Welfare Auto Deduction Process in Payroll

"In the application, we have implemented an automated Welfare deduction on Percentage basis  process to facilitate employee welfare contribution, allowing for deductions from their salary through recurring deduction in the payroll management."

Follow the below mentioned steps to process of Welfare Deduction

1. Configuration and Implementation  of Welfare Deduction on Percentage basis :

    A. Welfare percentage configuration in ddmin level configuration

• Navigate to Setting List >>Company Setup>> Portal Settings >>Common Settings>> choose the Salary Structure - Header Applicability Configuration >> Enable the option  Enable & Consider Welfare Deduction while Payroll as per Salary Header applicability & add the percentage in Welfare Deduction Percentage option and save the configuration.
  

B. Salary header configuration for auto welfare computation for deduction

• Navigate to Setting List >>Staffing Master >> Choose the Salary Header & create the salary Hader for welfare auto deduction from the employee salary. Use the Item type as Welfare deduction , Header Type as deduction & Header group as General deduction and Formula bar always with i and save the salary header

• Enable the compute only on Earned Salary configuration on the welfare deduction salary header If the payroll level computation required on the prorate of the salary. If not disable the configuration and computation will consider on the actual salary of the applicable salary headers.

C. Allocate the Welfare salary header in the salary structure and It is mandatory

• Navigate to Setting List >>Staffing Template >>Salary Structure >> Choose the selected salary structure and add the  welfare salary header

D. Enable the Welfare deduction applicability on the applicable salary header

Enable the Applicable for welfare deduction configuration under salary header which are the salary component is applicable to compute the configured percentage on the earned salary header. Such as Welfare deduction computation depends on Basic, HRA etc.. Enable the mentioned configuration on those salary header.

E. Payroll Process and Welfare deduction computation

• Once payroll has been processed, Set upped percentage of Welfare deduction will compute on the employee particular month salary. Same has been impacted with employee Net take home.
  Welfare Deduction will not reflect in the  employee offer letter and only available in the employee payslip.