Payroll Processing

SOPHIOS automates payroll processing with salary calculations, multi-level approvals, and automatic pay slip generation.

Payroll Overview

Workflow Stages

Payroll entries move through 6 stages:

Creating Payroll Entries

Daily Rate = Base Salary / 30
Working Days = Days in period - Unpaid Days
Base Amount = Daily Rate × Working Days

Approval Workflow

Submission Process

Bulk Payroll Operations

Creating Multiple Payrolls

Quick Create for All Employees:

1. Click “Bulk Create”
2. Select pay period (start/end dates)
3. Choose employees (or select all)
4. System creates draft entries for all
5. Review and adjust individually
6. Submit batch for approval

Benefits:

• Create 20+ payrolls in seconds
• Consistent pay periods
• Batch processing
• Less data entry

Bulk Approval

Approve multiple payrolls at once:

1. Filter payrolls by “Pending Approval”
2. Select payrolls to approve
3. Click “Approve Selected”
4. Confirm bulk approval
5. All selected payrolls approved

Bulk Rejection:

• Same process
• Add rejection reason (required)
• Payrolls return to draft

Salary Calculation Details

Base Salary Calculation

Monthly Salary:

Daily Rate = Base Monthly Salary / 30
Net Base = Daily Rate × (30 - Unpaid Days)

Example:

• Base Salary: €5,000/month
• Unpaid Days: 3 days
• Daily Rate: €5,000 / 30 = €166.67
• Net Base: €166.67 × 27 = €4,500

Annual Salary:

Monthly Equivalent = Annual Salary / 12
Daily Rate = Monthly Equivalent / 30
Net Base = Daily Rate × Working Days

Adjustment Calculations

Overtime:

Overtime Pay = Hourly Rate × Overtime Hours × Multiplier
Hourly Rate = (Monthly Salary / 30) / 8
Standard Multiplier = 1.5x (time and a half)

Bonuses:

• Fixed amount or percentage
• Can be taxable or non-taxable
• Added to gross salary

Deductions:

• Subtracted from gross amount
• Can be pre-tax or post-tax
• Support percentage or fixed amount

Final Formula:

Gross Salary = Base - Unpaid Days + Additions
Net Salary = Gross Salary - Deductions

Pay Slips

Automatic Generation

When payroll marked as “Paid”:

1. Pay slip PDF automatically generated
2. Includes:
   • Employee details
   • Pay period
   • Base salary breakdown
   • All adjustments listed
   • Gross and net amounts
   • Payment date
   • Employer details
3. Stored in system
4. Available for download/email

Pay Slip Content

Header:

• Company name and logo
• Employee name and number
• Pay period dates
• Payment date

Earnings:

• Base salary
• Overtime
• Bonuses
• Allowances
• Gross Total

Deductions:

• Taxes
• Insurance
• Advances
• Other deductions
• Total Deductions

Net Pay:

• Gross - Deductions
• Payment method
• Bank account (last 4 digits)

Footer:

• Year-to-date totals
• Tax information
• Notes and messages

Distribution

Automatic Options:

• Email to employee automatically
• Download and print
• Secure employee portal access
• Bulk email all employees

Payroll Reports

Available Reports

Payroll Dashboard

Key Metrics:

• Total payroll this month
• Pending approvals count
• Unpaid payrolls value
• Average salary by department
• Payroll vs. budget

Charts:

• Monthly payroll trends
• Department cost breakdown
• Overtime analysis
• Adjustment types distribution

Payroll Calendar

Payment Schedule

Set up recurring payment schedule:

Configuration:

• Frequency - Monthly, Bi-weekly, Weekly
• Payment Day - 1st, 15th, last day of month, etc.
• Cut-off Date - When payroll must be submitted
• Approval Deadline - When approvals must be complete

Automatic Reminders:

• 7 days before cut-off
• 3 days before cut-off
• Day before payment date
• Overdue notifications

Permissions & Access

Role-Based Payroll Permissions

⚠️ = Can delete only Draft status

Employee Self-Service

Employees can:

• View their own pay slips
• Download payment history
• See YTD totals
• Cannot see other employees’ payroll

Access via:

• Secure employee portal
• Email notifications
• Mobile app (if available)

CSV Import/Export

Importing Payroll Data

Import Use Cases:

• Migrate from other systems
• Bulk upload adjustments
• Import from external payroll calculations

Process:

1. Download CSV template
2. Fill with payroll data
3. Upload CSV file
4. Validate and review
5. Import creates draft payrolls

Template Fields:

• Employee Number/Email
• Pay Period Start/End
• Base Salary
• Unpaid Days
• Adjustments (JSON or multiple columns)
• Payment Date
• Notes

Exporting Payroll Data

Export Options:

• All payrolls (with date filter)
• By status (Approved, Paid, etc.)
• By department
• By employee
• Selected payrolls only

Exported Data:

• Employee details
• Pay period
• Gross and net amounts
• All adjustments
• Status and dates
• Approver information

Export Formats:

• CSV - For Excel/Google Sheets
• PDF - Formatted reports
• JSON - For API integration

Best Practices

Monthly Payroll Routine

Week 1 (Start of Month):

1. Review previous month’s final payrolls
2. Update any salary changes
3. Check for new hires or terminations
4. Verify bank account details

Week 2-3 (Mid-Month):

1. Track attendance and unpaid days
2. Collect overtime reports
3. Gather bonus/adjustment information
4. Communicate with department heads

Week 4 (End of Month):

1. Create draft payrolls for all employees
2. Enter unpaid days
3. Add adjustments
4. Review calculations
5. Submit for approval

Week 5 (Payment):

1. Process approvals
2. Make payments
3. Mark as paid in system
4. Distribute pay slips
5. Handle any issues

Accuracy Tips

1. Double-Check Unpaid Days - Most common error
2. Verify Adjustments - Confirm amounts with managers
3. Review Net Salary - Compare to previous months
4. Check Banking Details - Especially for new employees
5. Test Calculations - Spot-check a few manually
6. Use Drafts - Don’t submit until verified

Compliance

1. Maintain Records - Keep all payroll records 7+ years
2. Document Changes - Log all salary adjustments
3. Approval Trail - Ensure all approved before payment
4. Timely Payment - Never miss payment dates
5. Tax Compliance - Proper tax calculations and withholdings
6. Data Security - Restrict payroll access

Troubleshooting

Payroll Calculation Issues

Problem: Net salary seems incorrect

Solutions:

• Verify unpaid days count
• Check all adjustments are correct sign (+/−)
• Confirm base salary is current
• Recalculate manually: (Salary/30) × (30-Unpaid) + Additions - Deductions

Problem: Cannot submit payroll

Solutions:

• Check all required fields filled
• Verify pay period doesn’t overlap existing paid payroll
• Confirm you have submission permissions
• Check employee status is active

Approval Issues

Problem: Approver cannot approve

Solutions:

• Verify approver has correct role (Owner/Admin)
• Check payroll status is “Pending Approval”
• Confirm approver has access to the asset
• Check for system permissions issues

Problem: Payroll stuck in “Pending Approval”

Solutions:

• Contact approver directly
• Check approval notifications sent
• Verify approver account is active
• Owner can override if needed

Payment Issues

Problem: Cannot mark as paid

Solutions:

• Confirm payroll is “Approved” status
• Verify you have payment permissions
• Check payment date is valid
• Ensure no system errors

FAQ

Can I edit a submitted payroll?

No. Once submitted, payrolls are read-only. If changes needed:

1. Reject the payroll (returns to draft)
2. Make edits
3. Resubmit for approval

What if I forgot to add an adjustment?

If still in draft: Edit and add adjustment If submitted: Reject, edit, resubmit If paid: Create correction payroll for next period

How do I handle mid-month salary changes?

Create two payroll entries:

1. First period at old salary
2. Second period at new salary Or: Prorate in single payroll with adjustment

Can employees see each other’s salaries?

No. Employees only see their own payroll data. Access strictly controlled by permissions.

How long are payroll records kept?

Indefinitely in the system. Recommended to export and archive annually for compliance (7+ years retention).

What happens to payroll when an employee is terminated?

Create final payroll:

• End date = termination date
• Include final adjustments
• Add unused vacation payout
• Process as normal