13th Payday Calculation Procedure

SwissSalary supports the calculation and disbursement of the 13th Payday in reporting. Six different types and dates are described in this Manual:

•Calculation and Disbursement with Down-payment for November (1.2.1)

•Calculation and Disbursement with Pay Process for November (1.2.2)

•Calculation and Disbursement after Pay Process for November as a additional pay run Process (1.2.3)

•Calculation and Disbursement with Down-payment for December (1.2.4)

•Calculation and Disbursement with Pay Process for December (1.2.5)

•Calculation and Disbursement after Pay Process for December as a additional pay run Process (1.2.6)

This Manual describes in detail the settling of individual pay process and available control features. You only have to take note of the chapter relevant for your company. Basically, the 13th Payday can be reported and disbursed at any time. Take note of Chapter  Individual Disbursement of the 13th Payday During the Year.   

IMPORTANT NOTES AND TIPS:

- Please note that portions of the 13th Payday (pro rata) already paid out during the year are automatically taken into account. Manual reduction is not necessary.

- Should the disbursement of the 13th Payday be rounded up or down to the next CHF 100.00? It can be set accordingly to the disbursement ST in the Function tab in the salary type card. Note that rounding the disbursement salary type up or down results in differences for FIBU and cost accounting provision.

Rounding Precision:

0.05 = rounding to CHF 0.05 precisely

0.50 = rounding to CHF 0.50 precisely

1.00 = rounding to CHF 1.00 precisely

100.00 = rounding to CHF 100.00 precisely

etc.

Type of rounding:

Commercial = financial rounding (default)

Round up = always round up

Round down = always round down

- Companies that use the “Item transfer to the following month” disbursement type (expenses/allowances of the previous month will be taken into account in the following month) cannot use the Down-payment for November/December calculation methods.

- The descriptions in the manual mainly refer to employees with monthly wages. We recommend that you payroll hourly-paid employees either with the November pay run (at the beginning of December), as an additional pay run after the November pay run or with the December pay run. Bear in mind that the provisions for January - November are only available at the end of November for hourly-paid employees. The remaining payment of the 13th monthly wage can only be made with the December pay process and the 13th monthly wage should always be disbursed with this wage. Calculate the disbursement as described in Calculation and Disbursement with Pay Process for December This guide can also be used for disbursement using the pay process for November.

- Not all parts of the 13th Payday are recorded yet for disbursement methods according to para. 1.2.1 - 1.2.4. This means that the pay process for December may even lead to a small back payment or even to a reduction also. It is not an automatic process and must be initiated manually. The procedure is described in Chapter “Calculation and Disbursement with Pay Process for December”. Back payments can be made provided you still enter the required salary types in the pay process for November or December. Reductions can be made if employees resign in December and have already received the full 13th Payday with the pay process for November. You decide how you want to proceed in these cases (disburse/not to disburse). The amounts already disbursed will be taken into account during an additional settlement in December.

- Did you make any changes to the obligations (13th MW) before the 13th Payday disbursement? As result, a difference between the provision in the FIBU/cost accounting versus the actual disbursement occurs. Using the salary type list A4P or A4L under the Statistics reports, you can compare the two salary types of the 13th Payday disbursement and the provision of the 13th Payday. The difference is cleared manually in the FIBU or cost accounting.

TIP: Take sufficient time for the 13th Payday control. Do not just correct the proposed amounts manually, but check the source of the differences. Calculate the disbursement from the system until the numbers are correct according to your provisions. By setting up obligations once, the provisions will correspond to the disbursement 1:1 next year and you will need much less time for control.

- Please note that special settings (debt recovery actions, salary assignments, collection agencies, child allowances to third-party addresses, etc.) in employees’ payment addresses (maximum amounts) are also taken into account during the 13th Payday disbursement. If, for example, the entire 13th Payday or its portion is to be disbursed to a particular account, e.g. enforcement office, keep in mind that you will accordingly increase this month's maximum amount for these payment details. Take special care of these employees' Paycheck so that the correct amounts are paid to the correct payment address.

- Do you use automatic balance compensation for employments/resignations? Have you recorded a resignation date by the end of year for employees? Should these employees not be included in the current disbursement of the 13th Payday? Then temporarily put a “Blocked” check mark for these employees in the Personnel card. They will be excluded this way from payroll processing and it will be ensured that these employees receive no 13th Payday. You can also have the portion of the 13th Payday calculated for all employees and remove the entry from the Salary journal for employees not currently receiving the 13th Payday disbursement. You must then initiate the disbursement again at the desired time.