The Salaried Employees feature provides several options for managing your payroll costs when you have employees that aren't paid hourly in Planday. In this article we'll guide you through the setup process and find the option that best suits your needs.
Please note: If you have worked with salaried employees in Planday prior to February 2019, this feature's release date, there are some important points to consider before continuing with setup. You can find more information below.
Setting up Salaried Employees
Salaried Employees offers three ways of allocating payroll costs in the schedule with the aim of making your salary percentage as accurate as possible. You can choose to have the payroll cost as a flat monthly salary, or alternatively, if you want the payroll costs to be split out as an average on each opening day in the given month, you can now do so. The third option is to manage your salaried employees in Planday, but exclude their salary from affecting the costs in the schedule by not assigning a salary to them.
To set an employee's salary go to People, find the correct employee, then select the pencil icon to the right of their details. In the Edit employee menu you will find the Monthly salary field, select New monthly salary.
Monthly salary: With this option the average hourly cost in the schedule is based on the monthly salary divided by the number of scheduled hours in the respective month. The total costs in the schedule will therefore never vary from the monthly salary. For example, if an employee is paid £4200 per month, and is scheduled for 120 hours in a given month, the average hourly costs are £4200 divided by 120, giving us an hourly figure of £35. The payroll start day is the date of the month from which each monthly salary calculation will begin. This value cannot exceed 28 due to February not having a higher value than 28 excepting leap years.
Scheduled hours: With this option the total cost in the schedule for a salaried employee is based on an hourly wage calculated from their monthly salary divided by their contracted hours. This hourly figure is then multiplied by the number of hours the employee is scheduled for in a given month. As a result the scheduled cost may vary from the employee's monthly salary if they're scheduled for more or less than their set contracted hours. For example, if an employee is paid £4200 per month, contracted to work 120 hours, but scheduled for 160 hours, then £4200 divided by 120 gives us £35. We then take this figure and multiply it by 160, giving us £5600.
With this option the average costs are set per day. The average daily costs in the schedule will be based on the monthly salary divided by the number of business days in the given month. The total costs for a salaried employee will never vary from the monthly salary. The average daily costs can vary from month to month according to business days in that month. If a salaried employee is a member of more than one department, you will have the option to select which department the costs should be allocated to.
With this option an employee's monthly salary will be excluded from costs in the schedule. It will still be added to the payroll report however.
Notes for previous version of Salaried Employees
As mentioned at the beginning of this article, if you have worked with salaried employees in Planday prior to February 2019 you likely have a setup that requires adjustment before using the updated salaried employees feature. We have used three different methods in the past to work around previous limitations. Once you've identified the setup that you're currently using, you can follow the instructions to continue:
Fixed Cost User:
The fixed cost user is a paid by shift 'dummy' employee created in Planday to sit at the bottom of the schedule. This employee typically has all of the management/salaried costs which should be added to the schedule. We recommend contacting our support team to assist you with switching from this method to the updated salaried employees feature.
Paid by shift:
If your setup uses the paid by shift work around then salaried employees will have their salary calculated and split over a five day cost. (In some cases it may be more or less than five depending on their weekly work schedule) There are two steps to take in this scenario:
1. Go to People and find the employee, select the pencil icon to the right of their name, and select Groups & Wages. Here you can set the paid by shift value to zero for their employee group.
2. Next, go to Settings > Shift types, find the Shift type labeled 'Extra Shift', select the red delete icon on the right, then confirm.
Once complete you are free to set up the employee's salary using the steps outlined at the beginning of this article.
Additional Payroll cost:
The additional payroll cost setup involved leaving the salary for your employees at zero, calculating the sum of their salaries, and entering this sum as an additional payroll cost. This was set in Settings > Revenue > Month budget. To use the new salaried feature simply remove these additional payroll costs.