>Payroll >Settings >Contribution Types
Enables user to define various contribution calculations tailored to their country or company's regulation.
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Configuring Contribution Type
Follow the steps below on how you can amend or add new a contribution type.
Step 1: Complete General section
- "Active" means the contribution will be deducted on the next payroll run while inactive means it will not.
- Turn on "Full Contribution Deduction" if you wish to deduct this contribution full in the in your payroll 1st half.
Recommended to add the exact contribution name given by the government.
Step 2: Fill in Wage Section - set the correct wage type to determine the wage basis of the computation.
- Wage Types
- Monthly Basic Wage is based on the Basic Wage set on the employee's profile
- Total Wage is based on all wages including tardy, absent, overtime and holiday pay
- Actual Basic Wage is based on actual basic wage earned in the payslip
- Min Wage Restrictions
- Select Wage to let system based its computation on Wage Type
- If computation should be capped, select Min Wage or Min Wage Floor
- Rounding Multiple - round wage up to the nearest multiple.
- Wage Floor and Wage Cap - serve as the minimum and maximum wage limit in computing for contribution.
Step 3: Configure Rates - add the rates issued by the government.
- Rate Type - select if Rate or Fixed Amount
- Rate Flag - will determine if it should take effect in Wage or Age; select None if not applicable
Step 4: Input Amounts - will serve as the minimum and maximum contribution amount that can be deducted.
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