Table of Contents:
Understanding Payroll Preparation
1. Does Leapsome process payroll or just prepare data?
2. What is the purpose of the Payroll module?
3. What is included in a payroll export?
Setup & Configuration
4. How do you set up different compensation types?
5. How do you define payroll policies and cycles?
6. Can you set up different payroll frequencies for different employee groups?
7. Which absence types are included in payroll?
Integration with Other Modules
8. How does payroll connect to time tracking?
9. How are absences reflected in payroll?
10. Can you link performance or goals to compensation?
Data Management & Exports
11. How do you export payroll data?
12. How do you bulk import compensation data?
13. What highlights or alerts exist for payroll changes?
14. Can you track historical salary changes?
15. Are there bulk update options for salary and compensation data?
Working with External Providers
16. Does Leapsome integrate with payroll systems like DATEV, Xero, or ADP?
17. Can we use Leapsome with a PEO like Justworks or TriNet?
18. Are payroll tax filing services supported?
Troubleshooting
19. How are changes in payroll reflected in the cycle?
20. Can I see what changes are pending before a payroll cycle is finalized?
21. Why can't I update hours worked for an hourly employee when time tracking is disabled?
22. What happens if employee data changes mid-payroll cycle?
Understanding Payroll Preparation
1. Does Leapsome process payroll or just prepare data?
Leapsome is for payroll preparation and tracking, not for processing payroll. This is one of the most common points of confusion. Leapsome acts as a centralized source of truth for compensation data, contract changes, absences, and time tracking. It prepares clean, accurate data that can be exported and shared with your payroll processor, accountant, or external payroll provider. If you use a PEO (Professional Employer Organization), you can still use Leapsome for tracking compensation and receiving change notifications, while the PEO handles the actual payroll execution.
2. What is the purpose of the Payroll module?
The Payroll module streamlines payroll preparation by centralizing all relevant employee data—including compensation, absences, time tracking, and contract changes—in one place. It automates data consolidation, reduces manual errors, provides structured exports, and maintains an audit trail of all changes. This saves HR significant time before payroll deadlines and ensures accuracy in employee payments.
3. What is included in a payroll export?
A payroll export includes base salary, bonuses, additional compensation (e.g., allowances, work-from-home budgets), absence deductions (paid vs. unpaid time off), logged hours (for hourly employees), overtime calculations, contract changes (e.g., salary increases, promotions, new hires, terminations), and bank details. The export can be customized to include the specific fields your payroll system or provider requires, and it can be generated in Excel or CSV format.
Setup & Configuration
4. How do you set up different compensation types?
Admins can define various compensation types including:
- Salary: Base compensation amount
- Bonuses: Can be quarterly, monthly, performance-based, or one-time
- Additional compensation: Such as work-from-home budgets, allowances, or stipends
Each compensation type can be configured as fixed or variable, one-time or recurring (with defined frequency of recurrence). You can also specify whether it's taxable or non-taxable, and set up approval workflows for compensation changes.
5. How do you define payroll policies and cycles?
Admins can define payroll policies that include when the payroll cycle starts, how frequently employees are paid (e.g., weekly, bi-weekly, monthly), the payroll approval date, and the submission deadline. You can then assign these policies to different employee groups. The system will automatically generate payroll cycles based on these settings, eliminating manual cycle creation.
6. Can you set up different payroll frequencies for different employee groups?
Yes, you can create multiple payroll policies with different frequencies and assign them to different employee groups. For example, hourly employees might be paid weekly, while salaried employees are paid monthly. Each group will have payroll cycles generated automatically according to their assigned policy.
7. Which absence types are included in payroll?
You can define which absence types should be included in payroll calculations and exports. For example, paid vacation would typically be included to ensure employees receive their regular compensation during time off, while unpaid absences might result in deductions. This configuration ensures that the payroll export accurately reflects how each absence type should impact employee pay.
Integration with Other Modules
8. How does payroll connect to time tracking?
Hours worked from the Time Tracking module can automatically flow into payroll calculations and exports. This is especially useful for hourly employees, where compensable time (actual work hours minus breaks) needs to be accurately captured. When you generate a payroll cycle, the tracked hours from the Time Tracking module are included, eliminating the need for manual data entry and ensuring accuracy.
9. How are absences reflected in payroll?
Absence data automatically populates in payroll reports based on your configuration. The system distinguishes between paid time off (where employees continue to receive compensation) and unpaid time off (which may result in deductions). When you export payroll data, you'll see a clear breakdown of how absences have impacted each employee's compensation for that cycle.
10. Can you link performance or goals to compensation?
Yes, you can connect quarterly performance bonuses to goal progress or review outcomes. This allows for a more integrated approach where compensation decisions are informed by performance data captured in other Leapsome modules. However, the final compensation amounts still need to be approved and entered by admins before being included in payroll exports.
Data Management & Exports
11. How do you export payroll data?
Navigate to the Payroll module and select the relevant payroll cycle. You can export the data to Excel format with all compensation components included. The export can be customized to include the specific attributes your payroll system or provider needs. The export typically includes multiple tabs, including a "Salary changes" tab that specifically tracks changes to salary-related information, making it easy to review what has changed since the last payroll cycle.
12. How do you bulk import compensation data?
You can bulk upload compensation assignments to avoid manual one-by-one entry. Navigate to Settings > Excel Imports > Salaries. Download the template, populate it with your compensation data, and upload it. This is particularly useful when setting up salaries for a large group of employees or when making bulk compensation adjustments.
13. What highlights or alerts exist for payroll changes?
The system includes tags and highlights for significant changes such as salary increases, promotions, new hires, terminations, and changes to bank details. These alerts help you quickly identify what has changed since the last payroll cycle and ensure that nothing is missed. The system also flags issues like bank details in the wrong format, helping prevent payment errors.
14. Can you track historical salary changes?
Yes, you can import and track historical compensation data. All salary changes are timestamped and tracked, creating an audit trail. You can view salary history in employee profiles, showing when changes occurred and who approved them. This is valuable for compliance, reporting, and understanding compensation trends over time.
15. Are there bulk update options for salary and compensation data?
Yes, users with appropriate permissions can adjust payroll information and import bulk data, including updates to salary and additional compensation. Navigate to Settings > Excel Imports > Salaries to use the bulk update functionality.
Working with External Providers
16. Does Leapsome integrate with payroll systems like DATEV, Xero, or ADP?
Leapsome has a direct integration with DATEV (the largest payroll provider in Germany) available as an add-on. ADP integrations are currently in development, with more integrations planned. For other payroll systems, payroll data can be exported in Excel format, with options to customize report attributes and adapt them for CSV file imports to other payroll systems. The flexible export functionality means you can work with virtually any payroll provider.
17. Can we use Leapsome with a PEO like Justworks or TriNet?
Yes, many organizations use Leapsome alongside a PEO. In this setup, Leapsome serves as the single source of truth for compensation, contract changes, absences, and time tracking, while the PEO handles payroll execution and compliance. You export the payroll data from Leapsome monthly (or at your chosen frequency) to keep the PEO up to date. This combines the operational support of a PEO with the control and flexibility of your own connected HRIS.
18. Are payroll tax filing services supported?
Leapsome does not directly file taxes with agencies. However, we can recommend partner agencies if needed. With Leapsome payroll preparation, you can export a clean, accurate Excel sheet that tax agencies or external payroll providers can work with. This simplifies handoffs and ensures data accuracy.
Troubleshooting
19. How are changes in payroll reflected in the cycle?
Changes in payroll are tracked and highlighted in the payroll cycle and in the Excel export. The export includes a "Salary changes" tab that specifically tracks changes to salary-related information, making it easy to review all changes before pushing data to other systems. This ensures transparency and helps catch any errors before payroll is processed.
20. Can I see what changes are pending before a payroll cycle is finalized?
Yes, you can review all pending changes and approvals before finalizing a payroll cycle. The system provides a clear view of what has changed since the last cycle, including salary adjustments, new hires, terminations, and other compensation changes. Only approved changes are included in the payroll export, ensuring accuracy and control.
21. Why can't I update hours worked for an hourly employee when time tracking is disabled?
If the Time Tracking module is disabled for your account, you won't be able to automatically pull hours worked into payroll. In this case, you would need to manually enter hours worked for hourly employees, or enable the Time Tracking module to automate this process. Contact your admin to discuss enabling time tracking if you need this functionality.
22. What happens if employee data changes mid-payroll cycle?
Changes made to employee data (such as salary adjustments, title changes, or contract updates) can be scheduled with an effective date in the Employee Data module. These changes will automatically update when the effective date is reached. When you generate a payroll export, the system uses the data that was effective during that payroll period, ensuring accurate compensation based on the correct information for that time frame.