There are Four settlement process types when processing the Final Settlement. The details are as under:
If the salary should be kept HOLD for an Employee, then this process needs to be selected.
The Employee's name will reflect at the bottom of the Salary Register under “Pay Block”.
The Bank Advice will not include that employee's name.
While processing FFS, the Withheld amount would also be paid.
For example, if an Employee has tendered Resignation in June and the last working date is in Sept 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, and Aug would be paid as a “Withheld” amount along with Sept month salary; the same can be seen in the FFS report.
Stop Pay Process
By opting for this, Salary will not be calculated from the Resignation month to Last Working Month.
During the FFS process, that amount will reflect as Arrears/Recovery.
The Employee's name will be reflected at the bottom of the Salary Register under the “Stop Pay Process”.
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, there would be no payment paid to this employee for June & July month. When the FFS process is done then June & July salaries will be paid out as Arrears/Recovery.
Current Month FFS
When the Resigned date and LWD (Last Working Date) 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 the “Current Month FFS” head.
The Bank advice would include the employee's name.
For example, if an Employee has tendered Resignation on the 8th of a month and the LWD is on the 23rd of the same month, then this type should be selected.
Previous Month Settlement
This method is applicable in the following cases:
- When the User gets late input from Employees
- If the employee has Resigned / Terminated in previous months
How this works –
For instance, Payroll for an Employee has been processed till November 2022.
And only now, the User / HR comes to know that this Employee had resigned/was terminated on 11th September 2022.
Then, all the Attendance dependent components, already paid out to date, would appear under Recovery in the FFS.
Example: - i.e. Basic recovery HRA recovery
Note: Any Statutory amount already deducted cannot be recovered.
Users 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.