This article aims to assist you in processing employees that earn a Directors’ Fee on WorkForce Payroll, which will then be reported on the employees’ FS3s and yearly FS7.

Directors Fee (Honorarium)is the remuneration that a person acting as an Executive or Non-Executive Director earns during his employment. An Executive Director has, in many cases, a salary to which this honorarium is topped up. A Non-Executive director usually only earns the honorarium.

Step 1: Mark the employee is s/he holds a Director position within the company

1. First, go on Product Switcher, and click on People;
2. From the main menu on the left-hand side, go on Employees, and then on List;
3. Click on Edit/View to open the employee that you wish to select;
4. Go on the Payrun Adjustment tab;
5. Click on the checkbox Holds a Director Position; 
6. Click on Save.

Step 2: Adding Director Fees (Directly on the payrun or through Fixed Payroll Data)

The Director Fees adjustments can be applied to a pay run in WorkForce Payroll by using one of 2 methods:

• Method 1: Manually on a per run basis, and for every employee/director
• Method 2: Through updating employee data, using Fixed Payroll Data

 - Method 1: Manually on a per run basis, and for every employee/director

Note:  This method is required per employee per pay run

A new field Director Fees has been added into the Pre-Tax Additions tabs in the payroll calculations section as shown below.

 - Method 2: Through updating employee data, using Fixed Payroll Data

Note:  This method requires updates to be made to every employee’s data only once.

Director Fees (as well as all other Fixed Payroll Data) require a Start Run Number and Start Year. The End Run Number and End Year can be later updated to any future pay run. 

The amount inserted will be added to the employee as a pre-tax addition in each pay run until an End Run Number and End Year have been inserted by the user.

For more information on how to add a recurring and/or periodic payments (Fixed Payroll Data) on WorkForce click here.

Note: We have also added a new field as a pre-tax deduction: ‘Director Fees Counter Entry’. This field can be used if you are introducing the Director Fee in the middle of the year and would like to add the Director Fees that the employee has received so far to show these in the FS3 and FS7. For example, I am currently in a pay run7 and would like to add the Director Fee that the employee received from the beginning of the year. The way around this is to add the Director Fees to date in the ‘Director Fee’ field as a pre-tax addition, and the same amount as a ‘Director Fees Counter Entry’. As a result, the net pay for July has not been affected. From the next pay run onwards, the user can add a ‘Director Fees’ Fixed Payroll Data to show on every pay run accordingly.

Step 3: How Director Fees are shown on FSS reports?

 - Employees’ FS3s

The below is an example of an employee who has an annual salary and received monthly/quarterly/year-end Director Fee/s.

The below is an example of an employee who only receives Director Fees

 - Yearly FS7