CustomPayTypeWalkthrough_EmployeeProfile

This is

The Value of the Rate

Set the Rate for calculations here.

Allowance & Payment Rate*enter a 1 here, (positive)then enter the amount in the timesheet.

Deduction Rate*enter a -1 here, (negative)then enter the amount in the timesheet.

For clarity and future-proofing, it is best practice to set the rate at 1 or -1, and then enter the amount in the timesheet. When the amount changes, you don't have to create a new pay type. Alternatively, you can also enter the amount in the Rate section and put a 1/-1 in the timesheet.

This is the

Timesheet Calculation Value of the Rate

Select what the calculation should be based on: per unit| per hour | per day| per week | per year. This will differ depending on the type of custom pay you are creating.

If you are unsure, set to calculate per unit.

This is the

Section

Tracking Codes

Enter the Tracking Codes this pay type must be tracked against.

Using tracking codes is helpful for reporting and Xero integration purposes.Follow this link to find out how Tracking Categories and Job Codes work.

This is an optional step. If you don't use tracking, simply leave this section blank.

This is where you create

Non-taxable Custom

Pay Types

Use this area to set up after-tax custom pay types:

• after-tax allowances & reimbursements
• after-tax deductions
• to add information to the payslip, such as date of birth
• payments that do not become part of Gross

This is where you create

Taxed Custom

Pay Types

Use this area to set up taxable custom pay types:

• different pay rates and job codes
• lump sum payments & bonuses
• taxable allowances - taxed as part of Gross
• taxable deductions - taxed as part of Gross

This is where you

Delete a Custom Pay Type

Click this (-) button to remove a custom pay type.

Deleting the custom pay type makes it unavailable to use going forward.*However, the history of this pay type use will still be available in Quick Reports. This pay type will show up for selection in the report.

This is where you

Create a New Pay Type

Click this (+) button to create a new pay types field, so you can set up this custom pay type.

Be sure to create this new field in the section you want:

• Normal (taxed), or
• Non-taxable

The section heading matters, as it dictates the pay type tax calculation.

This is

The Pay Type's

Name

Type a name here that is recognisable in a payslip to ensure clarity.

You have a limited number of characters, so be concise. Use inter-capitalisation to shorten your text.e.g. 'WeatherAllown' instead of 'weather allowance'