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Question on Payroll Periods

former_member32001
Product and Topic Expert
Product and Topic Expert
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259

Hi,

Is it always mandatory to have monthly payroll period as first day of the calendar month?

Can it start for example from 26th of the previous month to 25th of the current month?

Would you please help list the benefits of having first day of the calendar month till month end versus having 26th of the previous month till 25th of current month as payroll periods.

Is there any impact on any reporting or configuration if payroll period is between 26th of previous month to 25th of current month.

Note: Inlegacy system the period is currently being followed as 26th to 25th. There is no issue from FI side to have this date also no issue from any Legal aspect.

Best regards,

Sanjay

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udaykumar_kanike
Active Contributor
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Hi Sanjay,

            It is absolutely valid to set payroll period from any date of previous month to any date of current month. The basic purpose of maintining payroll period is to give enough time to process salary for current month. Say for example in your case, payroll period is 26th of previous month to 25th of current month. That means payroll team has 5days to process the salaries of employees.

It could be different in different organizations. In our case, our payroll period is from 16th or previous month to 15th of current month. They will take into account only those number of days between these dates as working days and that is what is displayed on your payslip.

As far as my knowledge, there are no special advantages of starting payroll period from 1st of every month or from any other day of the month except that payroll team want enough time to process salaries.

Hope it helps.

Regards

Uday

former_member32001
Product and Topic Expert
Product and Topic Expert
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Hi Uday,

Thanks for reply.

So there is no disadvantage too if payroll period starts from 26th to 25th right?

Since they want to go for positive time with overtime and thus actual time what ever is recorded between 26th to 25th needs to be paid.

Any specific changes in Payroll Schema to be done if the period is from 26th to 25th?

Note: This is for UAE.

Best regards,

Sanjay