Pay Categories are used to define the rates that employees are paid. Configuring your employee's pay category help simplify the management of employee pay rates by:
- Automatically calculating linked rates through loading and penalty rate multipliers;
- Configuring super rates;
- Configuring leave accrual.
When you create a new business, a number of common pay categories have already been created, however, you are able to create new ones that match your business needs. This article will show you how.
When setting up a new employee, once you select the relevant 'Employment type', the primary pay category (and leave allowance template) will pre-fill according to the selection. For example, in the screenshot below the 'Full Time' employment type dictates the 'Permanent Ordinary Hours' pay category that you can see:
Provided that you have not configured a pay rate template, you will then be able to manually set the rate for the employee. After the base rate has been set, you are able to go into the Employee file > Pay rates page and view the rate of any linked pay categories (e.g. overtime), as well as the applicable super rate:
The primary pay category will be used as the default when paying normal work hours, or when paying leave, if the leave category is set pay 'the employees usual rate of pay'. If you are wanting to pay using one of the linked pay categories instead, ensure the specific pay category is selected within the pay run or timesheets. If you are using rule sets, these will be selected automatically when required.