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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?

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. Scroll down until you find Additional Compensation
  5. Click on Add 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. 


🪄 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.

🔢 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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