Formulas-based Payroll Category is calculating way too low
A formula-based payroll category has been setup as (for example) 10% of salary, but is only calculating at 1% - way too low.
This is because the percentage has been duplicated, and the formula is calculating at 10% of 10%. Here is why:
There are two ways to setup a formula percentage in Paymate: 1) You can setup a percentage that will apply for ALL employees (i.e. every employee in the company will be calculated at 10%), or 2) Each employee will have a different percentage (i.e. some employees have 10%, some are at 8%).
Since the system carries the percentage for the category in two places, the percentages will be duplicated if entered in both areas. You must set up these categories as follows:
If the percentage is the SAME for all employees:
The percentage should be input at the proper rate in the Payroll Category setup, and then input as 100% in the employee’s setup. This, then, will calculate the employee as 100% of the 10% being calculated by the formula.
If the percentage is DIFFERENT for all employees:
The percentage should be input at 100% in the Payroll Category setup, and then input as the proper percentage in the employee’s setup (i.e. 10%). This, then, will calculate the employee as 10% of the 100% being calculated by the formula.