To enter allowances paid to members, you first need to set up the payment items your company uses.
These settings are used when entering member wage contract information or during payroll processing.
Payment Items
Click [Settings] → [Payroll] → [Payment Items] in the bottom left menu. You can manage items paid to members, and these items are used in member information, electronic contracts, and payroll processing.
Fixed Payment Items
You can add fixed items via [Add Fixed Payment Item] at the top of Payment Items.
These are items paid to members on a fixed basis. Try adding items that make up the annual salary or monthly salary!
[Create New] -> You can set the name, cycle, amount, etc. of the fixed item you want to add.
For detailed information about fixed payment item settings, click the ▶️ below!
Fixed Payment Item Settings
Fixed Payment Item Settings
Payment Cycle
Monthly Payment: Select monthly payment.
Selected Month Payment: If paying only in certain months, turn [Monthly Payment] OFF and select the payment months.
Payment Amount
Different amounts for each person: Leave the amount blank, and you can enter the payment amount directly in member information.
Same amount for most recipients: If most people receive the same amount, such as non-taxable meal allowance,
enter the applicable amount. Even if a small number of members receive different amounts (e.g., 9 people receive 200,000 won and 1 person receives 100,000 won for meal allowance), you can pre-enter the amount since individual amounts can be modified later in member information.
Annual Salary (Monthly Salary) Inclusion: Used for automatic calculation when a member's contract amount is annual or monthly salary.
Included in Annual Salary: Calculated as an annual salary (monthly salary) included item during automatic calculations like ordinary hourly wage.
Not Included in Annual Salary: Calculated as an item not included in annual salary (monthly salary) during automatic calculations.
Tax Status
Taxable: You can select salary or bonus. It is aggregated as a taxable item during payroll processing, and salary and bonus are compiled as different types in payroll ledgers, etc.
Non-taxable: You can select a non-taxable type code. It is aggregated as a non-taxable item during payroll processing, and the non-taxable limit is calculated by aggregating each code.
Click [View More Settings] at the bottom for detailed settings on ordinary wage and average wage status and payment policies.
Ordinary Wage Status: Ordinary wage is used for calculating the ordinary hourly wage, which is used for overtime pay and unused annual leave pay calculations. Regularly paid allowances should generally be included in ordinary wage.
Average Wage Status: You can select the average wage status used for retirement benefit calculations, etc. Unless there are special circumstances, it should be included in average wage.
Payment Policy: You can select how to pay this item when the member did not work the full month during the payroll attribution month.
e.g.) For a 300,000 won monthly position allowance when only 10 out of 30 days in April were worked:
Pro-rated Payment: Pro-rated by days worked. 300,000 won * 10/30 days = 100,000 won paid
Full Payment: 300,000 won full payment
No Payment: 0 won paid
Payment Amount Unit: You can set rounding when decimal points occur after automatic calculation.
e.g.) When paying 1/3 of a 100,000 won allowance resulting in 33,333.333... won:
Round up at first decimal place: 33,334 won paid
Round up at ones place: 33,340 won paid
Hourly Payment Items
These are items paid on a fixed basis for hourly wage payroll.
Base Pay: This item is used when paying base pay as an hourly amount.
You can change the payment amount unit rounding option.
You can pre-enter information for the pay stub display field.
Weekly Holiday Pay: This is an allowance paid to workers who have perfect attendance during their prescribed working days in a week.
You can change the payment amount unit rounding option.
You can set the automatic calculation policy for weekly holiday pay when a worker only worked part of the week.
You can pre-enter information for the pay stub display field.
Variable Payment Items
These are payment items where the predetermined amount varies each month. They cannot be used in member information or electronic contracts and are primarily used in the payroll processing feature.
You can add variable payment items for your company through [Add Item].
Active employee annual leave pay and resigned employee annual leave pay are distinguished based on average wage calculation criteria.
Active employee annual leave pay is paid for unused annual leave generated based on attendance rate in the year prior to resignation, and is included in average wage.
Resigned employee annual leave pay is for annual leave newly generated due to resignation, and is not included in average wage.
Click each item to pre-enter content in the [Pay Stub Display Field]. By default, it is entered as Unused Annual Leave Days x Daily Prescribed Working Hours x Ordinary Hourly Wage, but it can be changed.
Base Pay Deduction: This is the amount deducted from pay for hours worked less than prescribed working hours and for unpaid leave.
You can change the payment amount unit rounding option.
You can change the item names for base pay deduction types (work shortage, unpaid leave usage).
Overtime Pay: Paid for hours worked beyond the prescribed working hours.
You can change the payment amount unit rounding option.
Overtime Pay Premium Rate Settings: Premium rates cannot be set lower than the minimum standards under the Labor Standards Act. Changed premium rates and item names can be reverted to the original settings at any time by clicking the [Reset] button.
Overtime Pay Item Name Settings: You can set different item names for each overtime type.
Automatic Amount Calculation Settings
In [Automatic Amount Calculation Settings], you can set the monthly ordinary wage calculation base hours and rounding policies for ordinary wage and ordinary hourly wage.
Wage & salary payment information in member profiles and payroll processing are calculated based on these settings.
If the intended amount is not being calculated, check that the ordinary wage calculation base policy and amount rounding policy in [Automatic Amount Calculation Settings] are properly configured according to your company's operating policy!
Ending and Reordering Payment Items
Payment items no longer in use can be ended by clicking the more button to the right of the item name.
However, payment items with the [Default] tag cannot be ended.
Ended items can be viewed and reused in [View Ended Items] at the top right.
Hover your mouse over the left area of a payment item to change the order via drag & drop.
However, default payment items with the [Default] tag cannot be reordered.
Is fixed overtime pay not included in ordinary wage?
Is fixed overtime pay not included in ordinary wage?
Fixed overtime pay is compensation for labor provided beyond prescribed working hours under a comprehensive contract, and while it is a monthly allowance paid according to the contract period, since the basis is for exceeding prescribed working hours, the compensation for overtime that may occur each month cannot be considered to have fixed nature, so it is not included in ordinary wage.
If you want to include fixed overtime pay in ordinary wage, you must create a separate payment item set as ordinary wage and apply and manage it for members.
When payment item settings are changed, are they automatically reflected in member payroll payment information?
When payment item settings are changed, are they automatically reflected in member payroll payment information?
When payment item settings are changed, they are not automatically reflected in already applied member payment information.
If you need to recalculate member payment information with the changed settings, go to the left menu Members - HR Information Management - Bulk Information Change tab - click Payroll Payment Information Change, match the payroll payment information effective date with the wage contract information effective date,
Select the members and click [Calculate Selected Targets] at the bottom to change the payroll payment information once more, then proceed with payroll processing!
The [Unused Annual Leave Pay] item that I was using in the variable items is gone.
The [Unused Annual Leave Pay] item that I was using in the variable items is gone.
With the introduction of the automatic unused annual leave pay calculation feature, the annual leave pay-related payment items you were using have been converted to 'ended payment items'. If continued use is needed due to special circumstances, click the three dots at the top right of payment items, click [View Unused Items], then click the three dots to the right of Unused Annual Leave Pay and select [Reuse Item] to continue using it.
