There are Four types of settlements during FFS and each has got its own importance. The details are as under:
If the salary should be kept HOLD for an Employee, then this process needs to be selected.
Then that Employee will be reflected at the bottom of the Salary Register under “Pay Block” head.
And the Bank advice would not fetch resigned employees’ name.
While processing FFS, the Withheld amount would also be paid.
For example, an Employee has tendered Resignation in June and last working date is in Sept month and the Employer does not want to clear this as of now, then this option should be selected.
While processing FFS, then the unpaid amount of Jun, Jul, Aug would be paid as “Withheld” amount along with Sept month salary; same can be seen in FFS report
Stop Pay Process
By opting this, Salary would not get calculated from the Resignation month to Last Working Month.
During FFS process, that amount would reflect as Arrears/Recovery and paid out for Resignee.
Then that Employee will be reflected at the bottom of the Salary Register under “Stop Pay Process” head.
For example, assume an Employee has tendered Resignation in June month and Last Working Date falls in July month.
If this process type is selected then, nothing would be paid out to this Employee for June & July months’, when FFS process is done then June & July salary will be paid out as Arrears/Recovery.
Current Month FFS
When the Resigned date and LWD are both in the same month, then this process needs to be selected.
Then that Employee will be reflected at the bottom of the Salary Register under “Current Month FFS” head.
And the Bank advice would duly reflect his or her name.
For example, if an Employee has tendered Resignation on 8th of a month and the LWD is on 23rd of the same month, then this type should be selected.
Previous Month Settlement
When the User gets late input of Employees having Resigned / Terminated in previous months
At this scenario, this option can be used.
How this works –
For instance, Payroll for an Employee has been processed till November 2018.
And only now, the User / HR comes to know that this Employee had resigned / was terminated on 11th September 2018.
Then, all the Attendance dependent components, already paid out till date, would appear under Recovery in the FFS.
Example: - i.e. Basic recovery HRA recovery
Note: Any Statutory amounts already deducted cannot be recovered.
User need to select the “Previous Month Settlement” option in the drop-down list.
Then after saving, go ahead with processing FFS as is the practice for other types.
We recommend adding employees as resigned immediately when Resignation is submitted.