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Payroll policies are the rules applied to each employee when payroll is generated: social security contributions, pension funds, and recurring bonuses or deductions.

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Policy types

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Create a policy

1

Go to Human Resources → Payroll Policies → New Policy

2

Enter name and description

3

Select the type and the calculation

  • Percentage (%): applied to the salary earned in the period. Enter the value undivided (10 for 10%).
  • Fixed amount ($): constant value.
4

Define limits (optional)

Maximum limit and minimum of the calculated amount. For example, the ISSS contribution ceiling.
5

Configure the ledger accounts

6

Check Active and save

Inactive policies are kept but are not applied when generating payroll and do not appear in the deduction selection. Useful to temporarily suspend a deduction without deleting it.

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Import from templates

The templates button offers the preloaded statutory policies (in El Salvador: employee and employer ISSS and AFP). When you import a template, the form opens prefilled so you can review it, assign the ledger accounts, and save it.

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Examples (El Salvador)

When generating payroll, each policy can be turned off per employee (for example, a pensioner who does not contribute to AFP). Income tax withholding is not a policy: it is always calculated using the income tax tables.