Defining Salary Advances
Salary advance is usually paid at the 10th or 15th of the month. The advance is based on 40 percent of the monthly salary and the number of days worked during the month. The remainder of the monthly salary (the balance) is then paid on the 5th of the following month.
The monthly salary calculation varies by employee type:
Monthly employees: 40 percent of minimum wage.
Hourly employees: 40 percent of a 220-hour month at the hourly minimum wage.
Commission Employees: 40 percent of average commissions.
The system uses the following information when processing salary advances:
Employee HR information: Name, registration, hire date.
Time management information: Absences, vacations.
|
Element Type |
Element Name |
Description |
|---|---|---|
|
Process List |
KR PR AD QUINZ |
Process to advance payment. |
|
Section |
KR SE INIC QUIN |
Initialization section for income tax if it is regime de caixa. |
|
Section |
KR SE REMUN MEN |
Monthly remuneration calculation of the advanced payment calculation base. |
|
Section |
KR SE ADIANTAMENTO |
Gets the advanced pay amount. |
|
Section |
KR SE REC IR |
Calculates the income tax if it is a regime de caixa. |
|
Earning |
ADIANTAMENTO |
Used to make payments. Applies the percent in AD VR % ADTO over the ACUM AD QUINZ. |
|
Deduction |
DESC ADTO |
In payroll process, this deduction is used to discount the advanced payment. |
|
Accumulator |
ACUM AD QUINZ |
This is an advanced pay calculation base. |
|
Variable |
AD VR OPCAO |
Taken from the Payee Parameter page. |
|
Variable |
AD VR % ADTO |
Accepts the payee override from option in Payee Parameter page. |
If the salary advance and the balance payment are made in the same month, the advance is not subject to any type of tax deduction. The value will be paid in full according to the percentage set forth on the indicated salary. Taxes are deducted from the balance payment made at the end of the month.
If the salary advance and the balance payment are not made in the same month, the company is required to withhold income tax on the advance payment.