Let's begin with setting up payroll profiles, the initial step in generating payroll which is crucial as they determine the contract and amount for each provider in the practice.
Let's get started with creating a payroll profile in CareStack.
Topics Covered
Create a Payroll Profile
To create a Payroll Profile, perform the steps below.
- Navigate to the System Menu > select Payroll.
- Select Payroll Profiles.
- Click + Create Payroll Profile.
- If you are paying your provider based on percentage of production, click Production.
- If you are paying your provider based on the percentage of collection, click Collection.
Payroll based on Production
Explore this video for an in-depth walkthrough.
- Practices have the option to select either Net Production or Gross Production for Pay Calculation. This choice determines the way in which you intend to compensate your provider.
- Net Production refers to the total production that includes fee updates and sections based on the transaction date while considering all production adjustments.
- Gross Production refers to the total dollar value from completed procedures based on the transaction date and does not include adjustments.
- You can also Customize Calculation where you can Exclude Specific Production Adjustments if Net Production is selected.
- Practices can also add Migrated Production to the payroll amount during the pay calculation.
- To deduct data points from payroll, click the Deductions header to expand the section, then select the data points you need to deduct.
- Income Reduction deducts income reduction receipts against the provider in payroll calculation.
- Procedure Code Exclusion can be used to Exclude Specific Codes in payroll calculation.
- Membership Credits deduct membership credits in payroll calculation.
Once you have configured the pay calculation, head over to the Pay Allocation section. To allocate pay, you have have the option to select either Fixed Share or Performance Tier.
- By selecting Fixed Share, you can pay the providers a consistent fixed payout.
- Enter the Percentage Share.
- By selecting Performance Tier, you can pay the provider based on their performance.
- Enter the From and To dollar amount and the Share percentage.
- Click Save.
To set a Minimum Guarantee,
- Click Set Guarantee (Minimum Guarantee amount is a fixed rate of pay, regardless of earnings made. This can be set up at provider level as well).
- Enter the Guaranteed Amount.
- The Payout is calculated based on the greater of the minimum guarantee or earned share percentage.
To deduct the lab cost percentage from the payroll amount,
- Click the toggle button for Lab Case Deduction to enable it.
- Enter the Percentage Deductions.
- Click Save.
A Save Payroll Profile pop-up will appear,
- Enter the Name and Description for the profile.
- Click Save.
- To proceed with assigning providers right away, click Save & Assign Providers.
Payroll based on Collection
Watch this video for a comprehensive walkthrough.
- Practices have the option to select either Net Applied Payment or Applied Payment for Pay Calculation when payroll based on collection is selected.
Net Applied Payments refers to the total of payments applied to completed codes and collection adjustments based on transaction date.
- Click Customize Calculation to make changes to the applied payment calculations.
- Select the required data points and mark those you want to exclude.
- Exclude Specific Collection Adjustments
- Exclude Specific Payment Category
- Exclude Specific Payment Type
- Once completed, click Done.
Applied Payments refer to the total amount of payments applied to completed codes based on the transaction date and does not include adjustments.
- Click Customize Calculation to make changes to the applied payment calculations.
- To customise, select the required data points and mark those you want to exclude.
- Exclude Specific Payment Category
- Exclude Specific Payment Type
- Once done, click Done.
- Practices can also add the following data points to the payroll amount during the pay calculation:
- Advance Payments where the advance payments will be considered and deduct the allocated advance payments.
- Provider Adjustment Options to allow provider adjustments to be considered in payroll calculation.
- Practices can deduct the following data points from the payroll amount during the pay calculation.
- Income Reduction to deduct income reduction receipts against the provider in payroll calculation.
- Procedure Code Exclusion to exclude specific codes in payroll calculation.
- Payments from Migrated Receipts to deduct payment from migrated receipts in payroll calculation.
Once you have configured the pay calculation, head over to the Pay Allocation section. To allocate pay, you have have the option to select either Fixed Share or Performance Tier.
- By selecting Fixed Share, you can pay the providers a consistent fixed payout.
- Enter the Percentage Share.
- By selecting Performance Tier, you can pay the provider based on their performance.
- Enter the From and To dollar amount and the Share percentage.
- Click Save.
A Save Payroll Profile pop-up will appear,
- Enter the Name and Description for the the profile.
- Click Save.
- To proceed with assigning providers, click Save & Assign Providers.
| Note: Once the payroll profile is created, the number of providers assigned remains 0, as the profile is not yet linked to any providers. |
- You can click View to review the information entered when creating the payroll profile.
- You can also click on the three-dott menu and choose the following options to customise at the end of the payroll profile.
- Edit to add or update the calculation.
- Delete to delete the payroll profile.
- Duplicate to replicate the payroll profile.
Practices can use this guide to gain a clear insight into creating a payroll profile within CareStack.