Compensation history

Interface overview

In the employee details section, to the right of the main table, there is a Compensation History block. This block displays historical data on salary changes. The information is considered confidential, so it only becomes visible when you hover the cursor over the block. Entries related to compensation can be edited or deleted.

By clicking the +Add Salary button, the user can enter information about the employee’s new salary for a new period.

Only one compensation can be assigned for a given period. For accurate payroll calculations, the compensation must be entered in the correct format. For example, the first period could be from 01.11.23 to 31.01.24, and the next period should start from 01.02.24 and last until the next review (as shown in the example above).

Fields marked with * are mandatory to fill in.

Add new compensation

Field

Description

Compensation type

Types of compensation (a tooltip will help clarify the purpose of each type of compensation)

Variable

Employee rate is calculated based on the number of working days in a month. Example: rate of $3000/month, 21 working days in a month → $3000/21 = $142.8/day; $142.8/8 hours = $17.86/hour

Hourly

Hourly rate calculated based on hours worked. Compensation is determined by the formula n × r, where n is the number of hours worked, and r is the hourly rate

Fixed

Fixed rate that does not depend on the number of reported hours. Vacation or sick leave reporting does not affect this type of compensation

From

The start date for the compensation period

To

The end date for this salary review period. This field is optional

Internal

Total hours worked internally for the company

External

Hours worked on a specific project

Seniority Level

Employee’s professional level based on the company’s predefined list for this position

Partial workload, %

A marker indicating an employee’s reduced workload is an indicator that does not affect salary calculation but helps track the employee’s workload

Pay compensation for untracked hours (variable salary option)

If the monthly work hour target is not achieved, compensation will be calculated according to the predetermined rate.

Tax group

List of assigned tax groups according to the company’s policy

Notes

Field for comments

Taxes

In the ITFin system, you can add tax contributions covered by the company. The main tax groups used within the company should be added under Company > Settings > Taxes.

When adding compensation for an employee, you need to specify the details of tax contributions.

Let’s consider an example where the company covers taxes for Gig workers. We have added this tax group in the general settings and specified it in the employee’s profile.

After this, we can check the tax calculations in the Payroll.

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