Getting started with payroll: principles and connections
This help chapter will assist you in working with the "Employees" module — what to configure in order to minimize issues when calculating payroll. It also aims to explain the connections between payroll calculation and its transfer to accounting.
Person Groups
If you want to sort employees into groups, it is advisable to prepare these groups in advance directly in the Employees module. You can add to them on an ongoing basis.
Business Partners
In the "Business Partners" module, under the "Company Addresses" option, you must add the addresses of health insurance companies, the relevant Czech Social Security Administration office, and the relevant tax authority. You must always select the appropriate relationship type — tax authority, health insurance, social security. This is also required for correctly completing official forms. At the same time, remember to set up bank account details to make it easier to settle any liabilities that arise.
Accounting
For automatic posting of payroll costs and payroll liabilities, it is advisable to configure the necessary internal document types, liability types, and posting rules. Some of these types and rules are already prepared. You should review them and adjust as needed to match your chart of accounts.
The following liabilities are involved:
Social insurance
Health insurance
Since there are multiple health insurance companies, each employee has their health insurance company recorded on their profile card. If you want a separate analytical account for each health insurance company to track liabilities, you must create a separate group for each insurer, where you set the credit-side account under the "Basic Information" tab. An additional field dedicated to payroll is not yet available, but you can use the "For received invoices" field for this purpose.
Advance tax
Withholding tax
Resident — tax
Payroll advance
Cash on delivery
Deductions
The following internal documents are involved:
Gross wage
Wage compensation
Deductions
These liabilities and internal documents can also be added on an ongoing basis.
If you post to cost centers, each employee's profile card (on the main panel) has a cost center assigned. Costs will then be posted to those cost centers.
The document types configured this way are then selected in the payroll settings, as described in the next chapter "Payroll Settings." Their generation then happens automatically by clicking the "Generate Liabilities" button in the "Payroll Update" option.
If you have employees divided into groups, you can select a different internal document for posting gross wages and wage compensation for each group of persons. When these are generated, the posting settings defined at the group level will be applied.
If you need to single out specific employees (regardless of whether they belong to a group), you can assign a different internal document for posting gross wages and wage compensation, or a different internal document or liability for posting wage deductions, at the individual employee level. When generated, the posting settings defined for that employee will take precedence.
Payroll Settings
This is another important step in activating the Employees module. In the "Company" menu, under "Settings," select the "Modules" tab -> "Employees." When filling in this tab, refer to the relevant help documentation. Make sure to complete all tabs.
HR Management
Once you have prepared everything described in the preceding sections, you can proceed to the "HR Management" option and begin setting up individual employee profile cards.
The "Basic Information," "Other," and "Address" tabs contain personal data.
Personal data relevant to payroll calculation must be entered in the "Payroll Parameters" tab. This tab contains information related to tax credit eligibility — whether the employee has signed a tax declaration, whether they are claiming a tax credit for themselves as a taxpayer or as a student, disability status, and so on. The employee's health insurance company is also set here.
Remember to complete all sub-tabs. If an employee is claiming a tax credit as a taxpayer, they must check this in the "Tax Credits" tab — simply checking that they have signed the tax declaration is not sufficient.
If the employee will be claiming a tax credit for a dependent partner, complete the "Dependent Partner" tab.
If the employee will be claiming a child tax credit, complete the "Children" tab — however, the child must also be selected in the "Payroll Parameters" tab, which contains a dedicated "Tax Credits" sub-tab.
If the employee receives a pension, enter this information in the "Other" tab.
If the employee will be claiming any additional tax credits (disability, student status, etc.), enter the relevant details in the "Payroll Parameters" tab, which contains a dedicated "Tax Credits" sub-tab.
In the "Bank Account" tab, enter the account to which you will send the employee's salary (mark it as primary). Add any additional accounts to which you will transfer amounts deducted from the employee's pay.
Pay special attention to the "Employment" tab. Do not overlook the important "Work Schedule" sub-tab. Without completing this, the payroll may not be calculated correctly. The system cannot determine whether this tab was omitted by mistake or left blank intentionally. If you want to post gross wages differently for individual employees, this can be configured at the employee level and will take precedence over the default settings.
If an employee has recurring payroll components (monthly salary, supplements, etc.), select them in the "Standing Payroll Components" tab. The components listed there will then be automatically included in the payroll calculation every month.
If an employee does not work the full month due to absence, select the type of absence in the "Absence" tab. This tab can also be updated later in the Payroll Update option using the "Update Absence" button.
Pay additional special attention to the "Shifts" tab. Each employment contract and each month has one row. Worked shifts must be properly marked — only then will the payroll be calculated correctly.
In the "Deductions" tab, enter all deductions to be withheld from the employee's pay — alimony, savings, enforcement orders, etc. The system is not yet able to calculate the amount of an enforcement deduction automatically. In this tab, you select the bank account (from the "Bank Account" tab) to which the deduction will be sent. If you want different posting for different deductions, this can be configured for each deduction individually and will take precedence over the default settings.
Payroll Components — Input and Selections
This option in the "Employees" module allows quick updates to individual payroll components for specific employees, such as bonuses and similar items.
Payroll Update
The "Payroll Update" option is the final step in payroll processing, where you calculate the payroll, make any last adjustments, update absences, and generate accounting documents.
Print Outputs
The "Print Outputs" and "Payroll Components — Input and Selections" options allow you to print the payroll reports you could not find in the previous options, such as in HR Management or Payroll Update.
You can print reports for your own use (monthly and annual summaries, for individuals and for the company as a whole, etc.), as well as those you are required to submit to health insurance companies, the Czech Social Security Administration, the tax authority, and so on.