In order to update an employee's pay run settings, click on Pay Run Defaults under the Pay Run Settings heading from within the employee's file.
The page may be divided into two sections. The upper section is the 'automation features' section. In this section, the award/employment agreement for the employee may be configured along with the pay rate template and timesheets settings. The 'Award' field will only appear in businesses that have installed Awards in the business, created their own Award or Agreement.
Please note that selecting an Employment Agreement will automatically enable timesheets because timesheets are required in order for the award interpretation to function. Additionally, the following fields will pre-populate based on the Employment Agreement settings:
- Pay Rate Template
- Pay Rate - you can override the hourly rate pre-populated by following these instructions.
- Rate Unit
- Job Title - this uses the Employment Agreement name by default but can be overridden. Simply type the desired job title name and click on 'Save'.
- Pay Condition Rule Set
- Apply the following Leave Allowances Template - this field will list all leave allowance template (LAT) options from the Award so ensure you assign the correct LAT and click on 'Save'.
- Primary Pay Category
- Super Threshold
- Quarterly maximum super contribution base
Additionally, we bring your attention to the following settings:
- Primary Location: all employees must be assigned a primary pay category so the system knows where to cost earnings, deductions and leave if there is no other location assigned. Employees can be assigned to more than one location however. Refer here on how this is done.
- Notifications: You will note that notification modes are split between pay slips and rostering. If the business does not utilise the rostering feature then there is no need to apply a setting. Regarding pay slips however, you can only choose 'Email' if there is an email address recorded in the employee's file. Also, please be advised that assigning 'SMS' as the pay slip notification type will incur a cost per sms sent.
- Super Threshold: This is the minimum OTE amount an employee must be paid in the month before super is calculated in the pay run. By default, the amount is $450 (as per legislation) however you can override this amount (if the employee is not attached to an Employment Agreement). For example, if you did not want a restriction applied here and rather the employee should receive super for ALL OTE earnings then you would override this amount to '0' and click 'Save'.
- Quarterly maximum super contribution base: This is the maximum quarterly OTE earnings amount used to calculate super for the employee. The default amount in this field is as per legislation and will update automatically accordingly each financial year. This figure can be overridden (if the employee is not attached to an Employment Agreement).
- Payroll Tax: Where an employee is exempt from payroll tax, you must select this checkbox. This will then ensure that the figures displaying in the payroll tax report reflect this setting and does not include the employee earnings in payroll taxable earnings.
- Single Touch Payroll: Information on closely held employees can be found here. If an employee fits the definition and you DO NOT want to report them through STP, then select this checkbox. If an employee is defined as closely held but you still want to report them through STP, then do not select this checkbox.
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