Navigation:  Settings > Payslip Items > Employer Contribution Items

Employee contribution items are special items which represent earnings and deductions at the same time.

 

For example if must contribute certain percentage of employee gross pay into employee pension fund, this would be employer contribution as the money is earned by employee but deducted from their gross pay at the same time to be payable to their pension fund instead.

 

Another example is if you maintain some matching program where you add to an employee's charity contribution. Through a matching gift program, your policy might be to double or even triple an employee's contribution toward a charity.

 

When you setup an employer contribution item, you need to select an expense account (e.g. Wages and salaries or Charity contribution). And at the same time you also need to select a liability account (e.g. Payroll liabilities or Charity contribution payable).