This article is for: HR teams and admins.
Before expenses can be paid back through the payslip, payroll needs to know where each one goes. You link every expense category to a payroll concept once, and from then on each reimbursement lands on the payslip under the line you chose.
Link expense categories to payroll concepts
Overview
Where you do this depends on how your company runs payroll in Factorial. If your company has Compensation, expenses go there; if not, they go to Payroll and you use the older settings screen.
Before you start
- Your plan includes paying back expenses through payroll. It depends on your plan; your Account Manager can confirm.
- Your company uses Factorial Compensation or Payroll.
- In Compensation, the payroll concepts you want to use are enabled: only enabled concepts can be picked.
How to use
If your company uses Compensation
- Go to Compensation, click the settings icon at the top right (or go to Settings > Compensation), then Connected modules > Spending. You'll see Spending categories assignment: "Assign each expense category to a payroll concept for payslip compensation. Only enabled concepts can be selected."
- In the table, find each Spending category and choose its Payroll concept. Each change is saved straight away ("Saved successfully").
When your company set up Compensation, Factorial linked every enabled category to a default concept. Check the table and change any of them if your payroll needs a different line. Missing a concept? The list links to the payroll concepts settings, where you can create, enable or edit them.
If your company uses Payroll (older setup)
- Go to the Payroll app settings and open Synced compensations ("Sync expenses and overtime with payroll").
- In Expenses reimbursement, click Manage categories & titles. You'll see "For each legal entity, provide a supplement title for each expense category."
- For each expense category, choose the supplement title for each legal entity, and save.
Shortcut while paying back: in the Reimbursement via payslip window, under Payslip details, click Manage categories. With Compensation, it opens the Spending categories assignment page above.
Tips and Best Practices
- Check every category has a concept whenever you turn a category on or add a subcategory, before your next payroll run.
- Agree the concepts with whoever runs your payroll before you change the defaults. Factorial doesn't calculate tax on expenses.
- Related: How do I pay back expenses through payroll? · How do I set up expense categories and subcategories? · How do I set roles and permissions in Expenses? · Expenses FAQ for HR and payroll
Troubleshooting and FAQ
Troubleshooting
"Reimbursement via payslip unavailable" ("Assign a compensation title to all expense categories to enable reimbursement.")
At least one of the expenses has a category with no payroll concept or compensation title. Link it in the settings above, then try again.
I can't find the payroll concept I want in the list.
In Compensation, only enabled concepts can be selected. Enable the concept first, then come back to the Expenses mapping.
I don't see "Reimburse via payslip" at all.
Your plan needs to include paying back through payroll (your Account Manager can confirm), your company needs Factorial Compensation or Payroll, and you need Can reimburse expenses plus Create supplements from expenses. See How do I pay back expenses through payroll?
FAQ
1. Which settings screen applies to my company, Compensation or Payroll?
If your company has Compensation, expense reimbursements go to Compensation and you map categories in Settings > Compensation > Connected modules > Spending. If not, they go to Payroll and you use Synced compensations > Expenses reimbursement. Not sure which? If your company has Compensation, you won't see the older Payroll settings screen.
2. Do I have to map every category by hand?
In Compensation, no: when Compensation was set up, every enabled category was linked to a default concept. Check the table anyway whenever you turn a category on or add a subcategory, so every category has a concept.
3. Can each legal entity use a different title?
In the older Payroll setup, yes: you assign a supplement title per legal entity.
4. How does a mapped expense show on the payslip?
As a compensation under the concept or title linked to its expense category. The employee sees the expense as In payroll.
5. Does Factorial work out which part of an expense is taxable?
No. Factorial sends each expense to the payslip under the one concept linked to its category, and doesn't calculate tax. Check with your payroll provider or tax adviser how to treat it.