PAYROLL: Ability to Update Pay Amount for Contractors During Payroll Processing

We’ve introduced an enhanced Fixed Compensation model for contractors that provides greater flexibility when running payroll.

What’s New

Admins can now configure contractors with Fixed compensation and update the payable amount directly during payroll processing when needed. This supports two contractor payment scenarios:

• Fixed amount every pay cycle – Contractors receive the same predefined amount each payroll.
• Fixed compensation with varying amount each payroll – No predefined amount is set, and admins can enter the payable amount during each payroll run.

Key Improvements

• No attendance dependency: Contractors with Fixed compensation are no longer dependent on attendance or working hours for payroll processing.
• Flexible payroll adjustments: For contractors whose pay varies each cycle, admins can specify or override the payable amount during payroll finalization.
• Payroll validation: If a contractor’s compensation is marked as “Amount varying each payroll,” payroll will prompt admins to enter the amount before processing.
• Import enhancements: Payroll imports now support a Fixed earning component with an Amount column to easily upload contractor pay data.
• Exit settlement support: Admins can enter the final payable amount for contractors with varying pay during exit settlements.
• Pay stub clarity: Contractor pay stubs will clearly show fixed earnings under the contractor earnings section with the paid amount and YTD (if enabled).
• Mobile updates: Contractor compensation details and pay revisions for both fixed and varying pay types are now visible on mobile.

Additional Changes

• ‘Per annum’ compensation type removed for contractors to better reflect contractor pay structures.
• Multiple pay rates are not supported for contractors using Fixed compensation.
• Activity logs will capture all updates related to contractor compensation.

Why This Matters

This update aligns contractor payroll with real-world payment practices such as lump-sum payments, milestone-based compensation, or ad-hoc negotiated pay, eliminating workarounds like entering dummy hours and reducing payroll errors or manual adjustments.

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