DGX HRMS Payroll Module

Employee Accounts and Detailed Transaction Items

"Employee accounts and detailed transaction items" generally refer to accounts in finance or accounting and their associated transaction details. These items are typically used to record and track the inflow and outflow of funds. Here are some key points:

Accounts❤️

• Account Type: Monthly payroll account, weekly payroll account, annual payroll account, hourly wage settlement account, and other accounts settled manually.
• Account Balance: The current balance of each account, reflecting the status of funds due for settlement. - Debit/Credit: From the employee's perspective, DR (Debit) indicates an increase in the accounting amount of an item, while CR (Credit) indicates a decrease.

Detailed Transaction Items

• Transaction Date: The date each transaction occurred.
• Transaction Description: A brief description of the transaction, such as receipt, payment, or transfer.
• Amount: The specific amount of each transaction, typically divided into income and expenditure.
• Account and Detailed Transaction Item Status: In the system, this only refers to the status of detailed transaction items such as calculations and cash settlements.

Management

• Regular Reconciliation: Ensures that accounts are consistent with actual funds, primarily checking and verifying that cash flow is consistent with accounting records.
• Accounting Voucher Reconciliation: Conduct spot checks or item-by-item reconciliations to ensure the accuracy of all transactions.

Settlement Cycle

The payroll module in the DGX HRMS system creates corresponding accounts based on payroll review and settlement cycle settings. For example:

Monthly Settled: Monthly payroll accounts, suitable for monthly payroll arrangements. Suitable for long-term employment contracts.

Weekly Settled: Weekly payroll accounts, suitable for weekly payroll arrangements, such as short-term contracts.

Annual Settled: Annual payroll accounts, suitable for senior management with annual payroll.

Hourly Settled: Hourly payroll accounts.

Other Settlement: Settlement that is not based on a regular cycle. Accumulated and verified by the accountant when appropriate, settlement is made to the employee.

Accounting Account Status Options

OPEN (Continuous Accounting)

The current attendance account (account) status is Continuous Recording or Continuous Accounting. Added account details and fixed periodic transactions are included in the calculation.

Calculated

The current attendance personnel account status is calculated based on periodic attributes. For example, if the monthly salary calculation is in progress, the system will mark it as "Calculated" before the end of the month.

Settled

The current attendance personnel account status is "Settled Account" or "Closed Account," meaning that both accounting and cash flow are complete. For example, if all monthly salary details have been calculated and cash flow has been delivered, the current accounting account is closed and settled.

Cancel

The current attendance personnel account status is "Non-cash flow Account." These accounts may involve accounts receivable, accounts payable, or other accounting items, but do not involve actual cash transactions. The status of these accounts generally reflects accounting records rather than actual cash flows.

Automatically Calculated Account Items

• 1 Salary Evaluation

• Salary evaluation calculation items: primarily calculate the percentage of salary to be deducted based on monthly attendance rates. Attendance rate refers to the deduction of time spent late or leaving early from the time worked. For example, if an employee is late for more than the permitted period (e.g., 15 minutes), and the cumulative work time is 8 hours, then the employee's attendance rate for the day is 6.3%. Assuming the salary calculated for a workday is $100, the salary deduction is $6.3. Note: Lateness within the permitted period of 15 minutes is not included in the calculation, meaning the attendance rate for the day is 100%. The monthly average is the cumulative average. This is subject to review and confirmation before it is included in the total account calculation.

• 2 Salary Income Tax and Mandatory Provident Fund

• Basic MPF: Calculated according to the Hong Kong government's 5% standard. The final calculation results in the employee's receivable salary. The company's contribution is subject to its own calculation and is subject to review and confirmation before it is included in the total account calculation.

• Salary Tax: Personal income tax is calculated by calculating all income and expenses, and then deducting the corresponding payable portion based on a percentage. This tax rate is pre-set. You need to clearly understand the current attendance officer's personal income tax rate. This will only be included in the total account calculation after review and confirmation.

• 3 Attendance Deductions

Attendance Deductions: If attendance tasks are not completed, the remaining uncompleted work hours will be deducted from the salary according to the rules. For example, if you leave mid-term and have 10 workdays left to complete, you will need to review and make deductions. Alternatively, if you are severely late or leave early, this calculation item is very flexible for calculating wages based on the attendance payment rate or for freelancers. The metric used is "1 - Attendance Payment Rate / Overall Attendance Completion Rate."

This allows for flexible work schedules, suitable for freelancers, or for calculating wages based on actual work hours, or for special circumstances.

For example: Suppose Chen Dawen earns 20,000 yuan per month, calculated based on 8 hours per day, but works 1-8 hours each day, depending on his work schedule. The final salary calculation is based on the proportion of work performed each day. However, during this time, I had to help my wife take care of the children. Over the past month, I've worked some days and some days not. Sometimes I worked one hour, sometimes eight. The ratio of the actual hours worked to the required eight hours per day is used to calculate the "Attendance Payment Rate/Attendance Salary Rate." If I didn't work at all, the "Attendance Payment Rate/Attendance Salary Rate" would be 0%.

In simple terms, the deduction for attendance is the uncompleted shifts in the remaining settlement period (month), as well as the time spent late or leaving work early.

This amount needs to be reviewed and confirmed before it is included in the total account calculation.

Note: In the current system configuration, the value of GlobalConfig.salaryCalcByActualWorkTime is False.

The current configuration (GlobalConfig.salaryCalcByActualWorkTime = FALSE) turns off. The salary deduction payment rate will not be applied.

• 4 Attendance KPI Assessment

• Performance Bonus: If the attendance policy is met, an unaudited account item detail will be automatically inserted. If the policy is based on rewards and penalties, the calculation will automatically change accordingly. For example, if there are no latenesses from the 1st to the 10th of the month, the system will continuously calculate the bonus status. However, if there are multiple latenesses later, exceeding the policy minimum, the system will automatically change the account item details to a penalty status. This is based on the audited account item details. Audit and confirmation are required before they are included in the account total calculation.

• 5 Additional Salary Calculation Items

• Additional Salary Calculation Items: Special periodic items in addition to base salary are calculated as Additional Salary Items. Special employee calculation items may require special calculation items. For example, a female employee may need a milk powder allowance for the next three months as maternity benefits. You can set up an additional salary item with a fixed monthly cash allowance of 500 yuan for three months of milk powder allowance. Alternatively, a sales representative may need a monthly allowance for communication expenses. However, please note that once this item is added, it must be manually deleted before the next calculation cycle. It requires review and confirmation before it is included in the account total calculation.

• Finally: Personnel Accounts and Compensation

• Personnel Accounts: After the aforementioned automatic calculation items are completed, the account total will continue to be calculated, provided that the current account has not been settled or cancelled. Settlement approval requires a multi-user approval process before it is marked as settled. If your company's management processes are simple, you can switch to single-user approval. Items require review and confirmation before they are included in the account total calculation.

• The above automatic calculations are run daily or every few hours and are ignored until they are reviewed and confirmed. Alternatively, if calculations are run continuously monthly, such as for attendance policy calculations, if payroll needs to be calculated before the 1st of each month, the account details must be reviewed and confirmed first.

• For enhanced security, all account item details calculated by computers based on business logic must be manually reviewed and confirmed before being included in the total account calculation. Furthermore, approved records are authenticated and stored using asymmetric encryption based on international security standards, ensuring that data cannot be altered directly and can only be manipulated through system processes, thus ensuring the security of financial data.

Employee Compensation Accounts and Business Names

Attendance Officer (or Employee) Compensation Account Description and Notes:

1. Accounts are for attendance officers (employees)

Account calculations based on base salary cannot be created without a reviewed assessed salary. After entering a detailed account, the system automatically determines the account type and automatically applies it to that account.

2. Settlement cycle accounts are divided into six categories:

Hourly, daily, weekly, monthly, annual, and other.

3. Accounts are continuously open (OPEN).

Whether monthly, hourly, weekly, or annual, calculations are performed daily. As long as the account remains open and approved, it will be included in the account calculations. However, if an account has been settled or canceled, it will not be included in the system calculations, and manual calculations will not affect it. Newly added detailed transactions will not be included in the calculations, as the account has already been settled.

Account Detail Transaction: Once submitted and calculated by the system (such as attendance KPIs, attendance deductions, and other automatically calculated items), and approved, it will be included in the calculations.

4. Download Monthly Payroll Account Report

If you need to reassess your base salary, you can add a new salary assessment and review it. The system will automatically use the latest reviewed salary as the base salary for calculation.

5. Recalculation Items

This refers to recalculating the selected payroll account type. For example, if "2025-12-30 13:59" is an annual payroll account, the calculation range is within 2025. For monthly payroll accounts, the calculation range is from 2025 to December. If hourly payroll is selected, the calculation range is within that hour.

6. Continuous Accounting Process:

First, account status is divided into cash-related status and manual operation-related status. Detailed transactions are calculated only after approval. After calculation, the account can enter the settlement process. Once settled, the remaining detailed transactions are no longer included in the calculation. The exception is the "Other" account type, which continuously includes all approved journal entries of the same type in the calculation until final settlement or cancellation.

Second, the main cash-related statuses are: OPEN > CALCULATED > CLOSED || CANCEL (Account Open > Calculated > Settled || Cancel). Once the account item details are entered and approved, the account is created. If the account is automatically calculated by the system, the status is "Calculated."

Accounting Detail Journal Status

Accounting Detail Journal Status Option Description: The corresponding control database table is "EplyFinanceItem"

1. Submitted SUBMIT

This is the status of the detailed account entry submitted by the current user. It simply indicates that the record has been entered and no other operations have been performed.

2. CANCEL

Cancels the entry of this record in accounting.

3. APPROVED

Approves and confirms the detailed accounting entries.

4. CALCULATED

The approved accounting details have been calculated by the system. This is a post-approval calculation. Approval is required for calculation. Unapproved details will not be included in the ongoing account balance.

The tenses in English and Chinese for the four statuses are not strictly standardized. "Submitted" (English: SUBMIT) and "CANCEL" (English: CANCELLED) are equivalent here. These are also the same as "CANCELLED." These are simply fixed in the design.

Hong Kong Labour Department's definition of wages:

https://www.labour.gov.hk/tc/public/pdf/wcp/ConciseGuide/03.pdf

Definition of Wages

Wages are all remuneration, income, allowances (including travel allowances, attendance allowances, commissions, overtime pay), tips, and service charges paid in money to an employee for work done or to be done by the employee, regardless of how they are called or how they are calculated, but excludes:

1. The value of accommodation, education, food, fuel, utilities, or medical care provided by the employer;

2. Employer contributions to employee retirement plans;

3. Commissions, attendance allowances, or attendance bonuses that are gratuitous or granted at the employer's discretion;

4. Non-recurring travel allowances, the value of any travel concessions, or actual travel expenses incurred by the employee in connection with the work;

5. Amounts payable to an employee for extraordinary expenses incurred by the nature of the employee's work;

6. Year-end bonus or annual bonus given at the employer's discretion;

7. Remuneration paid upon completion or termination of an employment contract.Employees' end-of-year bonuses, maternity leave pay, paternity leave pay, severance pay, long service payment, sickness allowance, holiday pay, annual leave pay, and pay in lieu of notice are all calculated based on the above definition of wages. Furthermore, employers must include overtime pay in the calculation of the above compensation items if: • it is fixed; or • its average amount over the preceding 12 months is not less than 20% of the employee's average monthly salary for the same period.

In the system, wages are often referred to by the common term "salary."