This article explains how you can configure the basic settings for the preliminary payroll area. To reach the settings, go to Settings > Salary & Payroll > General. Then fill in the following sections.

Payroll group

Set Payroll groups to create separate preliminary payroll tables and exports. Payroll groups can be created based on any attributes of the type List of options. 

Payroll groups for legal entities

If you have enabled legal entities, employees must be assigned a legal entity and preliminary payroll is then, by default, first segmented by legal entity. You can still create subgroups in the general payroll settings using the Payroll Groups option. When you access the preliminary payroll area, you will first have to select the legal entity and then the Payroll group to access the payroll table. 

Review reminders

Specify the day of the month on which admins should receive the task to review preliminary payroll. 

Once you have set a monthly notification for admins reminding them to review payroll information, they must activate the notification for their accounts. To do this, they need to follow these steps:

1. Go to the Avatar > Personal Settings. 
2. Select Notifications. 
3. Under Payroll review, activate the notification for the Dashboard and, if enabled, via Email.
4. Click Save.

Salary proration

Define the basis for prorate salary calculation. Prorate salary calculation is used for base salaries and recurring compensations whenever one of the following cases occurs during a payroll period:

• Entry or exit of the company after the first day of the month
• Compensation changes (raise/ decrease)
• Compensation type changes (hourly to fixed and vice versa)
• Unpaid leaves and absences

To define the basis on which prorated salaries should be calculated in Personio according to your company’s internal regulations, you can choose in Personio between calculation:

• Based on 30 days
• Based on days of month

The following example illustrates the two different approaches to prorate salary calculation based on a salary increase which is to take effect on the 15th of the month. It clarifies the effect the different calculation approaches will have on the salary paid:

Note
It is always the actual number of days of the month which are considered in the numerator, regardless of the chosen calculation approach.

Payroll periods

Payroll periods are based on the Payroll groups you have selected in the general settings. They define the time frame over which the tracked hours and leave periods are added up, if you have added them as attributes to be exported. You have the option to set one Payroll period per Payroll group. To set this up, follow these steps:

1. Go to Settings > Salary & Payroll > Payroll periods. 
2. Select a payroll group and click on Edit.
3. Fill in the required fields.
4. Save your entry. 

The payroll period is then set from the following month.

To see past payroll periods per payroll group, click on History in the relevant payroll group. 

Payroll data in the preliminary payroll table

Payroll data is displayed in different columns of the preliminary payroll table based on your setup here. If you have enabled legal entities, you can customize these for each legal entity separately. Configure the following under Settings > Salary & Payroll > Payroll data > Legal entity (if enabled):