a look at the wages records of a waiter as an example.

To set up his or her monthly pay, follow this:

  1. Open the Waiter’s position page, set the work schedule to Wages, and specify the fixed wage: €750 and the advance payment: €750.


  1. Assign Lily Walker to this role. A time rate of €5.35/hour will be set on the Payment tab of her employee’s page (fixed wage of €750 divided by 170). Specify the date starting from which this rate shall be used in the employee’s payroll calculation (e.g. from the beginning of February 2016).


  1. Set up model shifts for salary employees.

The following shifts may be used for this: WAGE_8, WAGE_SICK_LEAVE, and WAGE_VACATION. Do not use such shifts for hourly employees. They must have their own shifts configured.

Set up labor days and vacation:

  1. Set up a 5-day schedule: one work shift and the rest is “vacation”.
  2. Create work attendances with a 100% coefficient. For this, use the Create attendance shortcut menu item in the Attendance Log.
  3. Open personal wages report. It shows an amount earned by an employee for the hours worked per each shift: €5.35 per hour multiplied by 8 hours = €42.8.
  4. Click Actions > Recalculate wages. In the pop-up window, specify the recalculation period (beginning from the first day of the month and the ending on the first day of the next month) and check Recalculate wages. Click Recalculate. The amounts will be recalculated according to the payroll calculation algorithm.


Once done, Lily Walker will have the following HOURPAY wages payable transactions created: D (Wages) and C (Current settlements with employees).

Sick leaves are registered similarly. Use the dedicated shift: WAGE_SICK_LEAVE. Specify a special payment coefficient for such a shift ‒ 0%. So that such shifts will not be given in the labor costs.

Let’s put a WAGE_SICK_LEAVE shift on the schedule. Suppose an employee took a sick day on Friday. A corresponding attendance will be automatically registered in the attendance log.

In the Personal report, you will see a registered shift (attendance), but the sick leave doesn’t affect the salary.

To register employee’s weekend hours and overtime, he or she must be assigned a special shift: EXTRA_SHIFT.

To register 1 hour overtime, assign an employee an extra shift for this day (EXTRA_SHIFT) and adjust the shift boundaries accordingly. Then you have to create a corresponding attendance manually in the Attendance Log. Thereafter, in the personal report, you will see that 1 hour is credited and a time rate increased for this day.


Manual Calculation

For the employees without attendance control (e.g. managers), the payroll calculation and salary payment are manual operations. To do it quickly for the entire staff, go to the Consolidated wages report.

Payroll Calculation

You can run the payroll calculation for a group of employees from the Consolidated wages report. For this:

  1. Open the Consolidated Wages Report. It shows amounts used to calculate wages for all employees in the outlet. The “last month” reporting period is set by default, and you can see employees’ details who have some payments accrued in this reporting period. Employees are grouped by roles. If the Show all employees field is not checked, the information is displayed only for those employees who have at least one payment in the reporting period.


  1. If you work in iikoChain, for instance, in the “All subdivisions” mode, specify which subdivisions you want the report to be created for in the Subdivision filter field and click Update.


  1. Select employees you want to accrue wages to.
    • By default, the report shows only those employees whose details are available. To make the report show all the employees bound to the selected outlets, check the Show all employees item and click Update.
    • Select one or more employees using the Ctrl or Shift keys.
  2. Click Actions > Accrue wages. A new window shows a list of employees you selected for the payroll. The Wages field shows an amount due per each employee. This value is taken from the employee’s payment settings: the Wages field on the Payment tab of the employee’s page.
  3. Specify the date of the operation (current date is set by default) and click OK. If you made a mistake when selecting employees, click Cancel and create the list again.

The Subdivision field shows an outlet to which these employees belong. If employees work in more than one outlet of a chain, you have to specify the outlets where such employees earned their wages (while in the “All subdivisions” mode of iikoChain).


  1. Once done, each employee will have an ACCWGS wages payable transaction created (D (Wages) and C (Current settlements with employees)).


  1. To view a detailed information on the accrued amounts, open a personal report for the selected employee. The report opens if you double-click on the employee’s row in any of the amount column.
  1. From an employee’s personal report, you can go to a detailed report. It shows the information on current settlements with a selected employee. If you double-click on the amount cell, you will be taken to a window displaying cash movements in the employee's account for the selected day only.


Hand Out Advance Payment

To pay an advance (wage) to a group of employees, follow this:

  1. Open a consolidated wages report and select employees you want to pay.
  2. Click Actions and select Issue advance payment... A new window shows a list of employees you have selected for the advance payment. By default, this value is taken from the employee’s payment settings: the Advance payment field on the Payment tab of the employee’s page. To change it, enter the required value in the Due and payable field.


  1. Specify the operation date (current date is set by default).
  2. If all the employees belong to one and the same outlet, it will be set automatically. If employees work in more than one outlet of the chain, you have to specify an outlet where the advance payment will be handed out (while in the “All subdivisions” mode of iikoChain).
  3. Specify an account to hand out the money from, for instance, “Money, cash”. You may choose any account in the Assets, Liabilities or Capital sections. If an account has a required contractor, it must be filled in.
  4. To have the report reflect cash movements resulting from this operation, specify a cash flow article (CF article).
  5. You can enter additional information on this operation in the Comment field.
  6. If a cash payment order needs to be printed for this operation, check the corresponding field. When saving this operation, a preview window with the created document will open from which the document can be printed or exported to MS Excel format.
  7. Click OK. If you made a mistake when selecting employees, click Cancel and create the list again.
  8. Once the operation is complete, an ADVPMNT transaction (D (Current settlements with employees), C (From account)) will be registered for each employee.

Paying Off Outstanding Wages

You can also perform this operation in iikoFront.

You can run the final payroll calculation for a group of employees from the Consolidated wages report. For this:

  1. Open a Consolidated wages report and select employees you want to pay.
  2. Click Actions and select Issue money. A pop-up window shows a list of employees you have selected for the payment.
  3. In the Issue Type field, specify the purpose of payment (the value is selected from the list of withdrawal types set up in the system).
  4. Settings specified for a selected withdrawal type (Issue type field) will be automatically inserted in the From account, Corr. Account and CF Article (cash flow article) fields. You can change these values, if necessary. You may choose any account in the Assets, Liabilities or Capital sections. If an account has a required contractor, it must be filled in.
  5. By default, the entire positive amount outstanding as of the report date will be handed out to an employee. This amount is given in the Due field of the report. In the Payout form, this amount is given for each employee in the Amount column.
  6. Specify the operation date (current date is set by default).
  7. If all the employees belong to one and the same outlet, it will be set automatically. If employees work in more than one outlet of the chain, you have to specify an outlet where the payment is made (while in the “All subdivisions” mode of iikoChain).
  8. To have the report reflect cash movements resulting from this operation, specify a cash flow article (CF article).
  9. You can enter additional information on this operation in the Comment field.
  10. If a cash payment order needs to be printed for this operation, check the corresponding field. When saving this operation, a preview window with the created document will open from which the document can be printed or exported to MS Excel format.
  11. Click OK. If you made a mistake when selecting employees, click Cancel and create the list again.
  12. Once the operation is complete, a WDA transaction (D (Current settlements with employees), C (From account)) will be registered for each employee. If an outstanding amount is zero or negative, no transactions will be registered.

Example Payroll for Salary Employees

Let’s consider an example settlement with salary employees whose work hours are not fixed (no attendance control).

Suppose a director was handed accountable money to pay his/her employees. In this case, follow this:

  1. Hand out accountable cash to the director John Brown from the cash register (from the “Money, cash” account), so that he would pay employees (€10,000).


  1. A WDA transaction will be created (D (“Money to be accounted for”) С (From account – “Money, cash”)).


  1. The director pays off outstanding wages partially (€500 to each employee). For this, he clicks Actions > Issue money in the Consolidated Wages Report.


  1. A WDA transaction (D (Current settlements with employees), C (From account ‒ “Money to be accounted for”)) will be created for each employee. €1,500 will be debited from the director’s account.