(RUS) Set up employee compensation parameters
Important
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Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2
This topic describes about how to set up types of incapacities and injuries, the scale of charges, and pay frequencies for employee compensation payments.
The work compensation parameters are necessary to determine the payment that an employee receives when the employee performs their duties. The level of compensation can be defined by scale of charges while the pay frequency defines the frequency of making payments.
The work incapacity compensation parameters are necessary to determine the amount of pay that an employee receives when the employee is unable to work because of certain types of incapacities that are covered by social insurance fund and the wage fund. When employees are absent, they receive social insurance payments.
Prerequisites
The following table shows the prerequisites that must be in place before you start.
Category |
Prerequisites |
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Version |
Microsoft Dynamics AX 2012 R2 Payroll for Russia Feature Pack |
Country/region |
The primary address for the legal entity must be in the following countries/regions: Russia |
Setup tasks |
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1. Set up types of work incapacities and injuries
You can set up certain work incapacities to refer to if an employee is temporarily unable to work. You can use the Sick lists form to register a sick list that defines the temporary work incapacity. An employee may temporarily be unable to work because of various incapacities related to child care, illness of the employee, illness of dependents, or occupational diseases. In these cases, the company makes contributions to the social insurance fund on behalf of the employee. These contributions or insurance fees are used by the employee when the employee is unable to work.
An employee can also be absent because of child rearing leave. An employee cannot be compensated for more than 100 percent of the average earnings per month for this incapacity. Employees who work in unfavorable conditions are compensated by the government for a longer duration with more compensation and increased minimum average earnings than regular employees. Also, the employees must have a minimum average earning that is defined by the government.
To set up the types of work incapacities, follow these steps:
Click Payroll (Russia) > Calculation procedures > Sick lists > Setup > General settings.
On the General tab, select details for compensation calculations.
Use the information in the following table to select the compensation parameters.
Fields
Purpose
Length of service
Select the seniority that corresponds to the duration for which the employee is insured and for which the employer pays contribution to the social fund. This seniority is used to calculate social allowance.
Period of restriction calculation
Select the number of months that precede the incapacity start date that is used to collect information for average earnings calculation.
From 5 to 7 days working week
Select the conversion factor to convert a 5-day working week to a 7-day week.
Excluded time group
Select the time group that contains the time codes that is to calculate the number of days that are excluded from the number of calendar days.
Note
The excluded number of days is used to calculate the daily average earnings. The daily average earnings are used to calculate social fund contributions for specific kinds of incapacities related to child care.
Group code
Select the time group that contains the time codes that calculates the part time coefficient that is applied when the incapacity compensation allowance is paid from MROT.
Calendar
Select the calendar that is used to calculate the part time coefficient when the allowance is paid based on MROT.
Note
MROT is the minimum monthly wage for employees in Russia.
On the Types of work incapacity tab, select one of the following types of incapacity:
Illness
Care of sick
Maternity leave
Injury
Treatment in sanatoria and health resorts
Child rearing leave
Child care (out-patient treatment)
Child care (hospitalization)
Child care for child with disability
Child care without restriction of duration
Professional injury
Occupational disease
In the Sequence field, enter the sequence code that refers to the configured counters. The configured counter rules are defined for sick list calculation and payroll transactions creation for the selected type of incapacity.
Select the Additional payment from Wage Fund check box to accrue extra pay for the sick lists from the wage fund. This extra pay is paid to the employee to compensate the reduced pay from the social fund that is calculated on the regular average earning.
For example, if an employee is sick, the employee compensation can be calculated based on the average earnings. The employee receives 80 percent of the average earnings guaranteed by law and the company pays the remaining 20 percent as a compensation for work at home during the illness.
In the Unpaid days field, select the rate code that corresponds to the number of days at the beginning of the work incapacity that is compensated from the wage fund and not from the social fund.
In the Benefit limitation field group, in the Apply the amount's limitation field, select the rate code. The rate code that you select must have the Value field set to Yes in the Rates form.
Note
You can select the rate code in the Monthly amount limitation, Yearly amount limitation, Daily average earning's amount limitation, and Hourly average earning's amount limitation fields to define rules of limitation based on the prior period’s revenue by using the average earnings calculation.
In the Apply the seniority's limitation field, select the rate code. The rate code that you select must have the Value field set to Yes in the Rates form.
Note
You can select the rate code in the Minimal seniority for MROT, Seniority limitation, Seniority limitation for dismissal employees, and Seniority limitation for MROT fields to define rules of limitation on the allowance value.
In the Minimal seniority for MROT field, select the rate code for limitations that are applied to the employee at the start of the employment. The employee is paid only a fixed percentage of the social insurance at the start of the employment. The rate code value in this field is available based on the rate code values that you select in the Apply the seniority's limitation field.
Note
The selected rate code applies to the employee’s seniority in months and if the calculated value is positive, you can use the rate value as the percentage of the average earning calculation and the allowance is calculated based on MROT value.
In the Seniority limitation field, select the rate code for the maximum allowance on the average earning that depends on the seniority. The rate code in this field applies to the employee's seniority in years.
Note
The calculated value is used as the percentage of the average earning calculation and the allowance is calculated based on average earning calculated from prior earnings.
In the Seniority limitation for dismissal employees field, select the rate code for the maximum allowance on the average earnings of an employee after the dismissal of the employee. The rate code in this field applies to the number of days after the employee's dismissal date.
Note
If the calculated value is positive, you can use the rate code as the percentage of the average earning to be paid as the allowance. This percentage overrides the value that is defined in Minimal seniority for MROT or Seniority limitation fields.
In the Limitation by days field, select the rate code to specify limitations for the number of days for which the child-related benefit is calculated. This rate code applies to the selected child's age in years that you set up in the Relatives form.
In the Percent field, select the rate code to specify the percentage at which the compensation is calculated. This rate code applies to the selected child's age in years that you set up in the Relatives form.
In the Days restriction for each case field, select the rate code that specifies the number of days for which the company provides the compensation for a single case. This rate code applies to the selected child's age in years that you set up in the Relatives form.
In the Year days restriction field, select the rate code that specifies the maximum number of days in a year for which the company provides the compensation. This rate code applies to the selected child's age in years that you set up in the Relatives form.
In the Calculation method code field, select a calculation method code for the calculation of the average earnings value for sick list compensation.
In the Time code field, select the time code to update the timesheet of the employee.
In the Insurance seniority type field, select the insurance seniority type that indicates the employee absence with a certain code in personified reporting forms that is submitted to the Pension fund.
Use the information in the following table to select the details for calculations of incapacity compensation that are related to child-rearing leave.
Limit of age |
Select a rate code that defines the duration of the payable child care vacation in months. This rate code is used for the vacation payment and for the validation of registration of vacation after you compare the rate value with the child's age at the end of vacation. For more information, see (RUS) Register sick lists manually and calculate compensation. |
Average duration of month (in days) |
Select the rate code that defines the average number of days in a month that is applied in average earning calculation. |
Minimal child care monthly allowance from budget |
Select the rate code that defines the minimum monthly allowance for childcare for employees living in unfavorable conditions. This allowance is funded by the federal budget. |
Allowance limit (% from budget) |
Select the rate code that defines the percentage of average earnings that is payable as a monthly childcare allowance for employees living in unfavorable conditions. This allowance is funded by the federal budget. |
Minimal child care monthly allowance from FSS |
Select the rate code that defines the minimum monthly allowance from the FSS for child care. Note FSS is defined as the off-budget fund providing insured individuals with certain social benefits. |
Allowance limit (% from FSS) |
Select the rate code that defines the percentage of average earnings that is payable as a monthly childcare allowance from FSS. |
Criteria of daily average earning accounting |
Select Maximum, Minimum, First, or Last as the criteria for the selection of daily average earnings from the list of daily average earnings in case of simultaneous care of several children. |
Type of seniority excluded from the insurance one |
Select the code that is used in the personified reporting forms, which is submitted to the pension fund for the period when the allowance is funded by the federal budget for employees living in unfavorable conditions. |
To set up parameters for the average earnings calculation method for work incapacities allowances calculation, follow these steps:
In the Sick list calculation settings form, on the Overview tab, either select the existing record or create a new record of the average earning calculation code. For more information, see (RUS) Register sick lists manually and calculate compensation.
On the Average earnings tab, select the calculation details for daily or hourly average earnings.
In the Calculation via funds field, select the rate code that defines the number of years used for average earnings calculation based on contributions to FSS fund including previous employments.
In the Number of month field, select the rate code that specifies the number of months to be used in the average earning calculation. The payment source can be determined from either a wage fund or a health fund for the calculated average earnings.
In the Calculations field, select By salary rate or By actual salary as the calculation principle for sick list calculations.
In the Calculation type field, select By days or By hours to calculate the average earnings.
Select the Average earnings recalculation check box to recalculate average earnings for each month of the allowance provision.
Select the Average rate by MROT recalculation check box to recalculate average earnings if the allowance is calculated by MROT for each month of the allowance provision.
Enter the required details in the Numerical parameters, Time parameters, and Bonus field groups. For more information see, (RUS) Set up vacations, business trips, and incentives for the payroll process and (RUS) Set up calculation procedures for the payroll process.
Note
The values in these field groups are applicable only when Number of month field is configured.
2. Create a scale of charges and pay frequencies
You can use the Scales of charges form to create a directory of pay scales in an organization. You can create new pay scales, confirm planned pay scales, and cancel confirmed pay scales. After you create a scale of charges, you can define the pay frequencies that depend on the employment status of the employee. The company schedules a minimum of one payroll calculation per month or any number of interim payrolls. The calculation of payrolls depends on government requirements and company policies.
To create a scale of charges, follow these steps:
Click Payroll (Russia) > Staff administration > Structure > Scales of charges.
Click New to create a pay scale.
In the Code field, select a code for the list of pay scale codes defined in advance.
In the Description field, enter a description of the pay scale.
In the Start date field, select the date from which the pay scale is effective.
In the Wage of first grade field, enter the minimum wage of the first-grade employee for the selected pay scale.
On the General tab, in the Number of transfer journal field, you can view the number of the transfer resolution journal that is generated when a pay scale is approved for employees who are hired and paid based on the changed scale of charges.
Optional: Click Copy to create a pay scale based on the current pay scale in the Copying of scale of charges form.
In the Code field, enter a code for the pay scale.
In the Start date field, select the starting date for the pay scale.
In the Factor field, enter the indexing rate to calculate the wages of the first-grade employee.
Click OK to create a pay scale in the Scales of charges form.
Note
A new pay scale is automatically created in the Scales of charges form. The minimum wage for the previous pay scale is multiplied by the indexing rate value, and the wages for the new pay scale are displayed in the Wage of first grade field.
Click Grades to update the salaries and tariff rates for the wage grades of the selected pay scale in the Wage grades form.
Click New to create a wage grade.
Note
You can create a wage grade for any pay scale that is not marked as Active.
In the Grade field, enter a numeric code for the wage grade.
In the Description field, enter a short description of the wage grade.
In the Factor field, enter the indexing rate to calculate the wages of the first grade employee.
Note
The minimum wage for the current scale of charges is multiplied by this indexing rate to display the amount in the Salary field.
Click Approval to open the Approval of scale of charges form.
In the Resolution number field, update the transfer resolution number.
In the Resolution date field, update the date of issue of the transfer resolution.
Click OK to close the form.
Note
In the Scales of charges form, the Active check box is automatically selected to show the status of the pay scale as approved.
Click Cancellation to cancel the approval of the pay scale in the Cancellation of approval of scale of charges form.
Click OK to close the form.
Note
In the Scales of charges form, the Active check box is cleared automatically to show the cancellation status of the pay scale.
3. Creating types of contracts
Companies hire employee based on rules that are regulated by the labor codes or civil codes. The employees who are hired according to the labor contract laws are additionally classified as Permanent, Temporary, On a specific term, or Seasonal types of workers. These types of workers are hired according to the labor agreement. Civil contract workers are not hired permanently by the company, and their work period is for the time period that is specified in the agreement. For more information, see (RUS) Hire, transfer, and dismiss a worker.
Next step
(RUS) Set up parameters for the payroll process
Related tasks
(RUS) Set up calculation procedures for the payroll process
(RUS) Set up vacations, business trips, and incentives for the payroll process
Technical information for system administrators
If you don't have access to the pages that are used to complete this task, contact your system administrator and provide the information that is shown in the following table.
Category |
Prerequisite |
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Configuration keys |
Click System administration > Setup > Licensing > License configuration. Select the CIS Payroll and CIS Staff administration configuration keys. |
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Security roles and duties |
To perform this task, you must have the following roles:
To configure the setup of employee compensation parameters, you must be a member of a security role that includes the following duties:
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Security roles and privileges |
To configure the setup of employee compensation parameters, you must be a member of a security role that includes the privileges that are described in the following table.
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