Payroll Preparation
The employee's salary is the amount that the employee receives for the monthly work performed. The salary consists of a fixed part (basic salary, allowances for food and transport and other benefits) and a variable part (rewards, payment based on performance, etc.).
PANTHEON enables simple payroll calculation and one-time data entry, after the company sets up and edits the settings for the first billing.
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HINT
For more information about settings for the first billing, see the chapter Payroll Preparation.
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The following case presents how to calculate payroll in the Tecta company.
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CASE SUMMARY
Heather Human, the person responsible in the Tecta company wants to create a payroll preparation for employee William Worker for time period 2022-04. William is a permanent, full-time worker in the Manufacturing department.
The preparation is done as follows:
- Employee Files
- Setting Registers
- Preparing a Salary Calculation
- Calculating a Salary
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1. Employee Files
An employee's Employee File is the basis for salary calculation. The File contains all important data about an employee.
The person responsible selects the menu Personnel | Employee Files.
Using the navigation keys, the person responsible finds the employee in the taskbar, to check whether all data is entered.
In this case, the person responsible finds employee William Worker.
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HINT
The Employee Files mandatory fields are marked with red. If data is not entered, the program is not going to create a correct calculation, if a calculation could be created at all.
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The Employee File window opens.
1.1. General
Automatically, the Employee File opens on the General panel.
The person responsible checks whether all mandatory data is entered:
- First name
- Last name
- Nat. ID No. and
- Tax No.
If all data is entered, the person responsible continues to the next panel.
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HINT
Coloring of mandatory fields is set in Administration Panel | Personnel | Payroll, under Miscellaneous, on the Calculation Type tab.
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1.2. Employment Record
The person responsible goes to the Employment Record panel where the employee's length of service is entered.
In this case, the person responsible sees that the employee has data about employment outside and in the company entered into the Employment Record.
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HINT
For more information about Employment Records, see the chapter Employment Record.
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In the lower part of the window, the Length of Service is automatically calculated for the employee, according to variables.
Variables (shown in the image below) are used in formulas to calculate passed work, leave, earnings types, etc.
The person responsible continues to the Position/Salary panel, Salary Parameters sub-panel.
1.3. Salary Parameters
The person responsible goes to the Salary Parameters panel. Here, the employee's entire fluctuation within the company is entered.
For calculating salary, the data in the following fields are key:
In this case, the employee is employed in Manufacturing permanently and full-time.
The Insurance Grounds are set as 001 - at a company, institute, other organization or employer; at branches of foreign business entities; elected or appointed holders of public or social office. in the Insurance Grounds field.
In the Commute to Work field, the employee's commute route is selected.
In this case, William is only driving through Ljubljana, therefore William gets reimbursed for city passenger transport, marked by the value LJ.
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WARNING
If the employee has a vehicle benefit calculated, this must be entered in the Vehicles panel.
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The Formula (gross) field is filled in with the formula that runs the salary amount control.
A salary higher than the minimum is allowed. The minimum wage amount paid must be at least the minimum wage.
The person responsible continues to the next panel.
1.4. Custom Fields
The Custom Fields panel is filled in with data entered in the Employment Record and Salary Parameters panels.
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WARNING
The Custom Fields names are edited in the Administration Panel | Personnel | Payroll | Custom Fields.
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It is important that the person responsible fills in the Gross Salary field here.
In this case, the employee's gross salary amount is 2,198.84 EUR.
Information for reimbursed sick leave benefits must be entered in the following fields:
- Basis for Sick Pay
- Base Year and
- Hours in Base Year.
And data for sick leave up to 30 days in the Gross Hourly Rate field.
As shown in the image below, the person responsible has entered all data for the selected employee.
In the Length of Service Bonus field, a calculated percentage the employee is entitled to based on length of service is entered. In this case, William is entitled to 11% of the gross salary.
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HINT
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The person responsible continues by checking the mandatory fields.
1.5. Calculation Types
Next, the person responsible checks whether the employee has the Salary Calculation Type set.
The person responsible goes to the Pay Slips panel and sets which calculation type to appear in for every employee separately. If this data is not entered, the calculation is not going to include the employee.
In this case, the employee is included in P000 - Regular Calculation and P100 - Annual leave bonus.
The pay slip Document Type is set in the Document Types - Payroll Register.
The Period column here is automatically filled in with the date the employee started working in the company.
On the right side of the window, the person responsible has set the Earnings Types that belong to individual calculation types for individual employees.
In William's case, the earnings types set for document type P000 are PRE, PRV and RDČ.
1.6. Bank Accounts
The person responsible continues by checking the entered data about the employee's bank account.
The person responsible goes to the Bank Accounts panel.
The person responsible can enter domestic or foreign bank accounts in lines.
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The bank account length is run with the control set in the Administration Panel | Personnel with the checked  checkbox.
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The employee's active bank account is with Addiko Bank, marked by the checked checkbox in the Active column.
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WARNING
If the employee's bank account changes, the person responsible does not delete the previous account, but adds the new one in a new line and marks it as Active.
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It is imperative that the following fields are filled in in the lower Account Details part:
- Create Paym. Or.: it is selected that a payment order is created for the employee
- Payout Method: that the salary is paid to the bank account.
The field in the %ALL column is automatically filled in with 100,00%, marking that the entire salary is paid to the selected bank account.
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HINT
If the salary is paid to several bank accounts, the ratio is set in the %ALL column.
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The person responsible continues to the Relief panel.
1.7. Relief
The Relief panel is used for tracking reliefs for:
- for voluntary and non-professional performance of protection tasks
- special reliefs for family members
- additional general reliefs
- general reliefs.
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HINT
If the employee, for whom the calculation is being prepared, has a dependent family member, this data must first be entered in the Family Members panel. This is the only way the family member can be selected in the Special Reliefs for Family Members field.
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In this case, the employee has no dependent family members.
The line at the Additional General Relief under ZDoh-2A field is automatically filled in, with the Active checkbox checked.
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WARNING
- The Personal Income Tax Act – ZDoh-2 calculation of advance income tax from income from the employment relationship stipulates that, when calculating the advance income tax, the main employer takes into account 1/12 of the amount of the general, personal, special relief, which is otherwise taken into account when assessing income tax from the annual tax base.
- The amount of the general relief when calculated into income tax is entered in the Administration Panel | Personnel | Payroll in the
 field. Double-clicking opens the Reliefs Register.
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1.8. Loans
In the Loans panel, the person responsible enters all data about the employee's loans, enforcements, or alimony payments.
In this case, the employee has a loan at Addiko Bank Ltd., the total unaccounted value is 1,200.00 EUR.
The Value of the monthly instalment, which is treated as a deduction from the net salary on the payroll, amounts to 100.00 EUR.
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HINT
For instructions about entering loans, enforcements and alimony, see the chapter Credits.
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Setting Registers
The person responsible must have the following registers, accessed through Settings | Personnel | Payroll, in order before calculating payroll:
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If there are legal changes or if you are making the first calculation, it is necessary to transfer new data from the web server to the registers by clicking the  (Import/Export Data) button and selecting the Transfer Registers option.
For instructions on using the Transfer Registers feature, see the chapter Importing from a web server.
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- In the Document Types Register, a document type for regular salary calculation must be created. As said above, at Employee Files | Calculation Types, the document type created for regular calculation is P00 - Regular Calculation.
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HINT
Some document types are predefined in the Document Types - Payroll Register, intended to help you create new calculation types. You can view the document types HERE.
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HINT
The Earnings Types Register is accessed by clicking Settings | Personnel | Payroll | Earnings Types, or by double-clicking the field containing a type of earning.
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3. Preparing a Salary Calculation
To calculate payroll, the person responsible selects the menu Personnel | Payroll | Payroll Preparation.
3.1. Selecting the Calculation Document
From the document types provided, the person responsible selects the document created for preparing a regular calculation. In this case, P00 - Regular Calculation.
A P00 - Regulat Calculation window opens, which is divided into four sections:
six additional panels in the lower section:
- Preparation – preparing the salary calculation for the selected employee
- Credits – the panel displays the selected employee's active loans
- Errors – errors in payroll calculation
- Payment Orders – creating vouchers for pay slips
- Posts – automatic payroll posting
- Summary – displays the summary of calculated salaries and contributions for all employees
3.2. Calculation Header
The person responsible creates a new record by clicking the 
(Insert record) in the taskbar.
The program automatically creates the Pay Slip number in the Header of Payroll Preparation, in the Pay Slip field.
3.2.1. Defining Period and Dates
The Period field is automatically selected as the period for which the payroll is being calculated (year and month of the calculation).
Next, the person responsible defines the payout date, in this case 10.5.2022. The person responsible selects this date in the Payout Date field.
The Calculated on date is always identical to the Period date. In this case, the period is 2022-04, so the person responsible checks that the date selected in the Calculated on field is 30.4.2022.
It is also important that the tax date in the Tax Date field is the same as the payout date.
The person responsible saves the record by clicking the 
(Save Changes) button.
3.2. Employee Data
The person responsible goes to the Employee Data part of the window.
Next, the person responsible limits the data display to the selected employee, William Worker.
The person responsible goes to the line with the names of columns. Clicking the 
limits the employee display criteria.
To see data for the selected employee William Worker only, the person responsible marks the checkbox next to the name William Worker in the drop-down list.
Only data for the selected worker appear in lines, as shown in the image below.
By right-clicking the line with column names, the columns can be adjusted. The person responsible selects the option Edit | Select Columns.
With the mouse's left button, the person responsible holds and drags any desired column from the Columns window to the bar among other columns.
In employee lines, the following data is visible:
- Registration No.: 0018
- Nat. ID No.: 0208970500123
- Position: Manufacturing employee
- Department: Manufacturing
- Grade: 42 pay grade
- Length of Service Bonus: 11
- Gross Salary: 2,198.84 EUR
Next, the person responsible copies data about the employee's regular work and absences to regular calculation.
3.3. The Payroll Preparation Tab
The Preparation panel displays data about the selected employee. The panel displays data about individual earnings types for the employee.
Because this is not the first time this employee's pay is calculated, and because the person responsible has, in the Earnings Types Register, selected the 
checkbox on all three displayed earnings types:
- PRE – Meals
- PRV – Transport
- R – Regular work
the three types are automatically filled in to lines.
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WARNING
Earnings Types for transport and meals are defined in Administration Panel | Personnel | Payroll | Basic Settings in the fields shown in the image below:
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In this case, the earnings types displayed in the image below are entered for employee William Worker.
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HINT
If data in lines is being entered for the first payroll calculation, you can add lines by clicking the  (Wizard) button and selecting one of two options: Copy Earnings Type or Copy Earnings Type to All.
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At the Hours Worked field, the missing work hours are written in red. In this case, -16 hours.
In order for the hours worked to be filled, the absence data from the employee's Calendar must be imported.
3.3.1. Copying Absences to Payroll Preparation
The person responsible copies data about the employee's absences from the Calendar.
This is done in the Header of Payroll Preparation by clicking the 
() button for all employees, or the same button in the lower part of the window for a selected employee (see image below).
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HINT
For instructions about Entering New Absences, see the chapter New Absence.
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The program asks: Do you really want to import absence data from calendar?
The person responsible clicks Confirm and the data is imported from the employee's Calendar.
The program notifies: Data transfer complete!
The person responsible clicks the Confirm button.
In the lower part of the window, on the Preparation tab, the program adds lines with data about absences.
From William's Calendar, the following data have been imported in this case: Annual Leave and National Holiday. The employee used one day of leave and one day was a national holiday.
The Hours Worked field is filled in with hours worked in the month: 168 hours.
The data can be checked in the employee's Calendar. In the Employee File, the person responsible selects the Absence Overview panel and clicks the 
(Absence Overview) button, which opens the employee's Calendar as shown in the image below.
The Calendar shows the leave entry on 15.4.2022 and the national holiday entry on 18.4.2022.
When the person responsible has entered all data about absences, regular work, transport and meal costs reimbursement, the calculation can continue.
4. Calculating a Salary
The person responsible clicks the 
(Salary Calculation for All Employees) button.
By clicking the same button in the lower part of the window, the person responsible runs the calculation for the selected employee only.
The program calculates data about the employee's salary to fields marked in the image below.
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WARNING
If errors appear when Calculating Salaries, the program opens the Errors panel. For more information about errors in salary calculation, see the chapter Errors.
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4.1. Explanation of Calculation Lines
- Regular work is calculated using the formula entered in Earnings Type Regular Work.
The Gross Salary (Del03 = the gross salary entered in the Employee File) * Hours (PRHours = hours entered in the regular work line in the Payroll Preparation) / Monthly Hours Worked (Fa3 = hours worked entered in the Average Salaries Register).
In this case: 2,198.84 * 152 / 168 = 1,989.43 EUR.
The amount is visible on the Pay Slip tab.
In the following columns, you can find calculated values of contributions that must be calculated with the Earnings Type.
- For the transport on the Transport Earnings Type is calculated as 37 EUR which the employee has entered in the Employee File, in the Commute to Work field. It represents the value of a monthly ticket for Ljubljana public transport.
- The Earnings Type for Meals is calculated with the entered formula:
Days (VZRDČ- Days = number of days entered in the Regular Work line in the Payroll Preparation ) / 8 * Meals amount (Fa5 = amount for meals entered in the Average Salaries Register).
For every day of work (regular work hours), the employee is reimbursed the maximum meal amount.
In this case: 19 / 8 * 6.12 = 14.54 EUR.
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WARNING
If errors appear when Calculating Salaries, the program opens the Errors panel. For more information about errors in salary calculation, see the chapter Errors.
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- The national holiday compensation Earning Type DRP is calculated using the formula:
Gross hourly rate for compensation calculation up to 30 days (Del28 = gross hourly rate entered in the Employee File, in Custom Fields) * Hours (PRHours = hours entered in the National Holiday line in Payroll Preparation).
In this case: 13.27 EUR * 8 = 106.12 EUR 
- The employee used another day of leave, Earnings Type DOP. The gross amount for one day of leave is calculated using the same formula used to calculate the national holiday amount, and therefore also amounts to 106.12 EUR.
- The Length of Service Bonus Earnings Type also appears on the pay slip, in the Length of Service Bonus line.
The employee is entitled to a 218.84 EUR gross Length of Service Bonus.
The Length of Service Bonus is calculated using the formula entered in the Administration Panel | Personnel | Payroll, in the Miscellaneous section.
The Length of Service Bonus formula is entered into the Length of Service Bonus Formulas Register, accessible by double-clicking. The data entered here counts for the Length of Service Bonus in the company. The predefined value is 0.5% yearly.
In the formula, the program refers to fields in the employee's Employee File on the Employment Record panel.
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HINT
The formula for calculating the Length of Service Bonus entered in the Employee File | Employment Record, can be found in the Administration Panel | Personnel | Payroll, in the General section of the window.
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The person responsible goes to the Pay Slip tab, where data about the gross and net values, contributions for and from, and personal income tax according to different earnings types from the Preparation tab is found.
In this section, the person responsible can only view the calculation.
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WARNING
To create a reverse for the salary calculation, see the instructions in the chapter Reverse calculation.
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