⚙️Settings of pay codes and accounting for ATK/ATF agreements in HRM Payroll

Pay codes for ATK

Pay codes for ATF

System fixed pay codes

Accounting of ATK/ATF debt

Show balances on payslip

Export balance to TIme

 

Pay codes for ATK

370 - Working time account, paid compensation

This pay code is used for employees who have chosen to receive a paid compensation.

On the tab Payroll you set the pay code to decrease the balance of money and hours. The unit for the pay code should be hours.

The pay code should not have a formula.

371 - Working time account, pension provision

This pay code is used for employees who have chosen extra pension provision.

On the tab Payroll you set the pay code to decrease the balance of money and hours. The unit for the pay code should be hours.

The pay code may need to be linked to an additional pay code (see example pay code 376) with a formula if, according to the agreement, the pension provision should be increased and you wish to apply this increase during payroll preparation.

372 - Working time account, paid time off

This pay code is used for employees who have chosen to take paid day off.

On the tab Payroll you set the pay code to decrease the balance of money and hours. The unit for the pay code should be hours.

You also need to add a formula for calculating the price per hour for a day off. Normally, the price per hour is calculated as earned money divided by earned hours.

373 - Working time account, payment

This pay code is used for employees who have not taken all paid days off when the withdrawal period has ended. At the start of a new withdrawal period, this pay code is used for payment of remaining money/hours.

On the tab Payroll you set the pay code to decrease the balance of money and hours. The unit for the pay code should be hours.

The pay code should not have a formula.

376 – Working time account, ATK pension increment

The pay code is used for employees who have opted for extra pension provision, to add an increment to the earned amount.

The pay code does not need to be set to decrease the balance for ATK/ATF and does not require any unit in the Payroll tab.

You need to add a formula for calculating the increment (in the example below, the earned amount from pay code 371 is increased by 5.76%).

563 - Final salary working time account qualifying period

This pay code is used for payment of the qualifying period's earned amount at final salary.

The pay code does not need to be set to decrease the balance for ATK/ATF or have a formula.

564 - Final salary working time account withdrawal period

This pay code is used for payment of the withdrawal period's remaining amount at final salary.

On the tab Payroll you set the pay code to decrease the balance of money and hours. The unit for the pay code should be hours.

The pay code should not have a formula.

565 - Final salary working time account selected period

This pay code is used for payment of the selected period's earned amount at final salary.

The pay code does not need to be set to decrease the balance for ATK/ATF or have a formula.

Pay codes for ATF

350 - Shortening of working hours, paid compensation

This pay code is used for employees who have chosen to receive paid compensation.

On the tab Payroll you set the pay code to decrease the balance of hours. The unit for the pay code should be hours.

The pay code requires a formula for calculating the price per hour according to the collective agreement's calculation. In the example below, monthly salary and a divisor are used.

351 - Shortening of working hours, pension provision

This pay code is used for employees who have chosen extra pension provision.

On the tab Payroll you set the pay code to decrease the balance of hours. The unit for the pay code should be hours.

The pay code requires a formula which calculates the size of the pension provision to be made based on the earned hours according to the collective agreement.

352 - Shortening of working hours, paid time off

This pay code is used for employees who have chosen to take paid days off.

On the tab Payroll you set the pay code to decrease the balance of hours. The unit for the pay code should be hours.

The pay code requires a formula for calculating the price per hour according to the collective agreement's calculation. In the example below, monthly salary and a divisor are used.

Keep in mind that if you have monthly paid employees, you also need a pay code for deductions when someone takes ATF as leave, according to the same principle as, for example, sick leave deductions.

353 - Shortening of working hours, payment

This pay code is used for employees who have not taken all paid days off when the withdrawal period has ended. At the start of a new withdrawal period, this pay code is used for payment of remaining hours.

On the tab Payroll you set the pay code to decrease the balance of hours. The unit for the pay code should be hours.

The pay code requires a formula for calculating the price per hour according to the collective agreement's calculation. In the example below, monthly salary and a divisor are used.

560 - Final salary shortening of working hours qualifying period

This pay code is used for payment of the qualifying period's earned hours at final salary.

The pay code does not need to be set to decrease the balance for ATK/ATF or have a formula.

561 - Final salary shortening of working hours withdrawal period

This pay code is used for payment of the withdrawal period's remaining hours at final salary.

On the tab Payroll you set the pay code to decrease the balance of hours. The unit for the pay code should be hours.

The pay code should not have a formula.

562 - Final salary shortening of working hours selected period

This pay code is used for payment of the selected period's earned hours at final salary.

The pay code does not need to be set to decrease the balance for ATK/ATF or have a formula.

System fixed pay codes

For the system to be able to generate payroll transactions during year-end routines and for final salary, you must specify which pay codes are to be used for what under Administration – Settings – System fixed pay codes.

Those marked in red below are used for ATF, and those marked in green are used for ATK. The pay code numbers in the sample image are those described in the previous section.

Accounting of ATK/ATF debt

If you want to account for an ATK/ATF debt, you need to make some settings under Administration > Settings > Accounting and debt management.

On the tab Accounting, under the section Settings for accounting of, there are two separate parts where you need to specify posting settings.

One is ATK/ATF debt (see the image below), and the other is Employer contributions on ATK / ATF debt. For both of these, you specify which account and contra account should be used, but also whether you wish to allocate the accrued debt to, for example, the employee's cost centre according to the allocation in the employee register.

Show ATK/ATF balances on payslip

You can choose to show ATK/ATF balances on the payslip for the employees. This is set under Administration > Payroll runs, tab Payslip.

In the list of balances, the following balance types for ATK/ATF are available.

• ATF (Hours) – Qualifying period
  To display earned hours in the current qualifying period for ATF.
• ATK (Amount) – Qualifying period
  To display earned amount in the current qualifying period for ATK.
• ATK/ATF (Hours) – Withdrawal period
  To display remaining hours with paid leave in the current withdrawal period. Applies to both ATK and ATF.
• ATK (Amount) – Withdrawal period
  To display remaining amount in the current withdrawal period for ATK.

For all balance types, you can optionally show the payroll period's ingoing, outgoing, or period's earned/taken out balance on the payslip.

A tip is also to specify an Alternative text that makes it easy for your employees to understand what is shown on the payslip.

Export ATK/ATF balances to HRM Time

If you use Flex HRM Time, it is common to have a balance there for remaining paid leave for ATK/ATF. It is then recommended to export balances from Flex HRM Payroll to Flex HRM Time on an ongoing basis each payroll period to keep balances in Time up to date. In this way, you will automatically have balances in Time when you start a new withdrawal period in HRM Payroll (when the payroll run is settled).

You set this up under Administration > Payroll runs, tab Balance export.

Under Balance in salary you can choose one of these two:

• ATF (Hours) – Withdrawal period
  Export of remaining hours for ATF in the withdrawal period.
• ATK (Hours) – Withdrawal period
  Export of remaining hours for ATK in the withdrawal period.

In the column Balance in time you select which balance in HRM Time should be used.