Salary accounts

Introduction

Here you can set up your salary and absence codes, so they match the needs in your company.  It is good to use, if you e.g. have employees on different collective agreements, where you may need to have different setups.

Description

You make the setup in the system administration -> Employees -> Salary accounts. If you would like to use salary accounts and advanced salary management, you first need to enable it at the front page of the system administration.

We recommend that you make your salary setup together with your salary bookkeeper to make sure that the registrations can be added correctly to your payslips.

Filter

On the top of the page, you find the filter, where you can select to see active, inactive or all salary accounts. As default, you only see the active accounts. Click Show to see your accounts in the list below.

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Salary accounts

Here you see a list of the salary accounts created in the system. As a default, you see accounts for flex, illness and vacation. If you click the plus to the left, you open a list of all the salary and absence codes linked to the different accounts.

You can link one or more salary or absence codes to each account. We recommend that you stick to one code set for each salary account to make it easier for you, your employees and the salary bookkeeper to overview the calculation.

Creating a new salary account

You create a new salary account by clicking the New salary account button, which opens up your edit options.

• Code: Here you enter which sorting the account should have in your list
• Name: Here you enter the name to be shown in the list and reports
• Description: Here you enter information about the account
• Balance format: Here you decide if the account should count in hours, days or numbers
  
  

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Creating a new salary code

You create a new salary code by clicking the New salary code button, which opens up your edit options.

The first three are shown for the employees in the timesheet:

• Sorting: Here you enter which sorting the code should have in the timesheet
• Name: Here you enter the name to be shown for your employees in the timesheet
• Description: Here you enter information about the code, so you employees have no doubt that this is the right code to register their time on

The remaining options are only visible to you as system administrator:

• Salary account: Here you select which account your employees’ registrations should be added to
• Salary specification type: Here you select how to specify your employees’ registrations. The selection here helps and eases the work for your salary bookkeeper
  o Salary specification: Is e.g. used to register overtime (time registration x factor)
  o Supplement: Is e.g. used to register service duties outside of normal working hours
  o Paid out: Is e.g. used to register the number of hours to be paid out to the employee
• Format: Here you select to register in Hours, Full days or Half and full days. We recommend that codes related to illness are typically set to Hours, where vacation and e.g. maternity leave are set to Half or full days
• Calculation method: Decides if time is added or subtracted from the salary account the code belongs to. You get the overview and assign days/hours via the Salary management
• Factor, salary account: This factor determines how much time is added to or subtracted from the account for each registered hour. If the factor e.g. is 2 and time is deducted from the account, a registration of 0.5 hour will result in a 1 hour deduction from the account
• Factor, flex account: This factor determines how time tracked on the salary code affects the employee's flex account. If the factor is e.g. 1, the balance increases with 1 hour when tracking 1 hour on the salary code. If the factor is e.g. 1, the balance increases with 1 hour when tracking 1 hour on the salary code.
• At the bottom, you can mark the code to be activated once you save the code

Remember to click Save, once you have made your settings.

Maintaining salary codes

If no changes are made to your local or collective agreements, you do not need to change the codes. They automatically run from year to year based on your settings.
If you do need to change one or more codes, we recommend you to create a new and deactivate the current one. This is among other things to ensure that the calculations are done correctly and that there will be no doubt about the conversion, if you change from one format to another.

A rule of thumb is that if you would like to change the way to register, the format or the specification type for a code, you should create a new one.

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Creating a new absence code

You create a new absence code by clicking the Read more about salary management button, which opens up your edit options.

The first three are shown for the employees in the timesheet:

• Sorting: Here you enter which sorting the code should have in the timesheet
• Name: Here you enter the name to be shown for your employees in the timesheet
• Description: Here you enter information about the code, so you employees have no doubt that this is the right code to register their time on

The remaining options are only visible to you as system administrator:

• Absence type: Here you select if the absence code belongs to the type Illness, Vacation, Absence non-compensated or Absence, compensated. The selection is used to provide overview in reports, where you can gather registrations for different absence codes
  o Illness: Is used to register when your employees were sick or e.g. had rehabilitation.
  o Vacation: Is used to register when your employee have vacation
  o Absence, non-compensated: Is used to register absence where you pay for the time you spend yourself. It could be self-paid education
  o Absence, compensated: Is typically used to register absence where the company pays for the time you spend. It could e.g. be maternity leave.
• Salary account: Here you select which account your employees’ registrations should be added to
• Format: Here you select to register in Hours, Full days or Half and full days. We recommend that codes related to illness are typically set to Hours, where vacation and e.g. maternity leave are set to Half or full days.
• Calculation method: Decides if time is added or subtracted from the balance of the absence code. You get the overview and assign days/hours via the Salary management.
• Factor, salary account: This factor determines how much time is added to or subtracted from the account for each registered hour. If the factor e.g. is 2 and time is deducted from the account, a registration of 0.5 hour will result in a 1 hour deduction from the account
• Factor, flex account: This factor determines how time tracked on the salary code affects the employee's flex account. If the factor is e.g. 1, the balance increases with 1 hour when tracking 1 hour on the salary code. If the factor is e.g. 1, the balance increases with 1 hour when tracking 1 hour on the salary code
• At the bottom, you can select if the code should add to the flex account

Depending on your setup of TimeLog, you have a number of options to the right. You can mark if time registered on the code should be

• Approved by a manager
• Deducted as capacity in the resource planner
• Shown for all in the Holiday calendar report

Remember to click Save, once you have made your settings.

Maintaining absence codes

If no changes are made to your local or collective agreements, you do not need to change the codes. They automatically run from year to year based on your settings.

If you do need to change one or more codes, we recommend you to create a new and deactivate the current one. This is among other things to ensure that the calculations are done correctly and that there will be no doubt about the conversion, if you change from one format to another.

A rule of thumb is that if you would like to change the way to register, the format or the absence type for a code, you should create a new one.

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Create a new salary rule

You create a new salary rule by clicking the New salary rule button, which opens up your edit options.

• Select rule: Here you select which rule you would like to set up
• Automatic accumulation: Here a general addition is done, no matter what your normal working hours are
• Automatic accumulation based on working time: Here the addition is done based on your normal working hours
• Salary account: Here you select which salary account the rule applies to
• Accumulation: Here you enter the number of hours or days that is accumulated per addition
• Accumulation frequency: Here you select, if you want to accumulate per week, month, quarter or year. The accumulated number of hours or days is released the first day in the following period. Please note: For yearly accumulation, you need to select in which month the accumulation starts

Depending on your setup of TimeLog, you have the option to set up to or more rules.

Remember to click Save, once you have made your settings.

Calculations

Here we provide you with an overview of how the system does the calculations of the automatic accumulation, if you have an employee who starts or stops in the middle of an accumulation period. We calculate based on the start or end date and the number of workdays within the period. We cannot add more than what matches a full period. We always round to two decimals.

We use the below calculation models:

• Weekly accumulation: Number of days hired / 7 * Accumulation 
• Monthly accumulation: Number of days hired / 30 * Accumulation 
• Quarterly accumulation: Number of days hired / 90 * Accumulation 
• Yearly accumulation: (Number of days hired / 30 * Accumulation) + (Full months within the accumulation period / 12 * Accumulation)

Salary rule maintenance

If no changes are made to your local agreements, collective agreements or legislation, you do not need to change the rules. They automatically run from year to year based on your settings.

If you do need to change one or more rules, you do it with a click on the pencil next to the name. It opens your edit options:

• Salary account: Here you select which salary account the rule applies to
• Accumulation: Here you enter the number of hours or days that is accumulated per addition
• Accumulation frequency: Here you select, if you want to accumulate per week, month, quarter or year. The accumulated number of hours or days is released the first day in the following period. Please note: For yearly accumulation, you need to select in which month the accumulation starts

Remember to click Save, once you have made your settings.

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If you use a salary integration

If you use one of TimeLog’s standard integrations for salary systems, you can for each code decide if it should be included in the export for the salary system and which code the registrations should be transferred to in the salary system.

Please note: This does not apply for the integrations to Zenegy and DataLøn.

Employees at different collective agreements

If you have employees working on different collective or local agreements, we recommend you to use salary groups to assign your employees with the correct codes for their registration. You can read more about salary groups and the setup here.

Examples of how to set up codes for time off in lieu and overtime

We here provide you with a few examples of how to setup your codes for time off in lieu and overtime.

Time off in lieu

First, you need to make sure that you have a salary account set up for time off in lieu. Then you create a new absence code with the below settings:

• You decide on Sorting, Name and Description yourself
• Reporting group: Absence, compensated:
• Salary account: Time off in lieu
• Format: Hours – Or days, if your employees are only allowed to take time off in lieu as full or half days
• Calculation method: Time is added
• Factor, salary account: 1
• Factor, flex account: 0

The time registration counts as work time and the difference on the day will be 0.00.

You will see the registrations in the following reports:

• Salary account specification
• Salary specification (all employees)
• Data extraction: Absence and salary codes

Overtime

We recommend you first create a salary account matching the name of your salary code. Then you create a new salary code with the below settings:

• You decide on Sorting, Name and Description yourself
• Salary account: Here you select your newly created account
• Salary specification type: Salary specification
• Format: Hours
• Calculation method: Time is added
• Factor, salary account: 1
• Factor, flex account: 1.5

When your employees register time on the code in the timesheet, the time registration is multiplied with the factor 1.5, and 2 hours turn into 3 hours on the flex account.