This article covers information about salary payments in Procountor. The payment aspect of the salary process is the main focus on this page. Further information about salary process can be found here.
Preparing Procountor environment for salary payments
1. Choose the accounts, where the salaries are going to be paid. The accounts are chosen in Management > Company info > Bank account information.
- Select the accounts on Bank account information view, and for those accounts, choose the columns Bank transfer and Salary payments.
2. Before using the bank connections, confirm from your bank, that needed payment services are in use for the accounts you want to use.
3. In order to be able to pay salaries, user must have rights to use payments and salary payments and at least have rights to view payroll accounting.
- Further information:
Paying the salaries
- Salaries can be paid with Salary payment function and with Bank transfer function.
- When using Salary payment function, the whole salary list is paid at once, and the salaries will be in employees’ accounts on the next day after the due date, regardless of the bank they are using, as long as the bank account is Finnish.
- Salaries can be paid to foreign accounts by using the Salary payments -payment method as well, but the account must be in IBAN form and the payment process takes more time, which means, that the salary will not be on employee’s bank account the next day after the due date. If the foreign account is not in IBAN form, salaries cannot be paid using Salary payments -payment method. In these cases, salaries must be paid using Bank transfer payment method, which is discussed in the end of this article.
- Salary payments -payment method cannot be used to pay salaries outside SEPA region, i.e., when using Salary payments -payment method, a bank account in IBAN form and a BIC code are mandatory. Also, salaries must be paid in Euros.
- Due date is the day the salary is taken from employer’s account and payday is the day when the salary is transferred to employee’s account.
Paying salaries with the Salary payment function
1. Search the salary list from Salaries > Salary list search.
2. Select the salary list you want to pay by clicking the name of the list.
3. On the opening Salary list view, click the Payment button and choose Salary payment from the opening drop-down menu.
- On the opening view, you can see the information of the salary list you are about to pay.
- in order to pay the salary list, it must be at the stage Approved.
4. Review the payment information (the bank account and the due date) and if necessary, make adjustments.
- The bank accounts to choose from depend on the settings of the accounts.
- At need, the due date is possible to change.
Please note! It is very important to acknowledge weekends and national holidays when paying the salaries. If the payday is on weekend or on national holiday, the salary must be paid on the previous banking day, which means, that the salary payment’s due date must be one day before that. For example, if the official payday is Saturday 15th of June, the salary must be paid on Friday 14th of June, which means that the payment’s due date must be Thursday 13th of June.
Finnish banks have an agreement about transferring the salaries a day after the due date of the salary payments regardless of which banks customers the parties are.
5. Pay the salary list with Pay salary list button. Clicking the button opens a window, where you can see the payment information such as, the sum, the bank account and the pay day. On the window, you must confirm the payment by clicking Yes.
After the payment
- After a salary list has been queued for payment, its status will change to Payment queued, and its payment can still be cancelled by clicking on the Cancel payment button in the same Payment view. Procountor delivers salary data to banks on the due dates of salary lists.
- The status of the salary list will change to Payment sent to bank when Procountor has sent the salary data to the bank on the due date. The salary payment can no longer be cancelled at this point.
- You can view the payment information of salary lists afterwards in the Salary payment view, in which the payment dates, total paid sums of salary lists, and the bank accounts used for their payment, are saved in the Payment transactions
Banks’ payment schedules
There are bank specific schedules with processing the salary payments. Each bank has defined their own cut off time, which is the daily deadline for the salary payments. In order to be processed, the salary payment data must arrive to the bank on a banking day before the cut off time. Salary payments arriving to the bank after the cut off time will be rejected.
- In order to the salary payments to arrive in time, they should be sent from Procountor (the Pay salary list button should be pushed) in a good time before the bank’s cut off time.
- Banks are recommending to pay the salaries no later than one hour before the cut off time. This way the possible errors in connections will not affect to the payments. Also, in case of payment errors, there is more time to react and correct them.
More about payment schedules can be read here.
In case of bank rejecting the payment
- If the payment of a salary list gets rejected in a bank, and Accountor Finago gets information about it, we will inform the user, who sent the salary list to the bank, by email. In these cases, the user can delete the payment transaction from the salary list with Delete payment button on Salary payment view.
- If the payment of a salary list gets rejected in a bank, and Accountor Finago does not get information about it, user cannot delete the payment transaction from the salary list. In these cases, Procountor’s customer service will help the user with deleting the payment transaction from the salary list.
- Further information about payment errors.
Paying salaries with the Bank transfer function
Salaries, that cannot be paid with the Salary payment function, must be paid with Bank transfer function. When using the Bank transfer function, the payment is processed like all other bank transfers in a bank, which makes the Bank transfer function slower than Salary payment function. More about payment schedules can be read here.
There are two different ways to pay the salaries with the Bank transfer function. Salaries can also be paid one by one or with Payment of multiple invoices function.
Way 1: From Salary list search with the Payment of multiple invoices function.
- Go to Payroll > Salary list search.
- Choose the salary list you want to pay from the search results.
- On the opening Salary list view, click the Payment button and choose Bank transfer from the opening drop-down menu.
- On the opening Payment of multiple invoices view, review the payment information (the bank account and the due date) and if necessary, make adjustments.
- Click Pay button.
Way 2: From Salary slip search (one by one or with the Payment of multiple invoices function)
- Go to Payroll > Salary slip search.
- If needed, set the search criteria and click Search button.
- Activate the salary slip or slips you want to pay and then click the Payment button above the search results.
- After clicking the Payment button, there opens a Payment view or a Payment of multiple invoices view, depending on how many salary slips were activated.
- Review the payment information (the bank account and the due date) and if necessary, make adjustments.
- Click Pay button.