HR & Payroll Knowledge Base

HR & Payroll Module Knowledge Base

Welcome to the Truebooks HR & Payroll Module documentation. This comprehensive guide covers all aspects of human resources and payroll management for GCC-compliant operations.

Table of Contents

  1. Module Overview
  2. Employee Management
  3. Document Management
  4. Leave Management
  5. Staff Loans
  6. Payroll Processing
  7. WPS Compliance
  8. Gratuity (EOSB)
  9. Company Assets
  10. Reports
  11. Settings & Configuration

Module Overview

The HR & Payroll module provides comprehensive human resources and payroll management capabilities designed for GCC region compliance. Key features include:

  • Employee Payroll Profiles: Extended employee information for payroll processing
  • Document Tracking: PRO document management with expiry alerts (passport, visa, Emirates ID, labor card)
  • Leave Management: Configurable leave types with accrual, carry-forward, and encashment
  • Staff Loans: Loan applications with EMI scheduling and payroll deduction
  • Payroll Processing: Monthly payroll runs with configurable pay heads
  • WPS Compliance: UAE Wage Protection System file generation
  • Gratuity (EOSB): End of Service Benefit calculation per UAE Labor Law
  • Company Assets: Asset assignment and tracking for employees

GCC Compliance Features

The module is designed to meet regulatory requirements across GCC countries:

Feature UAE Saudi Arabia Other GCC
WPS File Generation Yes (SIF Format) Planned Planned
Gratuity Calculation UAE Labor Law - -
GOSI Contributions - Yes -
Document Expiry Tracking Yes Yes Yes

Employee Management

Employee Payroll Profile

Each employee can have a payroll profile that extends their base employee record with payroll-specific information:

  • Bank Details: IBAN, Bank Name, Routing Code for salary transfer
  • WPS Information: MOL ID, WPS Employee ID for UAE compliance
  • Social Security: GOSI Number for Saudi Arabia
  • Tax Information: Tax ID for applicable jurisdictions

Setting Up Employee Payroll Profile

  1. Navigate to HR & Payroll > Employees > Employee List
  2. Select an employee and click Edit Payroll Profile
  3. Enter the required fields:
    • Payment Method (Bank Transfer, Cash, Cheque)
    • Bank Account Details (IBAN, Bank Name)
    • WPS/MOL ID for UAE employees
    • Basic Salary and allowance structure

Pay Head Assignment

Each employee can have multiple pay heads assigned:

  • Earnings: Basic Salary, Housing Allowance, Transport Allowance, etc.
  • Deductions: Loan EMI, Absence, Advances, etc.

Document Management

Document Types

The system tracks various employee documents commonly required for PRO (Public Relations Officer) management:

Document Type Typical Validity Alert Days
Passport 5-10 years 90 days
Visa/Work Permit 1-3 years 60 days
Emirates ID 1-3 years 30 days
Labor Card 1-2 years 45 days
Medical Insurance 1 year 30 days
Trade License 1 year 60 days

Document Expiry Alerts

The system automatically generates alerts for expiring documents:

  • Info: Document expires in 60+ days
  • Warning: Document expires in 30-60 days
  • Critical: Document expires in 15-30 days
  • Urgent: Document expires in less than 15 days

Document Renewal Workflow

  1. Alert is generated based on expiry date
  2. PRO acknowledges the alert
  3. Renewal process is initiated
  4. New document details are updated
  5. New expiry date is recorded

Leave Management

Leave Types

Configure various leave types with different rules:

Leave Type Accrual Carry Forward Encashable
Annual Leave Monthly Yes (limited) Yes
Sick Leave Upfront No No
Maternity Leave N/A No No
Emergency Leave Deducted No No
Unpaid Leave N/A No No

Leave Accrual

Leave balances are calculated based on:

  • Accrual Basis: Monthly, Yearly, or Custom
  • Accrual Rate: Days earned per period
  • Pro-rata: For partial periods (new joiners/leavers)

Leave Request Workflow

  1. Employee submits leave request
  2. Manager receives notification
  3. Manager approves/rejects
  4. Leave balance is updated
  5. Payroll is adjusted (if applicable)

Sandwich Rules

Configure sandwich rules to automatically include weekends/holidays in leave calculation:

  • If leave spans Friday-Saturday (GCC weekend), include both days
  • Configurable per leave type

Staff Loans

Loan Types

  • Salary Advance: Short-term advance against salary
  • Personal Loan: Medium-term loan with EMI
  • Emergency Loan: Quick disbursement for emergencies

Loan Application Process

  1. Employee submits loan request
  2. System checks eligibility (employment duration, existing loans)
  3. HR/Finance reviews and approves
  4. Loan is disbursed
  5. EMI schedule is generated
  6. Deductions begin from next payroll

EMI Calculation

EMI is calculated using standard amortization:

EMI = P × r × (1+r)^n / ((1+r)^n - 1)

Where:
P = Principal amount
r = Monthly interest rate (if applicable)
n = Number of months

Loan Ledger

The loan ledger tracks:

  • Disbursement entries
  • EMI deductions
  • Early repayments
  • Running balance

Payroll Processing

Payroll Cycle

  1. Draft: Payroll run is created
  2. Processing: Employee calculations are performed
  3. Review: HR reviews and makes adjustments
  4. Approved: Management approves the payroll
  5. Finalized: Payroll is locked and posted to GL

Pay Heads

Configure pay heads for earnings and deductions:

Earnings:

  • Basic Salary
  • Housing Allowance
  • Transport Allowance
  • Mobile Allowance
  • Overtime
  • Bonus
  • Commission

Deductions:

  • Loan EMI
  • Absence
  • Salary Advance Recovery
  • Insurance Premium
  • Social Security (GOSI)

Payroll Calculation

For each employee, the payroll calculates:

  1. Gross Pay = Sum of all Earnings
  2. Total Deductions = Sum of all Deductions
  3. Net Pay = Gross Pay - Total Deductions

Attendance Integration

Payroll can be adjusted based on attendance:

  • Present days
  • Absent days (with deduction)
  • Leave days
  • Holidays

WPS Compliance

Overview

The Wage Protection System (WPS) is a UAE Ministry of Human Resources initiative to ensure timely payment of wages. All UAE-based companies must transfer salaries through WPS-compliant banks.

WPS Configuration

  1. Navigate to HR & Payroll > Settings > WPS Configuration
  2. Enter employer details:
    • MOL Employer ID
    • Bank Code
    • IBAN
    • Agent Bank (if applicable)

WPS File Generation

The system generates Standard Interchange Format (SIF) files:

Header Record (EDR):

  • Employer MOL ID
  • Total employee count
  • Total salary amount
  • Payer bank details

Detail Records (SDR):

  • Employee MOL ID
  • Bank routing code
  • IBAN
  • Salary breakdown

WPS Validation

Before generating the WPS file, the system validates:

  • All employees have valid MOL ID
  • All employees have valid IBAN
  • Bank routing codes are correct
  • Salary amounts match payroll

Compliance Rate

The dashboard shows WPS compliance rate:

Compliance Rate = (Employees with Valid WPS Data / Total WPS-Eligible Employees) × 100

Gratuity (EOSB)

UAE Labor Law Calculation

End of Service Benefit is calculated as per UAE Labor Law:

Service Duration Rate
Less than 1 year 0 days
1-5 years 21 days per year
More than 5 years 30 days per year (for years beyond 5)

Calculation Formula

For employees with 1-5 years:
Gratuity = (Basic Salary / 30) × 21 × Years of Service

For employees with 5+ years:
First 5 years = (Basic Salary / 30) × 21 × 5
Remaining years = (Basic Salary / 30) × 30 × (Years - 5)
Total Gratuity = First 5 years + Remaining years

Gratuity Accrual

Monthly gratuity accrual is recorded for provisioning:

  1. Calculate monthly gratuity entitlement
  2. Post accrual journal entry (Debit: Expense, Credit: Liability)
  3. At settlement, reverse accrual and pay employee

Settlement Process

  1. Calculate final gratuity based on termination date
  2. Adjust for any deductions (loans, advances)
  3. Approve settlement
  4. Generate final payment
  5. Post GL entries

Company Assets

Asset Categories

Organize assets by category:

  • IT Equipment (Laptops, Phones, Tablets)
  • Vehicles
  • Office Equipment
  • Tools
  • Uniforms
  • Access Cards/Keys

Asset Assignment

  1. Register asset in Company Assets
  2. Assign to employee
  3. Record condition at issue
  4. Employee acknowledges receipt
  5. Track until return

Return Process

  1. Employee initiates return
  2. Asset condition is assessed
  3. Return is recorded
  4. Any damage is documented
  5. Asset is made available for reassignment

Reports

Available Reports

Report Description
Salary Register Monthly payroll summary by employee
Loan Ledger Report Loan balances and transactions
Leave Liability Outstanding leave balances and liability
Document Expiry Upcoming document expirations
WPS Summary WPS file generation history
Gratuity Provision Accrued gratuity by employee

Report Export

All reports can be exported to:

  • PDF (for printing/archiving)
  • Excel (for analysis)

Settings & Configuration

Pay Heads

Configure earnings and deductions:

  1. Navigate to HR & Payroll > Settings > Pay Heads
  2. Add new pay head with:
    • Code and Name
    • Type (Earning/Deduction)
    • Category (Fixed/Variable)
    • Include in Gross, WPS, Gratuity, GOSI flags
    • GL Account mapping

Payroll Cycles

Define payroll periods:

  • Monthly (most common)
  • Semi-monthly
  • Weekly

Document Types

Configure document types with:

  • Name and Category
  • Default alert days
  • Required/Optional flag
  • Renewable flag

Asset Categories

Set up asset categories with:

  • Name and Code
  • Depreciation method (if applicable)
  • Default useful life

WPS Configuration

Configure WPS settings:

  • Employer MOL ID
  • Bank details
  • File format preferences
  • Salary currency

Best Practices

Monthly Payroll Checklist

  1. ☐ Review attendance records
  2. ☐ Process leave adjustments
  3. ☐ Calculate loan deductions
  4. ☐ Run payroll calculation
  5. ☐ Review and approve
  6. ☐ Generate WPS file
  7. ☐ Submit to bank
  8. ☐ Post GL entries

Document Management Tips

  • Set up automatic expiry alerts
  • Maintain digital copies of all documents
  • Track renewal history
  • Assign PRO responsibilities clearly

Compliance Reminders

  • Submit WPS files before salary due date
  • Maintain gratuity provisions monthly
  • Keep employee MOL/IBAN details updated
  • Review GOSI contributions quarterly (Saudi)

Troubleshooting

Common Issues

WPS File Rejected

  • Verify MOL ID format (13 characters)
  • Check IBAN format (23 characters for UAE)
  • Ensure bank codes are correct

Payroll Calculation Mismatch

  • Review pay head assignments
  • Check attendance deductions
  • Verify loan EMI amounts

Leave Balance Incorrect

  • Check accrual configuration
  • Review carry-forward settings
  • Verify leave transactions

Support

For technical support or feature requests, please contact your system administrator or Truebooks support team.

Last Updated: December 2025 Version: 1.0
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