Date Specific Company Adjustments (or DSCA) gives you the option to automatically reward employees with annually recurring adjustments, such as birthdays or anniversary bonuses. To know more about this, keep reading on!
1. From the Payroll home page, choose the Setup tab, then choose Payroll, then select Company Adjustment.
2. Click on the Add New Record button and select Annual for Recurrence Frequency to begin setting up your new Date-Specific Company Adjustment (DSCA) template.
- Adjustment Type - Select the adjustment type from the dropdown (e.g. salary adjustment or reimbursable allowance).
- Adjustment Name - Input the name for this template.
- Adjustment code - Input a unique adjustment code.
- Applied Before Tax
- Taxable - Select whether DSCA is taxable or non-taxable.
4. Click the Select Employees button to assign employee/s to be granted with the DSCA.
A popup window will show up, allowing you to choose employee/s to be included in the DSCA template through search filters.
5. Choose whether the DSCA should be rewarded on the employee’s birthday, hire date anniversary, or any custom date by choosing a date from the calendar date picker.
6. On the Amount text field, specify the value of the adjustment. You are given the option to reward the employee an incremental amount. Select whether the increments are by Amount or by Percentage, and then input the amount in the In Increments of field.
Set a Maximum Amount and choose whether the adjustment ends upon reaching the maximum amount or it continues the payout with the maximum amount.
For example, To better understand how these features work, consider this illustration of a typical use case for the incremental amount feature and the maximum amount feature. You would like to set a birthday allowance of Php 1,500, in increments of Php 500 and a maximum amount of Php 2,000. For the first year, the employee will receive Php 1,500. Then on the second year, the employee will receive Php 2,000.
If I select End at max. amount, then the employee will no longer receive a birthday allowance on the third year. On the other hand, if the 'Continue pay out at max. amount' option is chosen, then the employee will receive a Php 2,000 birthday allowance in his fourth year in the company, and will continue to do so as long as the adjustment is not disabled.
To credit the DSCA to an employee, create a payroll run and click on the Import Adjustments button. The Annual Company Adjustment popup will show up, giving you the option to select the attendance period where the employees’ birth date or anniversary date or the custom date falls.
DSCA can only be credited once a year to an employee. It is not possible to credit more than one birthday or anniversary allowance in a year.
- Should you wish to make use of Date Specific Company Adjustments, please contact our Support Team so they may enable this feature for you.
Pretty simple wasn't it? If you have further concerns or questions, please feel free to reach out to us at email@example.com!