Pay Types

Pay Types are used to define the rates that the employees are paid. Setting up pay types will help simplify the management of employee pay rates by:

Pay Types Classification

There are two classifications for the pay types as below:

The System pay type can be further classified as:

Setting up a Pay Type

This guide takes you through the process of creating a pay type:

  1. Access the Pay Types from the Setup menu
  2. A list of all system pay types are displayed, these types are protected from modifications and deletion.

  3. Click
  4. The new pay type window appears
    • Pay Code enter a unique code maximum 5 chars
    • Description enter a rate type description
    • Make sure to enter a unique description to represent the new pay type, the description will be used when creating a payroll payment and printing a payment slip.

    • Superannuation check this option if super applies to this pay type
    • Leave accumulation check this option if leave accrued on this pay type
    • This option should only be checked for ordinary time earnings pay types or considred as ordinary time earnings by the awards agreement.

    • Overtime check this option if this pay type is an overtime pay type payment
    • Single Touch Payroll STP phase 2 requires that all overtime payments are identified and reported as per the STP rules.

    • Paid Leave check this option if the pay type is a paid leave payment
    • Single Touch Payroll STP phase 2 requires that all paid leave payments are identified and reported as per the STP rules.

    • Fixed Amount check this option if this pay type to be set as a fixed amount instead of an hourly rate
  5. Click Save

Deleting or Updating a Pay Type

To update a pay type, click the Edit button, new pay type configuration do not apply to previous transactions such as payroll payment and will only be applied to new transactions created after the pay type update.

To delete a pay type, click the Delete button. Pay type can not be deleted if it has been used in Payroll, Timesheets, Invoices, Employees' Setting, etc.

System pay types are protected and can not be updated or deleted