Payroll defaults

The defaults behind every payslip.

Proration basis, unpaid leave treatment and working days decided once, so partial months are handled the same way every time.

Capabilities

The defaults you set

Proration basis

How a partial month is divided when someone joins or leaves mid period, by calendar days or working days.

Standard working days

The denominator used for proration, or the calendar if you would rather it followed the month.

Unpaid leave treatment

Whether payable days are reduced by unpaid leave taken in the period, applied consistently rather than case by case.

Default tax and signatory

A default tax percentage unless a contract overrides it, and the signature stamped on payslip PDFs.

In the product

Defaults applied when payslips are generated, overridable per contract.

The hardest part of a payroll run is rarely a full month. It is the joiner who started on the eleventh, the leaver who finished mid-week, and the person who took three days unpaid.

  • Proration basis
  • Standard working days
  • Unpaid leave treatment
  • Default tax and signatory
app.teamio.io
Payroll settings for default tax percent, proration basis, unpaid leave and standard working days
Defaults applied when payslips are generated, overridable per contract.

Payroll defaults

Partial months are where payroll breaks

Each of those needs a rule, and the rule needs to be the same every time or two people will calculate the same month differently.

Tax and payroll configuration documents on a desk

By the numbers

What it looks like in practice

These are defaults, not constraints. An individual contract can override the tax treatment, while everyone else follows the rule without anyone thinking about it.

2

Proration bases to choose from

Set once

Applied to every partial month

Override

Per contract where it differs

Stamped

Signatory on payslip PDFs

In practice

A joiner, a leaver and an unpaid day

Three cases that need a rule, and what each default decides about them.

  1. Someone joins on the eleventh

    Proration basis decides whether they are paid for twenty calendar days or the working days remaining, which can differ by a meaningful amount.

  2. Someone leaves mid-week

    The same basis applies in reverse, and the final settlement carries any outstanding leave or loan balance alongside it.

  3. Three days unpaid leave

    Whether payable days reduce is a setting rather than a judgement, so two people calculating the same month reach the same figure.

  4. A short month

    The standard working days figure fixes the divisor, which is what stops February producing a surprise for everyone.

  5. An individual contract

    Overrides the default where an agreement genuinely differs, without anyone else being affected.

Compared

The same joiner, two proration bases

Someone starting on the eleventh of a thirty-day month with twenty-two working days.

BasisDivisorResult
Calendar days3020 of 30 days paid
Working days22Working days from the 11th onward
Fixed 30-day month30Consistent divisor every month
Contract overridePer contractWhere an individual agreement differs

FAQ

Common questions

Which proration basis should we choose?

Calendar days is easier to explain to employees. Working days better reflects what was actually owed. Either is defensible provided it is applied consistently and matches what your contracts say.

Can an individual contract override these?

Yes. These are defaults. A contract can specify different tax treatment or proration, while everyone else follows the rule without anyone thinking about it.

Does the signatory appear on every payslip?

The uploaded signature is stamped on generated payslip PDFs, so they do not need signing individually.

See it running on your own data.

We will show the module working against records that look like yours, not a generic demo.

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