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Additional Compensations in Payroll

Find out in what ways Factorial allows users to customize contract fields and additional compensation types for their different Legal Entities.

➕ What are Additional Compensations?

Benefits of using additional compensation:

Additional compensations will streamline the payroll definition process, as your company will be able to:

  • Avoid routine tasks: You will not have to define each supplement repeatedly for each employee and period. Factorial will take care of programming them with the rules you define.
  • Minimize errors: You will not have to remember variables or bonuses, Factorial will do it for you.
  • Automate the calculation: Factorial will automatically calculate some supplements for you, such as those based on allowances per worked day. Many more to come!

Additional compensation is salary paid in excess of an employee's base salary for effort that is performed in addition to or outside of effort spent on normal job duties. Additional compensation allow companies to predefine compensations besides base salary that an employee can opt for on a certain payroll period. 

With Factorial, additional compensations have a set of properties that will be introduced throughout the article. 

👩🏼‍⚖️ Additional Compensation in Contracts

  • Head to Company
  • Select Legal Entity
  • Click on Contracts

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How do I add options to additional compensations?

💡Factorial will provide you with a set of predefined additional compensations. 

  • Click on ⚙️
  • Press on Edit 
  • Click on +Add Option
  • Press on Submit 

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☝🏽Once an additional compensation has been added, you will not have the option to delete it. The only option you have is to archive an additional compensation.

How do I archive an additional compensation?

  • Click on ⚙️
  • Press on Edit 
  • Click on  🗃


How do I Add Additional Compensation to an Employee?

  1. Head to Employees
  2. Select an employee
  3. Head to Contracts
  4. Enable the Contract version
  5. Scroll down until you find Additional Compensation
  6. Click on Add Compensation 

additional compensation

👇🏽Below, you will be introduced to the different set of properties for additional compensations.

💸 Types of Additional Compensations

  • Undefined = When the amount is unknown but will be defined during the payroll period.
  • Fixed = When the amount is always the same exact number.
  • Up to = When the amount can reach up to X amount but is not defined yet as depend on other variables such objective achievement. 
  • Per worked day = This mean that the amount X will be added for this specific employee based on its worked days. It will be calculated by the estimated work days minus the time off.

per worked day

When choosing Per worked day the calculation will be 👇

In the current period: This means that the days I work in the current period, for example in the month of September will generate a supplement during this month, according to the payroll policy. 

In the previous period: This means that the days will be calculated in the previous month but generated in the current, for example the days will be calculated in August but generated in September. According to the payroll policy. 

🪄 Additional compensations can be synced automatically with Payroll if the user wants it, if so they will generate a supplement in the Payroll app following the configuration set previously by the user.

  • Go to Payroll
  • Click on the Employee to which has been added the compensation

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🔴 The supplement will be updated day by day 

🔢 Additional Compensations Percentages

⭐️You can easily calculate the total amount your employee has to receive as a supplement based on their goal's achievement in Factorial. 

How does the percentage calculator work?

  1. Set an additional compensation type 'Up to' in your employee contract to automatise the supplement creation in the desired payroll period.ezgif.com-gif-maker-91-1
  2. Specify the amount they are up to receive if achieving the 100% of their goal on a payroll period. 
  3. In the supplements tab add the % of the goal achieved and Factorial will calculate the amount they should receive from you. 
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