If there is a department in the manufacturing industry with employees in mainland China, the salary needs to be converted into RMB currency. According to the tax calculation method in mainland China, the monthly tax deduction will be transferred back to HKD for salary payment, then the calculation is cumbersome, time-consuming and error-prone.
Salary calculation has always been a pain point faced by the manufacturing industry because it involves multiple variables and the salary composition is complex.When it comes to salary services related to attendance and holidays such as annual bonuses and wages, it is necessary to record and check clock-in, attendance data and holiday data on a daily basis.Making it even more difficult to handle payroll accurately.
This article will discuss how to efficiently handle payroll in the manufacturing industry, and see the efficient solution that Workstem’s one-stop human resources management system can provide you!
How is salary typically structured in manufacturing?
Salary usually consists of basic salary , annual bonus, monthly salary and other parts. Resigned employees enjoy the serverance_fixed annual bonus. The basic salary is the employee’s fixed income, the annual bonus is the monthly salary, and the resigned employee is entitled to severance when the employee leaves. The fixed annual bonus is a non-fixed income, and the calculation methods are complex and diverse. manufacturing salary what are the pain points in computing?
- Various calculation methods and high complexity
If the employee type includes Hong Kong employees and Mainland employees, the employees in the Mainland need to be converted into RMB when calculating their salary. According to the tax calculation method in the Mainland, the monthly tax deduction will be transferred back to HKD. Paying wages and calculating wages are cumbersome, time-consuming and error-prone.
- The data is complex and accuracy is difficult to guarantee
Annual awards and salary calculations involve a large amount of data, such as attendance data and holiday data. These data are overwhelming, and their accuracy directly affects the calculation results of salary.
- Calculating manually or using traditional methods is inefficient
Calculating salary using traditional methods such as manual or Excel will undoubtedly require multiple calculations and checks. If the calculation is incorrect, the form will need to be modified repeatedly, which is time-consuming and labor-intensive. More seriously, it will affect the interests of employees and may lead to unnecessary labor disputes.
Have you also encountered the above problems? How can we manage payroll accurately, efficiently and quickly?
How to manage payroll in the manufacturing industry?
Let’s take a look at the following manufacturing cases. Workstem will give you an in-depth understanding of salary calculation in the manufacturing industry.
The customer is a motor and machinery manufacturing company. For a department working in mainland China, Chinese tax needs to be calculated on monthly salary and annual bonus. The monthly salary and annual bonus will use different conversion rates between HKD and RMB.
- Customer’s core characteristic business – China tax calculation
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China tax calculation |
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- Customer’s core characteristic business——Annual Bonuses
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Annual bonuses |
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- Customer’s core characteristic business – Business trip salary
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Business trip salary |
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- Customer’s core characteristic business – Wage deduction for lateness, early leave and absence
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Wage deduction for lateness, early leave and absence |
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The customer needs to calculate the annual bonus and monthly salary that employees working in different departments and positions should receive according to the above business logic. For departments working in mainland China, Chinese tax needs to be calculated on the monthly salary and annual bonus. The monthly salary and annual bonus will use different conversion rates between HKD and RMB.
If there is only this one position, HR may be able to control such a large-scale salary calculation, but if there are multiple positions and multiple departments, and the salary calculation standards are different, it will be a huge workload!
Referring to the above cases,In order to reduce errors in salary calculations and improve work efficiency, coffee shops can summarize some methods to efficiently manage payroll.. Here are some suggestions:
- Establish clear annual bonus, salary, lateness, early departure and absence salary deduction policies
Establishing clear policies can help employees manage annual bonuses, issue salaries, and calculate methods and standards for salary deductions for lateness, early departure, and absenteeism, and reduce misunderstandings and disputes. The policy on annual bonuses, wages, and wage deductions for tardiness, leaving early, and absenteeism should include calculation methods, proportions, settlement times, etc., such as the above-mentioned different calculation methods for annual bonuses, wages, and wage deductions for arriving late, leaving early, and absenteeism.
- Formulate clear annual bonuses, issue salary, and calculate formulas for salary deductions for lateness, early leave, and absence.
When it comes to salary services related to annual bonuses, salary issuance, tardiness, early departure, and absence, it is necessary to record and check clock-in, attendance data, and holiday data on a daily basis. The specific circumstances and business requirements of the manufacturing industry need to be taken into consideration when determining the calculation method. Companies should develop clear calculation formulas based on their own circumstances and communicate them to employees to ensure that employees understand their sources of income.
- Use professional automation tools
A sound data collection and management mechanism is a prerequisite for ensuring accurate salary calculations. The use of automated tools can greatly improve the accuracy and efficiency of salary calculations. For example, the Workstem human resources management system can automatically manage attendance and holidays, and instantly record lateness, early departure, absence and other abnormal attendance status. Mobile App application/approval, high efficiency, fast working hours statistics, automatically integrate all data to help the manufacturing industry automatically calculate attendance bonus, holiday pay, notice payment and long-term service payment, reducing manual errors and saving time.
Great recommendation! Workstem improves payroll efficiency.
Workstem one-stop human resources management system Support automatic obtain the number of remaining annual leave days when an employee resigns, customize the calculation method of annual leave pay, ADW calculation, settlement time, etc., and use the powerful AI calculation engine to calculate according to the annual leave pay calculation formula, and automatically compare salary data , ensure that the calculation of annual leave pay complies with company policies and standards, and pays out efficiently.
In addition to calculating annual leave pay, the Workstem system can also provides a full range of solutions to help the manufacturing industry business management of other HR processes, such as Rostering、Attendance、Leave, MPF and tax return management, etc., help the manufacturing industry can truly realize digital transformation and improve management efficiency and employee satisfaction.
Read More:
How to Efficiently Handle Payroll with Complex Long Service Payment in Retail?
