We have introduced the possibility to configure payroll groups and payroll periods at the legal entity level. This means that you can customize them depending on the needs of your different legal entities.

Key improvements

• Your payroll configuration closely mirrors your company setup. You can segment employees into groups that match how you process payroll within each legal entity.
•  You can adapt your payroll operations to specific legal, regulatory, and operational needs. 
• You are less likely to make mistakes or rely on manual workarounds because your setup in Personio mirrors the structure in your organization.

Transition timeline

Explore the new pay groups and pay periods settings

You can set up pay groups under Preliminary payroll > Manage . You can also adjust pay periods for each group under Settings > Payroll.

Here is a summary of what changed:

FAQ

How do pay period changes impact current, past, or future periods?

• Current periods : Pay period changes do not apply to the current pay period, regardless of its status (approved or unapproved). Pay period changes can only be applied to dates beginning in the next period.
• Past periods : Pay period changes do not affect past periods.
• Future periods : 
  • Pay period changes take effect based on the scheduled date that you select. For example: It is December and you schedule a Pay Period change to take effect in the February period.
  • When the future pay period start date changes, we create an Adjustment Period to fill the gap between the end of the current period and the start of the next.  
    
    For example, consider a pay period scheduled from the 15th–14th. If you update this period's start date to the 1st of the month, the system creates an adjustment period from the 15th to the end of the month. This fills the gap between the end of the current period on the 14th Aand the beginning of the next period on the 1st.

How do payroll group changes impact current, past, or future periods?

• Current periods: If the payroll grouping is modified in an unapproved period, the change is effective immediately. If the payroll period is approved, the new grouping becomes effective in the next period.
• Past periods: Payroll group changes do not affect unapproved past periods. They will retain the previous group.
• Future periods: You cannot schedule Payroll group changes in the future.

Does changing Payroll Group impact other payroll settings? 

Yes.

• When you change the pay group attribute for a legal entity, payroll periods for all groups in that legal entity reset to 1st - last of month. You can then adjust the pay period for the new groups.
• If all groups are set to 1st - last of month, there is no impact.

What happens if I don't have payroll groups, then I add them? 

Past payroll periods are unaffected. The new grouping takes effect in the current period if it is not yet approved, or the next period if the current period is approved.

How does changing the attributes visible in the Payroll table impact current, past, or future periods?

• Current periods: If you change attributes in the payroll table, the change takes effect:  
  • In the current period, if the period is unapproved.
  • In next period, if the current period is approved.
• Past periods: Payroll table attribute changes do not impact past periods.
• Future periods: Payroll table attribute changes impact future periods.

How does changing the proration method impact current, past, or future periods?

• Current periods: Proration method changes impact the current period.
• Past periods: Proration method changes do not impact past periods.
• Future periods: Proration method changes impact future periods.