Custom Contributions

Introduction

The Custom Contributions feature in Gangmates allows organizations to create and manage unique deductions and contributions tailored to their specific needs. This flexibility ensures compliance with organizational policies and regulatory requirements, including Nigeria’s payroll tax context (e.g., CRA).


Step-by-Step Guide: Creating Custom Contributions

Step 1: Access the Custom Contributions Section

  1. Navigate to Finance -> Payroll -> Payroll Settings.

  2. Click on the Custom Contributions button to access the creation page.


Step 2: Fill Out Contribution Details

  1. Contribution Name:

    • Enter a clear and descriptive name for the custom contribution (e.g., "Cooperative Loan" or "Special Pension").

  2. Type:

    • Select the type of contribution:

      • Amount: The deduction or contribution is a fixed amount.

      • Percentage: The deduction or contribution is a percentage of a specific pay component (e.g., Gross Pay).

  3. Apply To:

    • Select the part of the payslip to which the deduction or contribution applies:

      • Gross Pay: The total salary before deductions.

      • Taxable Income (Base Salary): The portion of the salary subject to taxes.

  4. Responsibility:

    • Choose who bears the responsibility for the contribution:

      • Employee: Deducted from the employee's pay (treated as a deduction).

      • Employer: Added to the employee’s pay (treated as a contribution).

      • Both: Split responsibility between employee and employer.

  5. Employee Contribution Value (if applicable):

    • Enter the exact amount or percentage to be deducted from the employee’s pay.

  6. Employer Contribution Value (if applicable):

    • Enter the exact amount or percentage to be contributed by the employer.

    • For percentage-based values, round the figures for consistency.

  7. Frequency:

    • Choose how often the contribution applies:

      • One-Time: Applies to the next payslip only, then resets to zero.

      • Per Pay: Applies to every payslip perpetually.

  8. User Types (Optional):

    • Select specific user types to which the contribution should apply (e.g., Full-Time, Part-Time).

    • Multiple user types can be selected.

  9. Users (Optional):

    • Select specific users to apply the contribution directly.

    • This can be combined with user type selection for precise targeting.


Step 3: Save the Contribution

  1. After completing all required fields, click the Save button.

  2. The new custom contribution will now appear in:

    • The Custom Contributions Settings Section for management (edit/delete).

    • The Deductions & Contributions Selection Section for inclusion in payroll.


Examples of Custom Contributions

  1. Employee Loan Deduction:

    • Name: "Cooperative Loan Deduction."

    • Type: Amount.

    • Apply To: Taxable Income (Base Salary).

    • Responsibility: Employee.

    • Value: ₦5,000.

    • Frequency: Per Pay.

  2. Employer Pension Contribution:

    • Name: "Special Employer Pension."

    • Type: Percentage.

    • Apply To: Gross Pay.

    • Responsibility: Employer.

    • Value: 10%.

    • Frequency: Per Pay.

  3. Shared Contribution for Insurance:

    • Name: "Health Insurance Premium."

    • Type: Percentage.

    • Apply To: Gross Pay.

    • Responsibility: Both.

    • Employee Value: 3%.

    • Employer Value: 7%.

    • Frequency: Per Pay.


Key Notes

  1. One-Time Contributions:

    • One-time contributions automatically reset to zero after the next payslip is generated.

  2. Combination of User Types and Users:

    • Custom contributions can apply to specific user types (e.g., Full-Time) and individual users simultaneously.

  3. Availability:

    • Once saved, the custom contribution becomes visible in all relevant sections of the Payroll Settings page, including the Deductions & Contributions Selection Section.


Best Practices

  1. Name Contributions Clearly:

    • Use descriptive names to avoid confusion during selection and management.

  2. Audit Regularly:

    • Review custom contributions periodically to ensure they remain relevant and accurate.

  3. Test with One-Time Contributions:

    • Use one-time contributions to trial new deductions or contributions before applying them permanently.


Troubleshooting

  1. Contribution Not Appearing in Payroll Settings:

    • Solution: Ensure the contribution was saved successfully in the Custom Contributions Section.

  2. Incorrect Calculation:

    • Solution: Verify the Type (Amount/Percentage), Apply To, and Responsibility settings.

  3. Users Not Included:

    • Solution: Confirm that the appropriate user types or specific users were selected during creation.


Support

For further assistance, contact support@gangmates.com. Include details such as the contribution name, type, and issue encountered for faster resolution.

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