Choose how each person is paid
Keelvy works out what you owe each person from their pay settings and the work recorded. You start with a pay model, and the settings under it are filled in for you.
You can start without touching taxes at all. If you employ nobody formally, set up the pay models and skip tax profiles: what you owe, what you have paid and what the work costs the product all work. A payout with no tax profile is simply gross.
Pick the pay model
Section titled “Pick the pay model”Open the person in Finance & team → Employees and, under How this person is paid, choose the Pay model.
- Wage + hour norm + overtime: a fixed wage buys an hour norm, say 40 a week. Hours beyond the norm are paid on top, at the overtime coefficient of the active overtime profile.
- Wage + norm, part of the extra untaxed: the same, plus an Official taxable base. Everything above it is paid without withholding. Set the base under Tax and settlement.
- Piece work only: no wage. Pay is the completed piece work on production orders, at this person’s piece rates.
- Wage + piece work: a fixed wage with completed piece work added on top.
- Fixed salary: a wage and nothing else. Hours are recorded but do not add to pay.
- Paid by the hour: no wage. Pay is the hours on the timesheet at the hourly rate.
If you then change any setting under the model, the model reads Custom: the settings are yours and are used exactly as set. Older records may read Not classified yet.
The settings under it
Section titled “The settings under it”- Basic wage and Wage period: Monthly, Weekly or Biweekly. A weekly or biweekly wage is converted to a monthly figure.
- Hourly rate: required, and it may be zero. It prices timesheet hours, and it is copied onto a production step the moment you assign the person to it.
- Rate for hours: Set by hand, or Worked out from the wage, which divides the wage by the hour norm of the active overtime profile so you never recalculate a rate when the wage changes.
- Which hours are paid: Every hour, or Only hours above the norm.
- Wage combine: Guaranteed minimum (the wage or what they worked, whichever is larger) or Base plus worked (the wage plus what they worked).
- Production share: how much of this wage is production work. 100 means always, 0 never, half the week on production 50. That share is costed through operations, not spread as overhead.
- Currency.
Wage agreed net. Where wages are agreed as the figure that lands in the hand, click Wage and piece rates and use Quote net. Enter the net amount and Keelvy works out the gross wage to save, the net and the employer cost. If it cannot reach the figure to the cent, it says what the closest wage pays.
Where pay comes from
Section titled “Where pay comes from”A person is paid from one source: the timesheet, production operations or piece work. See See which source pays a person.
Employees, contractors and freelancers
Section titled “Employees, contractors and freelancers”Engagement, under Tax and settlement, decides what happens when you pay:
- Worker (payroll): the amount goes through the person’s tax profile. You see gross, what is withheld and the net that reaches their hand, and a payslip is kept.
- Contractor and Freelancer: paid the full amount as a direct payout. No withholding and no payslip. They handle their own taxes.
A contractor who fills in a supervised timesheet every day may look to an inspector like an employee. Keelvy does not stop you from setting it up that way.