Terminology - EDMA Systems

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Adjustments: A special type of earning or deduction in EDMA, that can be input to the pay period per employee. These are not posted per day as with normal earnings, leave and allowances and are not calculated by the shift rule. These can be added to employees pay period summary and exported to payroll to deduct or pay special earning types such as Back pay or if an employee takes a loan, the loan deduction can be added to EDMA and exported to payroll in the batch.

Allowances: Allowances are usually set up as an added extra payment rule for shift work. The most common allowances are Night Shift allowance and Evening Shift allowance and employees are paid extra for working a night or evening shift. These can be set up to be a percentage of the rate of pay or a set value per shift or simply a count of how many shifts of this kind are worked. These are matched to payroll and then exported to payroll once EDMA has done the calculation for what to pay the employee based on the rules.

Basic salary: This is the basic salary that an employee will earn for normal time worked in a pay period. Otherwise known as Normal time on the payslip. The term Basic salary is usually used to describe the usual pay for worked done by a permanent employee in each pay period. Each company has its own rules of what this may be made up of but usually it is just normal time hours.

Branch: This is usually a geolocated branch location, however in EDMA this can be a grouping and function within the system to identify different regions or locations where a group of employees belong.

Cost centre: A department or function within an organisation that does not directly add to profit but still costs the organisation money to operate. In EDMA employees can be costed to various cost centres based on where they work outside of their usual department. This helps the company to cost the employees time more accurately against the work done rather than creating theoretical percentages of time and cost.

Cost to company: The total cost of an employee to the company and includes earnings such as Basic salary but can also include statutory company contributions such as unemployment insurance, skills development and workmen’s compensation contributions, RA or provident funds and other types of fringe benefits the company might offer.

Department: Separate divisions of a company that can be organised by a number of parameters. In EDMA employees are allocated to a department based on the company set up and requirements.

Direct report: A specified employee or manager in the system that employees are required to report to and the same employee or manager is responsible for approving leave for those employees.

Earnings: Various earning types that payroll sets up in order to pay employees. EDMA is set up to match these earnings types and calculates how many hours to pay to each earning, based on the shift rule set up. These are exported to payroll to pay the employees. Each company has their own set of earning types which might be based on the industry they are in or the policies they have created. The most common earning types are Normal time, Overtime 1.5 and Overtime 2.

Employee code: An employee is allocated a payroll number or company number in the payroll system, this is used by EDMA to identify the employee and export to payroll to pay the employee.

Grace period: A period of time allocated to a shift rule that allows an employee a grace for being late, or leaving early and for spending extra time on a break before being deducted any extra time from the employees pay.

Gross salary: The total sum of earnings, leave, overtime pay, allowances and any other earnings an employee might have before deductions are made.

Leave types: These are leave types that an employee is entitled to be paid for whilst not at work, depending on the company leave entitlement policies. These can be set up to pay an employee per hour, per shift hours or per day for being on leave. These are set up to be matched to payroll and then exported to payroll for payment.

Lunch break: An allocated timeframe that the shift will deduct or pay for the employee to be on a break and not working.

Nett pay: The total remuneration after deductions. The Gross pay less deductions equals Nett pay that will be paid into the employees bank account for that pay period.

Normal time: The standard hours the employee will be required to work each month and will be compensated for at a rate of one times their rate per hour multiplied by the hours worked or a day rate multiplied per day worked or a monthly pay rate x each month worked. Companies rules may differ depending on what industry and region the company is in.

Onboarding: The action or process of integrating a new employee into an organization or loading an employee onto the EDMA system and initially setting up a customer on EDMA.

Overtime 1.5: Hours over and above the normal time hours worked and is compensated at a rate of one and a half times the rate per hour for every hour worked. Usually this is work on weekends or special days but each company and region has different rules regarding overtime 1.5 and when it is applied.

Overtime 2: Hours over and above the normal time hours worked and is compensated at a rate of two times the rate per hour for every hour worked. Usually this is work on weekends or special days but each company and region has different rules regarding overtime 2 and when it is applied.

Pay group: This is a grouping of employees that will have the same frequency of pay and payroll company export number in EDMA.

Pay period: A timeframe and frequency of pay in each pay cycle in payroll. It has specific start and end dates, which payroll requires in order for the employee to be remunerated for hours worked during that specific period in each cycle.

Public holiday or bank holiday pay: Pay for hours worked on special days that government bodies have declared are off days for the public, if this day falls on a day where an employee would usually be required to work, the employee is still compensated for not attending work and where an employee does work, he/she will get a special pay calculation. Each country has a set of public holidays or bank holidays that signify special meaning for having this day off.

Report centre: A user, function or theoretical centre that employees are required to report to. In EDMA, a report centre has multiple uses and functions.

Shift: A set of rules applied to an employee each day that determines how the employees work hours are calculated for payment.

Shift assignments: These are specific to EDMA and gives the EDMA user the ability to allocate employees to shifts and assignments for that shift duration, this allows EDMA to cost the employees time, and pay the employee by the shift assignment.

Shift grouping: A group of shift rules and how they are applied each day of the week.

Timesheet: A document that outlines the employees hours worked in a given pay period. On EDMA, timesheets are live, in real-time and online and not a paper based item. Although they can be exported into excel as a report.

Timesheet status: The status of timesheet approvals throughout the pay period. Each EDMA user has special timesheet approval access defined in their user access set up, this is to ensure segregation of duties of each user while timesheets are prepared for payroll. Status actions usually follow this process flow, Check the day, Certify the week, Approve the pay period and Authorise for payroll. Payroll can then batch the timesheets and export to payroll.