Edit or create a new labor union
To create a new labor union, go to Management > Salary info > Labor union and click Create a new labor union.
To create a new labor union or to edit the information, the user must have all rights to Supplier register and Payroll accounting (all salary functions).To view the information, the user must have viewing rights to Supplier register and Payroll accounting (all salary functions).
To create a new labor union, go to Management > Salary info > Labor union. Select Create a new labor union from the Select or create a new labor union drop-down menu and name it.
In this section, fill out the labor union IBAN bank account number and BIC code.
Non-mandatory information includes Company ID, Labor union number, and Labor union department.
Labor union can only have one bank account. Labor unions cannot be linked to one another.
In this section, you can fill out a fixed rate for the union fee for each employee.
Payment limits per employee
In this section, you can define the maximum and minimum yearly fee sums to be collected from the employee.
Company level bank reference codes
The selected year can be given either monthly or yearly bank reference codes.
Reference code selection criteria
This selection defines what date determines which reference number is selected from the company level reference codes to the purchase invoice; salary payment date (Salary slip payday) or the payment period end date (Salary slip payment period end date).
Adjustment history records the information of any users who have edited the labor union bank account number.
Creating a labor union automatically creates a supplier to the supplier register. The labor union bank account number and name can be edited either on the Labor union view on through the supplier register. The edited bank account and name will update on both views.
Adding a labor union to the employee
- In Employee register view, select the person and go to the person’s salary info view. Start by selecting Add labor union and select the labor union from the drop-down menu.
- If required, change the labor union department in case the employee belongs to a different department than the default.
- If the membership id is known, you can enter it to the Membership id field.
- Fill in the Membership start date. It is mandatory.
- Fill in the Membership end date if known. If you want to add a new labor union, the end date of the old membership end day must be added. Info button of the field states: 'Note that the Membership end date might need to be later than the employment end date, especially ifcreating a union fee reporting file.' If employment ends for example 31.3. but last salary payment is in April, the membership end date needs to also be in April as otherwise the file upload might not work, if the end date is before the report start date.
- Calculation method comes from the labor union settings.
- In the Explanation field you can enter information like "Employment ended" and it will show up in the union fee report.
- When adding salary data for a totally new employee, especially the union fee data, you'll see the related salary type in the salary base only once you have saved the data, ie when salary base is created.
By clicking Labor union settings, you can check the settings that exists behind the labor unions (do this only after you have saved the settings).
Behind the Union fee history -button, you can add a union fee sum that have been collected elsewhere e.g., in previous company during the same year. With this information we can track e.g., the max yearly fee limit that we are allowed to deduct during the year. Also, if you take automated union fee functionality into use in the middle of the year, please also add the sum that has been collected with a different salary type. That also in the case of having max yearly fee limit.
In this view you will also see the salary slips which had union fees, so that the monthly and yearly limits can be tracked.
The button is greyed out if changes in the view haven't been saved, or if manual calculation is in use.
Prior data -button is visible if the employee had some data in the previous labor union view at the time of releasing this feature (version release 69). You can utilize the data when creating a new labor union setting and adding them behind the employee.
Automated union fee calculation
When adding a labor union which uses the new automated calculations, Procountor checks if there is an old salary type (6040 or 6041) in the salary base and suggests the removal of it and replacing it with new salary type 6042 Trade union fee, fixed (automated calc.). If you cancel the process at this point, you need to remove the old salary type manually from the salary base, otherwise you won't be able to save the new setting.
If you accepted the removal of old salary type, Procountor will remove the old salary type and add the new salary type. Note that only one union fee setting can be valid at the same time.
Save the changes.
Percentage based union fee calculation
To start using percentage based union fee calculation, create a labor union in the Management > Salary info > Labor union view with the Percentage union fee calculation method. Once the percentage calculation method is selected, you can give the actual percentage and select either of the two salary type settings.: All taxable or All taxable except benefits. The possibility to create a unique salary type setting will be released in a later update.
Minimum and maximum amounts per month can be set for percentage based union fee calculation.
Once the labor union has been created, it can be added to employee in Employee register > Salary info.
Salary type 6043 Trade union fee, percentage (automated calc.) will be automatically added to employee's salary base. Percentage union fee takes into account earnings of the whole month, when deducting per slip.
Salary list and slip creation checks the active labor union setting for the employees and will use the percentage calculation if it has been set as active.
With percentage calculation method, the configuring of the salary types is now possible via Customize settings button.
In the new view click Copy, give the new setting a name and select the default setting you want as a basis (All taxable or All taxable except benefits). After this you can add or delete salary types to your own custom salary type setting.
If you click Create new in the Customize settings view, you can create a salary list setting from scratch.
Please note that once the setting is in use / has been used on salary slips, it cannot be changed anymore. You'd need to create a new labor union with new settings.
Custom salary type setting for percentage union fee can be deleted in case it hasn't been used on any salary slips.
Manual union fee calculation
For manual union fee you can create the supplier the same way as for automated feature. Just choose the manual option for the calculation method. Please mark into the notes field the method you use to calculate the fee, so that we can expand the feature based on this information in the future.
Choose this labor union similarly behind the employee. After this, the process becomes manual as before,meaning the user must add the salary type (6040 or 6041) manually into the salary base. Purchase invoice and report are manual as before.
Creating salary list
When creating salary list, Procountor checks the selected employees if they have a valid labor union membership and adds the salary type into the slip. While creating those slips, Procountor checks if there have been previous payments during the same month and has the fixed fee been deducted totally or not. If it hasn't been the remaining sum is deducted.
In case union fee has been collected for the month already, the salary type is still seen in the salary slip, but the sum is zero and additional info has information that the monthly limit has been reached.
Similarly, Procountor checks the possible yearly max limit, and if the limit has been reached, the salary type is visible in the salary slip, the sum is what it can be until the limit or zero, and in the additional info there's information that the yearly limit has been reached.
Note that the minimun yearly limit in the labor union settings is not tracked by Procountor, it is purely a notes field.
Union fee invoice
With Payroll > Union fee invoice function you can search union fees collected from employees with salary types 6042 and 6043 by labor union and by month, so that you can find out the amount of union fees that need to be paid to the labor union. Purchase invoice can be created of salary types 6042 and 6043.
Mark as handled elsewhere button can be used to mark union fees as handled, if a purchase invoice is not created with Union fee invoice function, in which case the union fees will no longer be shown in unsettled union fees.
Creating purchase invoice
First select the labor union and the month for which you want to create a purchase invoice for the union fees. From the search results, select the union fees for which you want to create a purchase invoice.
Enter the invoice date and due date in the window that opens with Create a new invoice -button. Bank reference code is retrieved from the labor union's settings, but it can be changed if necessary.
You can choose that the union fees will be excluded from the union fee report if only one employee's union fees have been selected for the invoice, and an employee-specific reference number has been given as the bank reference code.
You can set the purchase invoice directly into Approved status, bypassing the approval ciculation settings.
With Create -button, a purchase invoice will be created from the union fees, which must be processed and paid according to the normal purchase invoice processing process.
When a union fee invoice is created, then accounts are applied to the invoice from the default salary accounts.
Union fee report
Union fee report can be found in Payroll > Reports > Union fee reports.
Enter dates to From - Until fields to get salary slips with status Paid or Paid elsewhere that have salary types 6042 and 6043 in them, to report results. Note that since the report contains GDPR sensitive data, the Name of the employee and SSN are hidden by default, but you can set them visible from the grid customization (wheel-button).
By right-clicking the report results the report can be opened in Excel, PDF or HTML.
Union fee report can be open as excel-, PDF – and Union fee report file (ASCII) by clicking Export –button.
Report can be created as an ascii-file by choosing Union fee report file. The file can be uploaded on an external service to be reported to unions. In case the file cannot be generated due to incompatible data, invalid rows are shown in dark red color and the info can be found on the grid if it's related to e.g. labor union id or department id.
Union fee correction for automated calculation
Salary type 6045 Trade union fee correction can be added manually to salary slip that contains either salary type 6042 Trade union fee, fixed (automated calc.) or salary type 6043 Trade union fee, percentage (automated calc.).
As for percentage union fee the sum nor the percentage can be changed in the salary slip, a correction salary type is needed. Fixed union fee doesn't necessarily need a correction salary type, as the fixed fee sum can be edited, but in case the correction is wanted to be shown separately, it has been enabled.
Please note that a correction can be only done for an active union fee setting, the correction salary type 6045 is automatically pointed to it.
Possible monthly limit set for a union fee is not checked with salary type 6045 as it can be from a different month. Yearly limit is checked.
In salary slip pdf the cumulative union fee row takes the correction into account. In the employee register / salary info the union fee history shows the correction as a separate information, but included into the total sum.
The 6045 correction salary type is counted together with the 6042 or 6043 salary type in union fee invoice and union fee report.
Deleting the labor union membership
You can delete the labor union setting, if it hasn't been used on any salary slip.
If the setting is used by some employees, the program will notify you: The setting you are about to delete is used by some employees, if you proceed with the deletion, the labor union membership with the setting will be removed from the employees as well.
You can delete the labor union setting via the Partner register or in the Labor union -view by clicking the Delete -button.
If you have used the labor union settings in salary slips, you can mark the membership end date in case it shouldn't be used anymore. You won't see the automated salary type in the salary base after the end date and it won't come to the salary slip depending on the setting if it is based on payday or payment period end date.
Procountor Ledger and labor union fee
Since there is no supplier register in Ledger light and ledger basic –versions, the labor union fee calculation cannot be used. You can use a note -field, that is found in Salary base -view. You can manually maintain the information about the employee’s labor union fees.