What is an Ad-hoc Payroll Cycle? Definition and Use Case Example

The Ad-hoc Cycle is designed for non-salary payments. This cycle will be processed separately from the regular salary cycle.

The Ad-hoc cycle is an optional payroll cycle available every payroll month. HR can choose whether or not to utilize it.

This cycle is specifically designed for non-salary payments, such as expense claims, commissions, or bonuses, etc that need to be processed separately from the regular salary payment cycle.

When running an Ad-hoc cycle, you may notice that the basic salary is displayed as RM 0.00/SG$ 0.00. This is not an error; it's intentional since the Ad-hoc cycle is meant for non-salary payments, which is why the basic salary appears as zero.

Key Benefits of Using an Ad-hoc Cycle

  • Separate Non-Salary Payments: Allows HR to process bonuses, commissions, or allowances without reopening the regular payroll cycle.
  • Risk-Free Payroll Adjustments: Keeps the original payroll records intact while handling additional payments.

Common Use Case for Ad-hoc Payroll Cycles

Use Case 1:

After completing the end-of-month payroll cycle and making payments to employees, HR may need to pay commissions to a few employees. In such a scenario:

  • HR prefers not to reopen the closed payroll cycle, as doing so could be risky and might alter the original payroll records.

In this case, using an Ad-hoc cycle is the best solution.

Use Case 2:

HR wants to process Bonus payroll separately from Salary payroll. The salary will be paid first, and the bonus will be paid in a different week.

By separating the Bonus payroll cycle, the system will calculate EPF and PCB separately for each cycle and pay item. This makes it easier to generate a payroll report specifically for bonuses, including the EPF and PCB deductions from the bonus only.

In this case, using an Ad-hoc cycle is the best solution.

*Note:

The Ad-hoc cycle is not suitable for processing a resigned employee’s salary. If you need to pay a resigned employee’s salary separately from current employees, please create a new payroll cycle template in the payroll center's settings.

For more information on processing salaries in a separate cycle for resigned or terminated employees, please refer to this article:

How to Process Salaries for Terminated Employees in a Separate Payroll Cycle


How to Set Up an Ad-hoc Payroll Cycle

 

To learn how to run an ad-hoc cycle, please refer to the video below.

To learn how to bulk upload pay item amounts for multiple employees in the Ad-hoc cycle, please check out [this guide].

 

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