Monday, May 3, 2010

How to handle reimbursements in Webpay Payroll Software?

How to handle reimbursements in Webpay?

You will find the explanation with Medical Reimbursement example.

In most companies medical reimbursements is given as an option to the employee.
Option A: The employee wants Medical Reimbursement as taxable pay component then it is to be treated as any addition (earning) type paycode. See the properties of the paycode that you should select.


Option B: The employee asks its employer to accumulate the amount and whenever she/he submits the bills, the claim should be given. If by the end of financial year the employee fails to submit the complete bills then the remaining amount should be given to the employee as taxable. To accomplish this in Webpay we create a Paycode with following properties.
In Option B Webpay will accumulate the amount and when ever you wish to give the claim you can do so. You have three options to manage reimbursement claims.

1. Reimbursement Claim Form

2. Import Reimbursement

3. Employee requests reimbursement from ESS

Let me explain Option 1 i.e. Reimbursement Claim Form: With this process you can enter the bill amount and claim amount. Webpay will automatically calculate the claim amount based on the bills submitted. Therefore you only need to enter the bills. You can also use a process available in this form i.e. "Pay in Paycode". "Pay in Paycode" allows you to insert the claim amount in another paycode which is "Variable Type", "Used for Reimbursement Claim" and "art of Gross". This is used when you want to give Reimbursement Claims along with Salary. If you do not give reimbursement claims with salary then you do not need to use this option and you also need to create the third paycode i.e. Medical Claim. Check the snapshot below for the properties of Medical Claim.




Click here to view the video on how the reimbursement bill can be entered and how to use Pay in Paycode function.


Below is the snapshot of the Pay Slip where you will find the Medical Claim Amount. However this is optional. If you do not give reimbursement claims in salary then you do not need the third paycode i.e. Medical Claim.


Import Reimbursement: Using this method you can import the claim and bill amount of the Medical Reimbursement from Import Reimbursement Claim and Bill. Secondly, if you want to pay the claim amount in salary then you need to assign the claim amount in Medical Claim paycode (the thrid paycode i.e. "Variable" and "Used for Reimbursement Claim"). You can assign the paycode using Import Salary Structure. Therefore you need to use two import methods here.

Employee requests reimbursement from ESS: Using this method the employee would send reimbursement request when she/he logs into ESS. A request will then be approved by the admin using the same form as in Point 1. The process thereafter is similar to Point 1.


Blog by BBSPL , Webpay Payroll Software
Webpay Copyright BBSPL

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