Total Office Management System Payroll User Guide

Total Office Management System Payroll User Guide

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LibPlus Nigeria Limited

Total Office Management System

TOM-S

Payroll Administration User Guide

January 2006

Contact: TOF Engineers & Consulting Ltd.: 56 Femi Ayantuga Crescent, Off Adelabu Street Surulere, Lagos. P.O. Box 4629 GPO Marina, Lagos. Tel: 0803-3045117 E-mail enquiries@softprotof.com,

Payroll Administration User Guide 1

1. Introduction to the TOM-S – Payroll Administration 4

2. An Overview – Terminologies and Workflow 5

2.1 The Working Period 5

2.2 Automatic incrementing of steps 5

2.3 Claims Processing: 5

2.4 Bulk Claims & Deductions Processing 5

2.5 Personnel Details Change Processing: 5

2.6 Registration and Activation of Standard Deductions 6

2.7 Payroll Assessment 6

2.8 Audit Trailing 6

2.9 Staff Auditing 6

2.10 Security and Privileges of TOM-S – Payroll Administration 7

2.11 The Workflow Payroll Production using TOM-S – Payroll Administration 7

A: Collating Payroll Information 7

B: Production of Payroll 7

C: Approval and Payment of Payroll 8

D: Start collating data for next month’s payroll. 8

3. Starting TOM-S Payroll Administration 9

3.1 Starting TOM-S Payroll Administration 9

3.2 Getting ready for payroll processing 10

4. Configuring TOM-S – Payroll Administration Module with Operational Data 12

4.1 Sequence for configuring TOM-S – Payroll Administration with operational data 13

4.2 Staff Distribution in TOM-S – Payroll Administration 14

4.3 Payscales Organisation in TOM-S – Payroll Administration 14

4.3.1 Defining Payscales Emoluments 14

4.3.2 Domestic Servants Allowanaces 15

4.4 Extending Payscales 15

4.4.1 Extending Payscale Components 16

4.4.2 Special Allowances, Special Deductions and Monetised Allowances 17

5. Personnel Data Entry and Modifications 19

5.1.1 To add details for a new employee 19

5.1.2 To modify details of an existing employee 19

5.1.3 To Validate Pending Changes 20

5.1.4 Special Cases: Affecting Promotions & Bank Account Details Changes and Retirement 20

5.1.5 View history of changes made to employee’s details 21

6. Preparing Payroll Information 23

6.1 Specifying the year and month to process payroll 23

6.2 Affect Annual Increments 24

6.3 Processing Payroll Payroll 24

6.4 Claims and Deductions 24

6.4.1 Leave Allowance Claims 25

6.4.2 Other Allowances and Deductions 26

6.4.3 Assessing Claims/Deductions for Approval/Rejection 26

6.5 Union, Thrift & Funds Deductions 28

6.6 Special Allowances and Special Deductions 28

6.7 Loans Advanced 29

6.8 Bulk (Group) Claims/Deduction Registration And Processing 30

7. Prepare Payroll for the Month 32

7.1 Processing Payroll 32

7.2 Updating Existing Payroll 32

7.3 Reviewing Payroll 33

7.4 Assessing Payroll 34

7.4.1 Interim Approval 34

7.4.2 Approval for Payment 35

7.4.3 Effects of Payroll Assessment 35

7.5 Monitoring Progress of Payroll: Payroll Production Status 35

8. Reports and Charts 37

8.1 To print payroll reports 37

8.2 Graphs and Charts 38

9. Special Payroll Operations 40

9.1.1 Closing Payroll Computations 40

9.2 Re-opening Payroll Approved for Payment 40

9.3 Unclaimed Wages 41

10. Searching Personnel and Payroll Records 42

10.1 Searching Personnel Records 42

10.2 Searching Payroll Records 42

10.3 Payroll History 43

11. Appendix 46

11.1 Tax Computation Process 46

11.1.1 Nett Pay Computations 46

Introduction to the TOM-S – Payroll Administration

TOM-S Payroll Administration is designed to automate the process of preparing payroll at the end of each month, thereby improving operational efficiency. TOM-S Payroll Administration has the following features:

  1. Easy to use with its user friendly graphical user interface (GUI). Simply selecting and clicking on objects on the interface using a mouse performs operations.
  2. Configurable as a stand-alone system or a multi-user system in a network of computers such that multiple users can share application data from several workstations.
  3. Based on a flexible pay structure, incorporating Civil Service pay structure (HAPSS & HATISS).
  4. Integrates staff auditing with payroll computation.
  5. Captures personnel details permanently on the computer with facility to keep a history of all modifications to, and variations of, personnel details.
  6. Produce salaries of all employees every month, with facilities for processing overtime and arrears claims, pro-rating of salary, affecting regular deductions due to loans, union and thrift society contributions, and other specified non-standard pay related claims/deductions; including bulk processing of claims and allowances.
  7. Generate payslips for individual staff members at the end of every month.
  8. Provides instant up-to-date access to current and historical payroll information.
  9. Allows modification of parameters that affect the payroll such as changes in tax laws and other government regulations.
  10. Allows amendments the parameters/ variables (payscale, allowances etc.) that affect the remuneration of individual staff members.
  11. Provides a simple but sophisticated change request procedure for affecting changes to personnel details, ensuring that history of changes is maintained.
  12. Provides facility to modify configuration data to handle future reorganisation of the company structure such as changing/adding new departments and sections and updates to payscales.
  13. Maintains a concise audit trail of payroll production activities.
  14. Provides standard and user defined detailed reports and graphs on payroll.
  15. Provides versions for managers to monitor payroll production activities from remote locations (multi-user version).
  16. Provides a flexible and easy to use back-up procedure.
  • The payroll databank provides a wealth of payroll information from which we can derive statistical information to inform policy making, budgeting and planning.
  1. Customisable to meet the company specific payroll operations.

To fully, and effectively, grasp the concepts and procedures presented in this document, it is strongly recommended to initiate a session of TOM-S – Payroll Administration on the computer in parallel to studying this document.

An Overview – Terminologies and Workflow

TOM-S – Payroll Administration introduces concepts describing key operations that would be performed using the payroll system. The concepts are:

  1. The Working Period
  2. Automatic incrementing of steps
  3. Claims Processing:
  4. Claims Registration
  5. Claims Assessment
  6. Bulk Claims/Deductions Processing
  7. Personnel Details Change Processing:
  8. Personnel Details Change Requests
  9. Personnel Details Change Validation
  10. Promotions Processing
  11. Payroll Assessment
  12. Registration and Activation of standard deductions (Loan, Thrift, Union & Funds)
  13. Staff Auditing
  14. Audit Trailing

The Working Period

The working period comprises of the year and the month for which you are preparing payroll. This concept is in keeping with the normal practice to produce payroll in monthly batches. TOM-S – Payroll Administration module demands that the working period should be defined.

Automatic incrementing of steps

Increments to employees’ step on his/her grade level can be done automatically depending on the employment date and, subsequently, on the date of the employee’s last promotion. The increment stops at the limit of the steps on the grade level, until the employee is promoted to another grade level. TOM-S – Payroll Administration module provides a simple facility for performing the increments automatically by simply clicking a button on one of the applications interface before you start processing payroll for the month.

Claims Processing:

TOM-S – Payroll Administration introduces an approach to processing claims (leave, arrears, overtime, monetised allowances etc) that affect payroll, ensuring the following:

  1. security and consistency of information by using a unified method for registering the claims and assessing the claims for approval or rejection;
  2. keeping a concise log of the claims to enhance auditing, enquiries and useful historical analysis of employees remuneration;
  3. simplicity of claims processing procedure to minimal errors and easy identification of errors in registration

Bulk Claims & Deductions Processing

Considering that the staff strength of your company can be in excess of 300+, it is most likely that situations will arise where groups of employees would be entitled to the same value of certain allowances such as bonus, for example. TOM-S – Payroll Administration introduces a facility for bulk processing of claims and deductions to perform group entries of claims and deductions.

Personnel Details Change Processing:

Changes to details of employees are placed under a strict auditing procedure such that, when modifications are made to details of an employee, the changes are recorded in history. Depending on the user’s access level, the changes are either reflected immediately on the record of the employee (users with VALIDATE privileges) or registered as pending changes, which are validated at a later time by a user with VALIDATE privileges.

Pending changes are assessed for approval, commitment (validation) or rejection by any user with VALIDATE privileges via the Validate function on the personnel administration module of TOM-S – Payroll Module.

The procedure for processing promotion of staff is done by the Promotions function, which generates a set of Change Requests, such as the new grade level and step, which are then processed by the Change Request Assessment function.

The history of all changes made to personnel information are kept permanently in the database and users can view/print the history of all requests registered, approved, rejected and committed, for each employee at any time.

Registration and Activation of Standard Deductions

Deductions such as loans, unions, funds and thrift deductions are deductions affected every month. Furthermore, these deductions are usually consistent in terms of amounts deducted/contributed and it would be time wasting to enter them every month when payroll need to be prepared. TOM-S – Payroll Administration allows the deduction to be registered once and the user (with appropriate privileges) only needs to activate, or deactivate, it when it is to be reflected, or suspended, in payroll.

Payroll Assessment

When a monthly batch of payroll is completed, it is customary to review the payroll and introduce cut off dates after which new claims would not be entertained. Furthermore, it is imperative to maintain the integrity of payroll data that have been disbursed to employees such that modifications to the data are not inadvertently made. TOM-S – Payroll Administration provides the means to assess globally all payroll schedules produced such that when tagged as approved or paid, the integrity of the information would be maintained.

Audit Trailing

TOM-S – Payroll Administration keeps a log of useful information on all the payroll production activities. This log of activities is called the audit trail. It is like a logbook of activities from which managers and supervisors can easily monitor the overall progress of payroll production. The audit trail includes the activities of each operator and each log is stamped with a date and time the activity that took place. Access to the facility is restricted to users with the highest access level to the payroll system.

To complement the audit trail facility, a history of key activities, such as overtime claims, leave claims, union deductions and loan deductions, are also kept to enable a more thorough audit of each employee’s remuneration history to be performed. Thus, it is easy and less time consuming to respond to queries and enquiries made by employees concerning their remuneration

Staff Auditing

TOM-S – Payroll Administration integrates staff auditing into its payroll administration. The module essentially suspends payroll production of employees who have not been confirmed as valid employees of the company. Staff audit can be initiated as frequently as your company policy dictates. Implementation is simple, but the result is powerful.

Security and Privileges of TOM-S – Payroll Administration

TOM-S – Payroll Administration provides several levels of privileges indicating operations according to division of tasks.

ENQUIRIES: View information and search for information

DATAENTRY: Data entry purposes only

OPERATIONS: Performs functions relating to calculating payroll, data entry and modifications, logging claims and deductions and configuring the application with payroll data.

VALIDATE: Supervisory Role performing higher level functions such as

  • processing claims and deductions for approval or rejection,
  • processing changes made to personnel details,
  • assessing payroll for approval and payment,
  • maintaining staff audit and

DELETEDATA: Delete data such as personnel information details.

SPECIAL OPERATIONS: Performs special operations such as

  • Close Payroll Computation on completion and payment so that no changes to existing payroll can be made
  • Reopen payroll computations after they have been closed
  • Process for unclaimed wages

HOUSKEEPER: Performs Backups and Restore of TOM-S database

SYSADMIN: Performing system administrative functions, including creating user accounts, assigning users privileges and controlling access to TOM-S.

The Workflow Payroll Production using TOM-S – Payroll Administration

A: Collating Payroll Information

  1. Collate information on new staff
  2. Collate information on claims for the month; Arrears, Leave, Overtime and Miscellaneous Claims
  3. Collate information on deductions for the month; Unions, Thrift and Loan deductions
  4. Collate employees to be promoted and remuneration to reflect in payroll
  5. Collate new payscales values, if changes are required

B: Production of Payroll

  1. Start and Log on to TOM-S using your user name and password.
  2. Initiate staff audit and complete the auditing process
  3. Set the Month and Year for payroll production
  4. Enter details of new employees.
  5. Register personnel details changes for relevant employees
  6. Register promotions details for relevant employees
  7. Process the Personnel Details Changes
  8. Register Claims for the month; Leave, Arrears, Overtime and Miscellaneous claims
  9. Register new Loan deductions, Union deductions, Thrift deductions and Funds deductions
  10. Register claims and deductions for groups of employees, if required.
  11. Process (Approve/Reject/Commit) all emolument change requests, particularly those to reflect for the month of production
  12. Process (Approve/Reject) all claims requests, particularly those for the month of production
  13. Activate/Deactivate all new Loan, Union and Thrift deductions
  14. Compute Payroll for the month of production:
  15. Update Payroll for the month of production to reflect new claims and changes
  16. Assess payroll for approval for the month of production
  17. Reviewing audit trail and history of activities
  18. Print Payroll Reports
  19. Print Payroll Graphs
  20. Print Audit Trail Reports
  21. Print activity history reports on request

C: Approval and Payment of Payroll

  1. Review Payroll Reports and Graphs
  2. Obtain approval of payroll reports from your Manager
  3. Pay the staff salaries based on the approval
  4. Mark the payroll as Paid on the TOM-S – Payroll Module
  5. Exit TOM-S

D: Start collating data for next month’s payroll.

In the manual process of producing payroll you must follow strictly a sequential (stage-by-stage) procedure. There is little flexibility to vary the procedure during production. Errors and mistakes, inevitable with the manual process, can be difficult to identify early in the process and cumbersome to rectify. For example, you must receive, validate and process all arrears, overtime and leave claims, all loan deductions, enter all new employee details, enter new details for promoted staff, process all the increments for all members of staff before you can begin to prepare (manually write) the vouchers for each employee. If you discover a mistake at the voucher preparation stage, rectification may impact on many of the manual calculations and computations you have made up to date.

TOM-S Payroll Administration simplifies the workflow and makes it very flexible. Most of the stages in payroll production can be done in any order and the errors are mistakes are minimised in production. This flexibility is made possible by the provision of an update payroll facility. You can create payroll “vouchers” early in the production process and update relevant vouchers for individual or groups of employees as and when new claims, personnel details changes, promotions and even new employee records are received and processed. You just need to ensure updates to payroll are made as one of the last processes you do before assessing payroll and printing of reports.

The stages of the workflow indicate the logical procedure and the functions taken over by the computerised system. The sequence may not necessarily be strictly followed. From the workflow chart and diagram in the subsequent pages, the Producing Payroll stages are computerised by the TOM-S – Payroll Administration. You can start the TOM-S – Payroll Administration (B1 in Producing Payroll) and immediately proceed to create payroll (B13) for the month based on standard payscale components and deductions. Then the stages A (Collating of Payroll Information) and stages B2 to B12 in Producing Payroll can be implemented at the convenience of the production staff following the most logical sequence. Subsequent changes are reflected in the payroll by updating payroll (B14) instead of creating payroll (B13). You will only need to create payroll when new employees are created in the system.

For example, you must have collated claims (A2) before registering the claims (B7); processing for approval (B11) can then be done. Thus, A2-B7-B11 is the logical sequence. To reflect these claims perform update payroll (B14). You can suspend the updating for now and a make all the required changes and new claims before updating. On completion of the updates, proceed from processing payroll (B15) downwards.

Reviewing audit trail and history of key activities can be done at any time during payroll production.

Starting TOM-S Payroll Administration

Starting TOM-S Payroll Administration

  1. Double Click on the TOM-S icon on your desktop or select TOM-S from on Programs menu.

  1. On the resulting interface (displayed above) select Payroll Administration from the Total Office Management Launch Menu.
  2. Log in with you username and password (mainuser, with no password if this is the first time). This starts Payroll Administration module and displays the interface shown below.

  1. Click Payroll Administration on the resulting interface. This displays the Payroll Administration interface depicted below

Note that all the operations you wish to perform can be accessed from the menu bar with the following menus

    1. General,
    2. Configure Payroll,
    3. Personnel Information,
    4. Claims and Deductions,
    5. Payroll Production
    6. Staff Auditing
    7. Search Engines
    8. Export Information and
    9. Info

Getting ready for payroll processing

You are now ready to use this module to prepare payroll. We will go directly into these processes assuming that you have procured TOM-S – Payroll Administration with some default data. The basic steps you follow are

  1. Enter New Personnel or Modify existing personnel records if required
  2. Specifying the month and year to process payroll.
  3. Register Arrears, Overtime and Leave Allowance Claims.
  4. Register Miscellaneous Claims/Deductions.
  5. Register Salary Prorating Requirements.
  6. Register Claims for groups of employees for the working period.
  7. Register & Activate Loan Deductions for employees
  8. Register & Activate Union Deductions for employees
  9. Register & Activate Thrift (Coop) Deductions for employees
  10. Register & Activate Fund/Investment Deductions for employees
  11. Assess all the registered claims/deductions
  12. Validate all the pending personnel details changes
  13. Affect Annual Increments for employees at anniversary of employment
  14. Compute payroll Or Update existing payroll .
  15. Review Payroll
  16. Assess Payroll
  17. Print Payroll reports

How to perform these procedures will be dealt with in subsequent chapters.

In the sequence of things, we should have configured TOM-S Payroll with operational data it will use to produce meaningful results. Data, such as payscales and related emoluments, geographical distribution of employees, tax formula, union and thrift societies you staff contribute, must already be available to perform payroll production. Finally, searching personnel and payroll history will treated followed by special operations.

Configuring TOM-S – Payroll Administration Module with Operational Data

The Personnel Information and Payroll sections of Operational Data Management And Configuration is used to configure TOM-S Payroll Administration with operational data, such as payscales, allowance types and remuneration and overtime rates thus tailoring to your specific environment.

TOM-S – Payroll Administration would have been supplied pre-configured with necessary default data, but some of the information may need to be modified as rules and regulations change. This section describes briefly the various necessary operational data and the procedures to configure the system with new data. The diagram below shows buttons indicating information that must be defined for operation.

  1. Click Operational Data Management And Configuration on the main interface Or Select Operational Data from the Configure Payroll menu. It displays the interface below.
  2. To configure TOM-S Payroll Administration you need General Information, Personnel Information and Payroll.

  1. Click General Information and enter the information indicated

  1. Click Personnel Information and enter the information indicated.

  1. Click Payroll and enter the information indicated

Sequence for configuring TOM-S – Payroll Administration with operational data

The sets of information required to configure TOM-S – Payroll Administration are related and as such some data must be defined before others. For example, you must define Departments before you specify the Sections under them. The following are the sequences that must be followed when configuring TOM-S – Payroll Module.

Group 1 Sequence: States Of Nigeria – Zones – Locations

Group 2 Sequence: Departments – Sections

Group 3 Sequence: Payscales – Grades and Step limits – Payscales

Group 4 Sequence: Banks – Bank Branches – Bank Account Details

Group 5 Sequence: All other data in any order

All groups are independent of each other

Staff Distribution in TOM-S – Payroll Administration

TOM-S – Payroll Administration assumes the following distribution of staff.

  • Employees are distributed into Departments and Sections under each department.
  • Employees are distributed into Locations under Zones.
  • Employees are categorised into groups called Payscales, which defines the various payscales employed in you company.
  • Each Payscale has its own Payscale Emoluments defined with corresponding Grades and Grade Level Steps.

Payscales Organisation in TOM-S – Payroll Administration

TOM-S – Payroll Administration supports payscales that capture a wide scope of payroll components based on standard pay structures in Nigeria. TOM-S – Payroll Administration also offers specification of different payscales for the various categories of workers you may support (eg HAPSS and HATISS payscales). The interface below defines the structure of the payscale supported.

Defining Payscales Emoluments

  1. Click Operational Data Management and Configuration on the main interface Or Select Operational Data from the Configure Payroll menu.
  2. Click “Payroll” on the operational data interface.
  3. Click “Payscales Emoluments” on the resulting form. This will display the appropriate form (above) for specifying Payscales information.
  4. The fields available on the form are Payscale, GradeLevel, Grade Level Step and the standard components of the payscale.
  5. To add details for a new grade and step, click the “Add” button.
  6. Enter Staff Category, GradeLevel, Grade Level Step and all the Annual Salary Component Values.
  7. Click the navigation button to move forward to save the information and clear the form ready for inputs for a new record. The monthly salary components will be computed on saving the information.
  8. To modify existing data for a grade and step, click “Modify” button.
  9. Use the navigation button to scroll through the records to the particular grade level and step for the specified staff category Or select the “Staff Category” and “Grade Level” from the respective buttons, then scroll to the desired step.
  10. Type in new data in the appropriate field(s). The information is saved once you move away from the record in view or click “Save” or close the form.

Domestic Servants Allowanaces

Another component of the payscale deals with domestic servants allowances due to certain category of staff. These are defined in a separate interface via clicking the “Domestic Servants” on the Payroll Operational Data form. In this form you specify the domestice servant entitlements for those grades that are entitled to domestice servants. The interface to do this is depicted below.

Note that all special allowances/deductions due to the domestic staff on the grade is due as an allowance to the beneficiary as is reflected in the inset. Also TOM-S, automatically adds leave allowance of the domestic staff to that of the beneficiary when the latter claims the leave allowance.

Extending Payscales

TOM-S Payroll Administration has got two powerful features.

  1. the ability to extend payscale components structure.
  2. the ability to define allowances and deductions personal to each employee.

The ability to extend payscale components is designed to capture any eventuality in the future to handle new allowances and deductions that may be introduced in your payscale structure.

The ability to extend allowances/deduction of the individual is designed for situations where some employees, by virtue of their schedules/appointments/postings, attract some allowances personal to them but not standard as part of payscale. TOM-S handles this effectively by allowing you to specify the allowances/deductions freely and assign emolument values to them.

TOM-S handles these functionality via

  • Extended Salary Allowances for extending payscale on basis of grade/step of payscales.
  • Special Allowances and Special Deductions for attaching allowances/deduction personal to the individual

Extending Payscale Components

In organisations such as academic institutions there are some allowances that are due to staff on various grades. For example, in academic institutions we have Excess Workload Allowances and Examination Supervision Allowances attached to the appropriate grades.

To implement this we simply specify these allowances and the appropriate emolument.

  1. Click Operational Data Management and Configuration on the main interface Or Select Operational Data from the Configure Payroll menu.
  2. Click Payroll.
  3. Click Extended Salary Components to display the interface below.

  1. Select the Payscale to extend
  2. Click Add and enter the names of the allowances (Excess Workload Allowances and Examination Supervision Allowances)
  3. Click Save, then Finish.
  4. Click Emoluments for Extended Salary Components at the base of the interface
  5. Select the Component, i.e. the new allowance.
  6. Click Prime for Component. This adds the annual and monthly allowance components with values of 0 to the payscale indicated beside the component. (You can Prime for All, to prime for all payscales if required)
  7. Repeat step 8 for all the new components you have created

For each New Salary Component

For each Grade and Step on the payscale,

  1. Click Modify
  2. Enter the annual amount in the text field labelled Annual Allowance. This would automatically compute the Monthly Allowance

Once you have completed this process, the allowance would automatically reflect on payroll of any staff on the grade/step on the payscale.

This process may be cumbersome, but you only need to do it once, or when payscale emoluments changes such as salary increases.

Special Allowances, Special Deductions and Monetised Allowances

Suppose your organisation introduces Computer Allowance as inducement for those in the Computer Department and Secretarial Allowances for secretaries attached to Ministers, Permanent secretaries and Director Generals. To implement this we create the allowance and then attach emoluments to them via Claims and Deductions prior to payroll production.

  1. Click Operational Data Management and Configuration on the main interface
  2. Click Payroll on the Operational Data Setup interface
  3. Click Names of Special Allowances to display the interface below.

  1. Click Add and enter the names of the allowances (Computer Allowance, Secretarial Allowance e.t.c.)
  2. Click Save, then Finish.

Any staff member that is entitled to these allowances will have it specified in the Payroll Production modules (Chapter 6). The specification is only done once and activated with the amount due. You simply deactivate it when the staff is no more entitled to it.

Follow same procedure for Special Deductions and Monetised Allowances

Personnel Data Entry and Modifications

Important Note: If you have procured the Personnel Information module, personnel data should be entered through the Personnel Information module. You will not be able to add new personnel details from through the Payroll Administration module. Only Payroll Allowance Details and Bank Account details of staff can be entered (as modifications) through the module. In this document we assume Payroll Administration is procured on its own.

  1. On the main interface, click Payroll Administration. This displays the Payroll Administration Interface.
  2. Click Personnel Information. To begin to enter and modify staff details.

To add details for a new employee

NB. Available only if Payroll Administration is procured without the Personnel Information modules.

  1. Click “Add” button.
  2. In each field, type in the appropriate entries for the new employee.
  • The table on the next page indicates primary information that defines the employee.
  • The information is grouped appropriately into pages identified by the tabs, namely Employment Information, Payroll Allowance Information and Bank Account Details
  1. To add photo of the employee click Insert Photo. This opens a dialog box from which you search your computers file system for the photograph of the employee
  2. Select the photograph file.
  3. Click Save so save the entry
  4. Click Finish to return the interface to original state

To modify details of an existing employee

  1. Click Personnel Information on the Payroll Administration interface.
  2. Select the employee whose detail you want to change from Employee combo box
  3. Click Modify.
  4. Click the appropriate tab such as Employment Information, Payroll Allowance Information and Bank Account Details.
  5. Enter new values in required field on the interface.
  6. Click Save to save the changes.
  7. If you have VALIDATE privileges the changes will be reflected immediately.
  • Otherwise, they are logged as Pending Changes and the Validate Changes button will be activated.
  • Click the Pending changes tab to reveal the list of changes requested for the employee (see interface below).
  1. Click Finish to return the interface to original state

NB: If Personnel information module is procured, then only Payroll Allowance Details and Bank Account details can be entered (as modifications) via the Payroll Administration module. The Pending Changes tabs will not be visible.

To Validate Pending Changes

If you have VALIDATE privileges you can assess these pending changes for approval/rejection and the affect the changes

  1. Click Pending Changes tab
  2. Notice that all the pending changes are tagged as Approved by default.
  3. If you want to reject any of the changes, double click on the record to toggle between Approved and Rejected.
  4. When you are satisfied with the validity of the changes, Click Validate Changes.
  5. All the Approved changes will be marked as Validated, and the changes will reflect on the employee’s details (Verify by clicking the appropriate table showing the respective detail).

This procedure ensures a proper audit of the changes made to employee details is available.

Special Cases: Affecting Promotions & Bank Account Details Changes and Retirement

In the case of affecting promotions, TOM-S – Payroll Administration provides a utility that unifies the process. It allows you to specify all the employee details that change for promotions, in one interface. This avoids having to specify each detail change (5 details) individually, thereby avoiding omission or errors.

  1. Click Personnel On Payroll (Full Details) on the Payroll Administration interface.
  2. Select the employee whose promotion you want to affect
  3. Click Pending Changes tab
  4. Click Affect Promotions on the on the tab.
  5. Specify the following: Promotion Date, New Staff Category, New Grade, New Step and New Designation as required
  6. Click Affect Promotion to log the related requests in the pending changes request log.
  7. Close the interface and you will see that the related details changes are logged as pending changes which can be assessed and validated as described in earlier procedures.

  • Follow the same process for bank account changes: Click Change Account Details in Step 4.
  • Follow the same process for bank account changes: Click Affect Retirement in Step 4.

View history of changes made to employee’s details

  1. Click Change History on the Pending Changes tab. This displays the interface below showing the list of all changes made to the details of the employee on the Full Details Change History tab.
  2. To see pending changes for the employee, click Pending Details Changes tab.
  3. To see the photograph history for the employee, click Photograph History tab.
  4. To see the history of changes for each detail (emolument), click Change History By Detail

Note that you can Register Claims And Deductions and view Payroll History of each employees via appropriately labelled tabs

Preparing Payroll Information

You are now ready to begin collating information to prepare payroll. The information to collate include arrears, overtime and leave claims as well as loan, thrifts and union deductions.

  1. Click Payroll Production on the Payroll Administration interface Or Select Payroll Production from the Payroll Production menu.

Notice that you have several tabs on the form each labelled according to the functions provided.

  • Compute Payroll tab (top level) with a button Process Payroll.
  • Claims And Deductions tab through which you register and process claims (leave, overtime arrears, loan deductions, special allowances, special deductions etc).
  • Charts and Graphs tab to print payroll reports and charts.
  • Statistics tab to monitor payroll progress.
  • Special Operations tab, to Close Payroll Computations, process Unclaimed Wages Affect Annual Increments.
  • Cheque Payments to enter cheque numbers to payroll if each member of staff is issued a cheque directly for payment of salaries.
  • Payroll History tab, through which you monitor the history of payroll computations.

Specifying the year and month to process payroll

Before you start processing payroll, you must specify the year and month you are processing for.

  1. Click the button Click To Specify Month and Year.
  2. On the resulting form enter the month and year for which to produce payroll.
  3. Click the button labelled Set.

Subsequent operations will be based on this new month and year until it is changed either in the way described above or when new salary schedules are created.

Affect Annual Increments

It is standard practice in the Nigerian Civil Service to affect salary step increments to employees on the anniversary of employment/appointment until he/she has reached the bar of the grade.

  1. Click Payroll Production on the Payroll Administration interface.
  2. Click Special Operations tab
  3. Click Affect Annual Increments on the tab page
  4. Click Yes in response to the message prompt

On completion, the increments should be reflected on the current step of the employee.

Processing Payroll Payroll

If at this point you have no extra information to enter you can proceed to processing payroll by clicking Process, Review and Assess Payroll on the Compute Payroll tab. The interface below is displayed.

However, in real situations you will usually have leave claims, overtime claims, arrears claims and other type of claims and deductions (loans, thrift etc) that are incorporated into payroll. So we must affect these before finally calculating payroll.

Claims and Deductions

  1. Click Payroll Production on the Payroll Administration interface Or Select Payroll Production from the Payroll Production menu.
  2. Click Claims And Deductions tab. This displays the variety of claims and deductions that you can specify for each employee.

Leave Allowance Claims

  1. Click “Claims And Deductions” tab.
  2. Click “Overtime, Arrears, Leave etc” button.
  3. Click Leave Allowance tab to give Payroll Claims Registration interface (below)
  4. Move/Select the employee who has to be paid the leave allowance
  5. Click “Add” and
  • Click Ind check box. The leave allowance amount will be displayed for the claim month and year specified.
  • Enter the Amount (if the allowance amount you want to pay is different)
  • Enter Month and Year to pay the allowance if different from the default (NB you can specify in advance).
  1. Click “Save” to save the information
  2. Return to 4) to enter another leave allowance claim for another employee
  3. Click Exit to remove the interface from focus.

The same procedure is followed to register other claims such as overtime, arrears, other allowances and deductions, monetised allowances, salary prorating and special cases of promotion and increment arrears.

Other Allowances and Deductions

Other Allowance Claims and Deductions registration and processing is the mechanism by which TOM-S Payroll Administration introduces non-standard emoluments and deductions into payroll.

Examples are affecting bonuses and refunds to members of staff or deducting some amount from the payroll for a specific (one-off for example) purpose.

  1. Click “Claims And Deductions” tab.
  2. Click Other Allowances and Deductions tab.
  3. Select the employee who has to be paid arrears
  4. Click “Add” and
  • Select Type of allowance/deduction.
  • Enter the Amount
  • Enter Month and Year to pay/deduct the amount if different from the default (NB you can specify in advance).
  1. Click “Save” to save the information
  2. Return to 4) to enter another allowance/deduction for the employee
  3. Return to 3) to enter allowance/deduction for another employee
  4. Click Exit to remove the interface from focus.

This facility provides TOM-S Payroll Administration with a very powerful and flexible means for handling various scenarios in payroll processing.

Assessing Claims/Deductions for Approval/Rejection

After entering claims and deductions, your superior must assess them for approval/rejection. He/she must have VALIDATE permissions for payroll module.

Each claim/deduction type has its own assessment interface and procedure is simple, as follows:

  1. Click Process Claims and Deductions for Approval/Rejection on the Claims And deductions tab on Payroll Production interface.

  1. Click the button indicating the type of claim you want to assess.
  2. Select the claim to process.
  3. Click Approve or Reject as required.

A typical situation for leave allowance claims processing is displayed below.

Tip. Since it is unlikely that most of the claims you register will be wrong or rejected, a quick way to process will be to Approve All the claims and then begin to Reject the claims that are unacceptable.

Union, Thrift & Funds Deductions

  1. Click “Claims And Deductions” tab.
  2. Click “Union, Thrift And Investments” to give Union, Thrift and Investments interface (below).
  3. Click Union Deductions Register tab.
  4. Move/Select the employee whose contribution you want to register.
  5. Click “Add”.
  • Select the Union.
  • Enter the Amount or % of Basic Salary to contribute.
  • Click Activate to activate the monthly deduction of the contribution

You must be a user with VALIDATE privileges to Activate a contribution, so inform appropriate user to activate the contribution.

  1. Click “Save” to save the information
  2. Return to 5) to enter the contribution to another union for the employee
  3. Return to 4) to enter union contributions for another employee
  4. Click Exit to close the interface.

The same procedure is followed for cooperatives (thrift) societies and investment funds contributions. Pension Contribution profile is where you personalised pension formulae for each employee.

Special Allowances and Special Deductions

  1. Click “Claims And Deductions” tab.
  2. Click “Special Allowances and Special Deductions” to give the interface (below).
  3. Click Special Allowances Register (or the Special Deductions Register) tab.
  4. Move/Select the employee whose allowance (or deduction) you want to register.
  5. Click “Add”.
  • Select the Allowance Name.
  • Enter the Amount or % of Basic Salary to contribute.
  • Click Activate to activate the monthly deduction of the contribution

You must be a user with VALIDATE privileges to Activate a contribution, so inform appropriate user to activate the contribution.

  1. Click “Save” to save the information
  2. Return to 5) to register another allowance for the employee
  3. Return to 4) to enter register allowance for another employee
  4. Click Exit to close the interface.

Loans Advanced

It is customary to provide your staff with loan packages as part of the welfare packages in your organisation. Loans such as salary advance and car refurbishment loans are customary. Loan records, including repayment policy on the loans, are recorded in TOM-S in the same manner as leave allowance and overtime claims were recorded.

  1. Click “Claims And Deductions” tab on the Payroll Production interface
  2. Click “Loans Advanced” to give Union, Thrift and Investments interface (below).
  3. Move/Select the employee whose contribution you want to register.
  4. Click “Add”.
  5. Select the Type of loan (e.g. Salary Advance, Motor Vehicle etc).
  6. Enter the loan details
    1. Principal amount of the loan
    2. Date procured
    3. Months To Pay.
    4. Interest Rate
    5. Month To Start payment
    6. Year to Start payment
    7. Month To End payment
    8. Year to End payment
    9. Monthly Repayment amount
    10. Total To Pay
  7. Click Activate to activate the monthly deduction of the loan from payroll.

You must be a user with VALIDATE privileges to Activate repayment

  1. Click “Save” to save the information
  2. Return to 4) to enter another loan for the employee
  3. Return to 3) to enter a loan for another employee
  4. Click Exit to close the interface.

You can also log loans whose repayments would start in the future.

Bulk (Group) Claims/Deduction Registration And Processing

As mentioned in a previous chapter there are situations where claims and deductions are uniform for all or a group of employees. In such cases it will be inconvenient to register the information individually for each employee. Bulk processing of claims and deductions is therefore useful. This in provided through the button “Group Variations”.

  1. Click “Claims And Deductions” tab on the Payroll Production interface
  2. Click “Group Claims And deductions” on the Claims And Deductions tab
  3. Select the required emolument type in the option group labelled Emolument Type.
  4. Select the grouping of employees to affect from the option group labelled Employee Group.
  5. Select the corresponding group of employees to affect.
  6. Specify details of the claim/deduction in the activated text boxes and option buttons
  7. Click Enter Claims when you have specified the claim/deduction.
  8. Click Process Claims to process the claims as in 5.4.3.

Prepare Payroll for the Month

You have now finished collating all claims and deductions and have assessed them for approval to be incorporated in the payroll for this month. You now have to prepare the payroll for the month.

Processing Payroll

  1. Click “Payroll Production” in the Payroll Administration interface Or Select Payroll Production from the Payroll Production menu.
  2. Click Process, Review and Assess Payroll on the Compute Payroll tab to display the Process Payroll form below.

  1. Enter the month and year (if you require a different one). This would become the month and year on which subsequent payroll operations would be based.
  2. Select from the appropriately labelled combo box, the group of employees for which to produce payroll for the specified month: You have the choice of producing payroll for
  • All Employees
  • By Location
  • By Zone
  • By Bank
  1. You can extend the criteria by clicking Extend Criteria tab to specify for
  • an individual employee
  • all employees on a payscale
  • all employees in a department
  • all employees in a section
  1. Click COMPUTE Payroll
  2. On completion (this may take some time), click Yes on the prompt to review the full details of the payroll computations for each employee.
  3. You can review and print the payroll immediately if no additional information need to be included in the payroll.

You must UPDATE payroll after the first computation so that new/modified claims and deductions or changes to employee can be included in payroll simply by updating the existing computations.

Updating Existing Payroll

If after preparing payroll for a month you may have new claims and deductions to incorporate or a new employee is introduced or changes are made to employees details, you must reflect these in the current payroll. In this case you Update the payroll to reflect these new information.

  1. Repeat Step 5 above
  2. Click UPDATE Payroll in step 6
  3. On completion, click Yes on the prompt to review the full details of the payroll computations for each employee.
  4. You can review and print the payroll immediately if no additional information need to be included in the payroll.

Review payroll would show the new claims and changes to employee emoluments are reflected.

It is recommended that updating payroll for all employees is performed as the final step prior to printing the payroll for the working period. This would ensure consistency of payroll with current claims, deductions and changes to payroll information.

Reviewing Payroll

You are usually given the choice to review the payroll computations after computation of payroll completes. Alternatively, the review can be done independently of these procedures, provided data exists for the month/year specified. To do this

  1. Click “Review Payroll” on the Process Payroll form. This would display a form showing the full details of the components of the payroll for each employee (see below).
  2. Use the navigation buttons to scroll through to view the details for other employees or alternatively, select the employee’s details you want to view from the combo box labelled “Employee”

From this interface, you can assess the payroll for employees individually

  1. Click Approve to affect interim approval of the particular employee payroll in focus
  2. Click Approve for Payment to approve the payroll of that employee for payment

Assessing Payroll

When you complete computing payroll, your superiors or auditors are expected to check your computations and approve or reject the payroll schedules you have prepared. This function is handled by the Assess Payroll facilities.

Interim Approval

To affect interim approval of payroll and temporarily prevent updates.

  1. Click “Assess Payroll” on the Process Payroll form.
  2. Enter the year and the month to assess payroll (if different from the default displayed).
  3. Select the group of employees for which to assess payroll.
  4. Click the button labelled “Interim Approval of Payroll”.

To reject payroll of selected employees

  1. Click “Reject/Open Approved Payroll” to reject the payroll for the selected group of employees.

Approval for Payment

After interim approval and you are ready to pay, you must approve the prepared payroll for payment.

  1. Select the group of employees.
  2. Click “Approve Payroll for Payment”
  3. You will be prompted accordingly on completion of each function
  4. Respond by clicking Yes or No as desired.

Effects of Payroll Assessment

The overall aim of payroll assessment is to ensure integrity of payroll information. Payroll calculations that have been marked as Approved cannot be updated with new information such as new claims/deductions and changes to employee details. They can however be rejected/opened to allow updates in employee information to be reflected.

Payroll calculations that have been marked as Approved For Payment cannot be updated with new information and cannot be rejected, since the salaries would by then have been paid.

We however provide a function Re-Open Payroll Approved For Payment with the means of re-opening Approved For Payment schedules to allow updates, should it be necessary. Only users with SPECIAL OPERATIONS privileges are allowed to do this. This function will only be available to a high ranking officer in your institution to prevent undue violation of the integrity of payroll data.

Monitoring Progress of Payroll: Payroll Production Status

At any point in time during processing you can assess the status of payroll production for the current month. This provides you with a guide to payroll progress by presenting statistics in a unified manner.

  1. Click Statistics tab on the Payroll Production interface
  2. Click Payroll Production Status on the tab. This will display the production statistics interface below.
  3. You can view all information on payroll you have been producing, including statistics of all claims and deductions.

.

Reports and Charts

To print payroll reports

  1. Click “Payroll Production” in the Payroll Administration interface.
  2. Click Payroll Reports The interface below is displayed.
  3. Select the Report Category, either
  • Payroll Not Approved for Payment (default)
  • Payroll Approved for Payment
  • Claimed Payroll.
  1. Select a report to print/preview.
  2. Enter the year and month of the period you want to print.
  3. Select the group of employees for which the report will be printed (All Employees is default)
  4. Click Preview to preview the report Or click Print to print the report on the printer.

The following table lists the reports available as standard with TOM-S. Customised reports can be designed based on your specifications.

ReportDesc
Arrears Claims History
Comprehensive Papslip Grouped By Location
Comprehensive Payslip Grouped By Zone
Coop Contributions History
Coop Contributions to all Cooperatives
Employees Emolument Change History
Employees Salary History
Employees Salary Prorating History
End of Year Summary for Earnings
End of Year Summary of Allowances
End of Year Summary of Gross Pay
Fund Contributions History
Fund Contributions to all Unions
Leave Allowance Claims History
Loan Repayments History
Miscellaneous Claims History
Monthly Totals of Tax, NHF, Thrift and Union Deductions
NHF Deductions
NHF Deductions grouped by Department
NHF Deductions grouped by Location
NHF Deductions grouped by Zone
Overtime Claims History
Payment Schedules to Banks
Payroll Summary
Payroll Summary grouped by Department
Payroll Summary grouped by Location
Payroll Summary grouped by Zone
Staff List
Staff List Grouped By Department, Sevtion and Location
Staff List Grouped by Grade Level
Summary of Payroll Schedules (LAC Format)
Tax Deduction History
Tax Deductions
Tax Deductions grouped by Department
Tax Deductions grouped by Location
Tax Deductions grouped by Zone
Tax Deduction History Grouped by Employees, Location, Zone & Year
Totals of Payroll Summary grouped by Department
Totals of Payroll Summary grouped by Location
Totals of Payroll Summary grouped by Zone
Union Contributions History
Union Contributions to all Unions

Graphs and Charts

Bar charts, PIE charts and plots can be produce to give a graphical picture of payroll trends over the year and distribution within employee groups such as departments and sections. Charts and plots are based on payroll that has been approved for payment.

For PIE Charts

  1. Click “Payroll Reports And Charts” tab in the Payroll Administration interface.
  2. Click Graphs and Charts. This displays Payroll Charts and Plots interface.
  3. Select the type of graphical output you want (PIE Charts, Bar Charts and Plots).
  4. Click PIE Chart. This will display an option group PIE Chart Distribution.
  5. Enter the year and month for which you want to see the distribution
  6. Select the PIE Chart Distribution for the PIE chart.
  7. Click Preview to preview the graphs Or Print to print the graph.

For Bar charts and Plots

  1. Click “Payroll Reports And Charts” in the Payroll Administration interface.
  2. Click Graphs and Charts. This displays Payroll Charts and Plots interface.
  3. Click Bar Chart. This displays an option group Plot/Bar chart group.
  4. Select the year for which you want to see the trend
  5. Select the employee group for which to plot the Bar chart trend
  6. Click Preview to preview the graphs Or Print to print the graph.

Special Payroll Operations

Special Payroll Operations are functions that can only be performed by users with SPECIAL OPERATIONS privileges, which would typically be Directors and Departmental Heads. Those functions are

  • Closing Payroll Computations
  • Processing Unclaimed Wages

Closing Payroll Computations

The Close Payroll Computations function provides a lock to payroll of the specified month. When closed for a particular month, you will not be able to compute payroll for that month. This protects the overall integrity of information by preventing the creation of payroll after you have completed all activities for that month.

  1. Click Special Operations tab on the Payroll Production interface
  2. Click Close Payroll Computations on the Assess Payroll interface.
  3. Specify the Month and the Year to close.
  4. Click Close Payroll.

  1. You can reverse the operation via Open Payroll.

Also, this function will only be available to a high ranking officer in your institution to prevent undue violation of the integrity of payroll data.

Re-opening Payroll Approved for Payment

Payroll calculations that have been marked as Aproved cannot be updated with new information. They can however be rejected/opened to allow updates in employee information to be reflected. Payroll calculations that have been marked as Approved For Payment cannot be updated with new information and cannot be rejected, since the salaries would by then have been paid.

We however provide a function Re-Open Payroll Approved For Payment with the means of re-opening Approved For Payment schedules to allow updates, should it be necessary. Only users with SPECIAL OPERATIONS privileges are allowed to do this. This function will only be available to a high ranking officer in your institution to prevent undue violation of the integrity of payroll data.

  1. Click Assess Payroll on Payroll Production interface
  2. Enter the year and the month to assess payroll (if different).
  3. Select the group of employees for which to assess payroll.
  4. Click Re-Open Payroll Approved for Payment on the Assess Payroll interface.

Remember to re-assess the payroll when completed . This procedure will not work if payroll of the month has been closed.

Unclaimed Wages

TOM-S – Payroll Administration provides the facility to manage unclaimed wages. It simply marks the respective payroll vouchers as unclaimed.

  1. Click Special Operations tab on the Payroll Production interface
  2. Click Process Unclaimed Wages, to display the interface below.
  3. Specify the year and the month.
  4. Select the Employee whose wage is unclaimed
  5. Click Set As Unclaimed Wage (To Reverse Reset as Claimed Wage).
  6. To view the list of unclaimed wages, click View Unclaimed Wages List.

Searching Personnel and Payroll Records

Searching Personnel Records

This module is the search engine you use to search through the database of employee records.

  1. Click Personnel On Payroll (List) button on the Personnel Administration interface to display the Personnel Search interface.
  2. Click Search on the bottom right hand corner of the Personnel List interface.

  1. Specify the search criteria in appropriate text boxes on the Basic Search tab. (enter * in the SurName text box to obtain all employees in the database).
  2. To extend search criteria click Extend Search tab, and specify your criteria
  3. Click “Search” to query the database. The resulting records will be displayed on the list labelled Search Results and the number of records displayed as a prompt (and on a text box above the list).
  4. To obtain the full details of a particular employee on the list, Double–click on the record.
  5. Click Display List to display the employees based on the search criteria in steps 3 and 4. You have the choice to display the list or full details of the employees.
  6. Click Preview/Print to preview a report on the list of employees the meet the search criteria.

Searching Payroll Records

TOM-S – Payroll Administration provides a flexible search engine to perform general search on existing payroll information in the database.

  1. Click “Payroll History and Search ” on the Payroll Administration interface.
  2. Click “Payroll History Search” on the resulting interface to invoke the interface below

  1. Specify the search criteria in the text boxes on the Basic Payroll Search tab
  2. To extend search criteria, Click Extend Payroll Search tab and make specifications
  3. Click “Search”. This displays the results of the search on the list labelled Search Results.
  4. Click “Display Details” to display full details of the search
  5. Click Preview Or Print to preview or print the results of the search.

This search engine facility is a powerful tool designed to offer extensive querying options to assess and analyse payroll production progress and history.

Payroll History

When operating TOM-S – Payroll Module, the system keeps a history of the key payroll production computations. The Payroll History and Search function of TOM-S – Payroll Administration provides the means for viewing the history of the payroll production for all employees: TOM-S – Payroll Administration provides the history of the following, for each employee,:

  1. Salary history
  2. Arrears and Overtime claims history
  3. Leave Allowance claims history
  4. Other Allowance And Deductions history
  5. Salary Prorating history
  6. Thrift, Union and Funds Deductions history
  7. Loan Deductions history
  8. Personnel Details Changes history
  9. Click “Payroll History” tab on the Payroll Production interface Or Select Payroll History from the Payroll Production menu.

  1. Click the preferred activity whose history you want to view. The options are as follows.
  • Payroll History Search
  • Claims And Deductions History
  • Salary and Details Change History
  • Loans Repayment History
  1. As an example, click Claims And Deductions History in 2) to display the form below.
  2. Scroll through the list of employees or select the employee from the combo box labelled “Employee”.
  3. Click the tab indicating the particular claim or deduction history you want to view. The choices are
  • Arrears
  • Overtime
  • Leave
  • Special Allowances
  • Other Claims And Deductions
  • Thrift Deductions
  • Union Deductions
  • Fund and Investments Deductions
  • Special Deductions
  • Loan Repayments
  1. Follow the same procedure for other claims/deductions.

In Step 3, click Salary and Details Change History to produce interface below

To Print or Preview the history of the activity in report form:

  1. Click Print/Preview on the interface showing the history
  2. Select the required report from the combo box labelled “Report”
  3. Enter the period over which to print the history
  4. Click Preview to preview the report on the screen Or Print to print the report on the attached/specified printer.

Appendix

Tax Computation Process

Nett Pay Computations

Nett Pay = Gross Pay – Total Deductions

Where

Gross Pay = Total Earnings + Total Allowances

Total Earnings = Basic Salary + Basic Arrears + Transport Arrears + Rent Arrears + Other Arrears + Acting Allowance + Overtime Allowance + Other Earnings

Total Allowances = Housing Allowance + Transport Allowance + Meal Allowance + Utility Allowance + Dress Allowance + Entertainment Allowance + Quarters Maintenance Allowance + Education Allowance + Extended Salary Allowances + Gift Allowance + Robe Allowance + Leave Allowance + EmpProvPension Allowance + Other Allowance + Bonus + DomesticAllowance + Special Allowances + Monetised allowances

Total Deductions = Tax Deduction + NHF Deduction + Staff Bus Deduction + Loan Deduction + Union Deduction + Thrift Deduction + Fund Deduction + Other Deduction + Special Deductions

Note: The components of salary are those supported by the standard TOM-S – Payroll Module. Customisation to meet your needs may add new components or suspend existing components.

Tax Computation

The following is the basic procedure employed to compute the tax paid on salary.

  • Extract and sum the taxable amount from all the standard allowances on the payscale, if the allowance is above the tax-free limit.

Taxable Standard Allowance = (Limit – Standard allowance)for all standard allowance

Taxable Pay = Basic Salary + Taxable Standard Allowance

  • Tax is computed on the Taxable Pay using the Tax Fomula define in the Application Setup.

Tax computation meets the Inland Revenue standard for the Civil Service Pay Structure and has been tested for validity and accuracy.

Provision to tax all other allowances and extend tax equation is available in TOM-S – Payroll Administration.

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