This article covers information of processing non-profit organizations’ compensations in Procountor. Processing non-profit organizations’ compensations can vary depending on the case, so the purpose of the example described in this article is to illustrate the functions behind the processes.
Processing of non-profit organizations’ compensations salary type
Income register has defined that the salary type non-profit organizations’ compensations does not belong to the area of social insurance payments.
The salary info of an employee receiving non-profit organizations’ compensations
Salary type non-profit organizations’ compensations is processed to match to the income register’s income types daily allowance paid by non-profit organization and kilometer allowance paid by non-profit organization. Because of the income types’ (daily allowance paid by non-profit organization and kilometer allowance paid by non-profit organization) default processing, no TyEL payment or subject to unemployment insurance contribution are withheld from the salary type non-profit organizations’ compensations.
If a salary type belonging to the range of insurances, is added to the salary base, TyEL payment and subject to unemployment insurance contribution are withheld from the added salary type and the calculated amounts of withholdings are marked to the row information of the salary type.
If the Non-profit organization option is selected in the field Applied special handling of travel expenses, kilometer, daily and meal allowances are allocated to the income register’s income type daily allowance paid by non-profit organization or kilometer allowance paid by non-profit organization.
In the case, where Non-profit organization is selected in the Applied special handling of travel expenses field, the travel expenses are processed by following rules:
- When the salary type kilometer allowance is selected, income taxes or insurance payments are not automatically withheld.
- The salary type kilometer allowance matches the income register’s income type kilometer allowance paid by non-profit organization. Thus, the kilometer allowance salary type will automatically be allocated to the right income type.
Exceptions in insuring
When it comes to the non-profit organization’s compensations salary type, defining the exceptions in insuring is not necessary, since the processes of the insurances have already been defined for the salary type in question. In case where the employer does not insure the employee, the exceptions should be selected in the field Applied insurance exception types. The selections in question should be carefully considered.
If the situation with the employee’s insurances varies, the exceptions in the field Applied insurance exception types should be left without selections and let the default processing of the salary type non-profit organization’s compensations make the changes automatically.
When the exceptions in the field Applied insurance exception types are be left without selections, different salary types with the obligation to insure can be added to the salary base and salary slip. The insurance contracts can be defined for the salary types on the Salary info view, and the salary type specific definitions can be made in salary base.
The definitions made in the field Applied insurance exception types are stronger than the salary type’s own insurance processes. So, if an exception is selected, for example to prevent processing of TyEL insurance, the exception covers all salary types on employee’s salary slip and salary base. The exception prevents adding the TyEL row to the salary base, and thus no TyEL insurance is withheld from any salary type on the salary base.