Set up pay schedules

To add a pay schedule, click on the Add button located on the top right-hand side. You will then be required to configure your pay schedule settings as follows:

• Name: This is the name the pay run will be called and will be referenced when creating a pay run (so make sure that the pay run is clearly identifiable and recognised by all staff processing pay runs).

  Important

  The name you give a pay schedule will be included in the name of the ABA bank file downloaded from your platform (in addition to the Employing Entity and date). You should avoid using special characters and keep the names as short as possible because banks limit file name lengths (max 248 characters).

• Frequency: The options here are weekly, fortnightly or monthly. NB. This dictates the calculation of the employees' PAYG so ensure you select the correct frequency.
• Includes employees: Here you can choose from:
  • None — you could choose this option where the pay run is ad hoc in nature, e.g. it is used to process back pays or bonuses/commissions.
  • Employees with this pay schedule as their default — this is the most common setting and should be chosen where the pay run is regular in nature and employees will always be attached to this pay run.
  • Employees with timesheets in the following locations — this option should be chosen if you want to separate pay runs into locations. NB. If an employee works in more than one location and this setting is chosen, the employee could potentially be processed in more than one pay run in the same frequency and PAYG/super must therefore be manually adjusted to ensure the employee is not disadvantaged and the correct calculations are made. If you select this option, you must then enter a location or locations.
• Pay slip message: you can add a recurring note here that will appear in the 'Pay slip message' area on all pay runs for this pay schedule. This note will, in turn, appear on all employees' pay slips for the pay run.
• Pay Run Warnings: By default, all triggered system warnings will be displayed in the pay run. There may, however, be some pay run warnings that are of no relevance to a particular pay schedule and so you would prefer they are not displayed in the pay run at all. This setting allows you to configure what warnings you want displayed in the pay run. Clicking on "here" will open the context panel. Deselect the warnings you do not want appearing in the pay run. A full list and explanation of each pay run warning can be found here.

• Pay run finalisation settings: The following preferences can be configured to apply to all pay runs in a specific pay schedule:

  • Journals — this option only relates to API-integrated journals. The option to configure journals will not be available for file import journal services, e.g. MYOB. QuickBooks users also will not see this option as the journal export happens automatically as part of the integration.
  • Create pay event: Immediately / Later
  • Create super payment: Immediately / Later
  • Publish pay slips: Immediately / Manually / Date & time picker
  • Employee notifications: Send / Don't send (this option won't display if you have selected 'Manual')
  • Report packs: Immediately / Date & time picker / Do not run. If reports are configured to run, you are able to select the report packs from the available checkboxes. This option will not show if you do not have report packs configured.

  Once these finalisation settings have been configured, if you set up pay run automation, those settings will flow through to the pay run automation wizard.

• Pay run payment file: You can select a payment file to be used for this pay schedule.
• Pay PAYG via payment file to a nominated bank account: Select this option if you want the ABA file for that pay run to include the PAYG amount to be transmitted to the ATO at the time of the pay run. If you select this option, you will be required to enter the relevant ATO bank details and reference number.
• Pay Run Automation: This setting allows you to choose what components of a pay run you want automated — that is, run in the background automatically — and what components are to be processed manually. If the pay run is to be processed manually from start to end, then no setting needs to change as manual processing is the default setting. Instructions on how to set up an automated pay schedule can be found here.
• Pay run approval: Enabling this allows you to nominate specific users that will be required to Approve/Decline a pay run before it can be finalised. Specific details regarding pay run approvals can be found here.

To edit a pay schedule, simply click on the name of the pay schedule. This will expand the details of the pay schedule, where you can then make the appropriate changes.

From this screen you are also able to delete the pay schedule. To do so, hover your mouse over the pay schedule name, where a red bin icon will then appear in the top right-hand corner of the window:

Clicking on the bin will trigger a delete confirmation. Click Delete to confirm deletion of the pay schedule:

NB. If the bin icon is disabled (i.e. it displays in a grey colour) you will not be able to delete the pay schedule. This is because the pay schedule has been previously used to pay employees. We do not allow the deletion of the pay schedule so as to not affect ongoing reporting by pay schedule.

You can restore a pay schedule by going to Payroll settings > Restore deleted items, and selecting Pay schedule from the drop-down box. A list of all deleted pay schedules will appear and you can click the Restore option against the pay schedule that you are wanting to reinstate.

A new setting will appear when the pay run frequency Monthly has been chosen. This setting is Calculate monthly hours based on an annual average:

The purpose of this setting is to calculate an average number of hours per month for employees who have advanced standard work hours set up in their profile, as opposed to paying the specific hours per month based on the number of days in the month (thereby calculating/paying different hours each month). This setting is only applicable for employees who have advanced standard work hours configured.

Employees who have basic standard hours and a monthly pay schedule will be paid an average number of hours each month, regardless of whether the Calculate monthly hours based on an annual average option is selected. For example, if an employee is set to work 19 hours per week, the monthly calculation of hours will be 19 x 4.33333 and this amount will not vary each month.

If this setting is not selected, the calculation for monthly hours for employees who have advanced standard work hours configured will be dependent on the days the employee works and how many of those days are contained in the specific month. Therefore the employee's monthly hours could vary from pay period to pay period. Please note: this is only relevant for employees with advanced standard work hours and not basic standard work hours. Basic standard work hour employees will have their monthly work hours averaged regardless of whether this option is selected.

The first step is to create the new pay schedule in Payroll. If you have Employment Hero HR, this will automatically sync back to HR and be available to assign to your employees.

HR platform changes

If your organisation uses both the HR and Payroll platforms, certain changes must be made in each platform separately.

To update employee records in the HR platform:

1. Export your employee data.
2. Keep a copy of the original file before making any changes.
3. Make the required changes in the copied file.
4. Import the updated employee data.

Refer to the support article: How do I import employees via CSV via the HR platform? for detailed instructions.

The following items will need to be updated in the HR platform:

• Pay Details (salaried employees) — Review how each salaried employee's pay is configured (e.g. annual, monthly). If a change is needed, add a new salary record effective from the start date of the first pay run under the new frequency, once the last pay run under the old frequency has been finalised.
• Bank Details (employees with split payments) — If any employees have fixed-amount bank splits (rather than percentage-based), these may need to be adjusted to reflect the new pay frequency.

Refer to the support article: How do I import employees via CSV via the HR platform?

Payroll platform changes

Deductions

• Child Support Deductions / Garnishees — Contact Services Australia to update the pay cycle frequency. New letters will be issued, and deduction amounts and protected earnings amounts will need to be updated to match the new pay frequency.
• Salary Sacrifice to Super — Check with affected employees whether their ongoing deduction amount needs to change (for example, a $40 monthly contribution may become $20 per fortnight). If you are running an interim payroll to bridge the change in pay period, discuss with employees how salary sacrifice will be treated in that pay run.
• Ongoing Tax Adjustments — If employees have requested an additional tax withholding amount, contact them to confirm whether this should also be updated. Note: this does not apply to STSL calculations or withholding variations issued by the ATO.
• Deductions to third-party providers — Contact each relevant provider to confirm the change in pay frequency. New deduction amounts may be issued, and you will need to report these updated amounts to the providers. This includes:
  • Novated leases
  • Salary packaging arrangements
  • Workplace giving

Allowances

Review any fixed allowances paid each pay run (such as a car allowance) and convert them to the new frequency. For example, a car allowance of $120.00 per month would become $55.39 per fortnight.

Instructions for updating pay run inclusions

1. Export current pay run inclusions using the Monthly Payrun Inclusion Report.

2. Export a file template by going to Payroll Settings to help with importing employee deductions in bulk. 

3. Make the necessary changes to the file.
4. Import the updated employee changes.

Refer to the support articles: Data Extracts and Importing Employee Deductions in Bulk.

Updating employee details

Note: the following steps apply to changes made in the Payroll platform only, not changes made in HR.

1. Export the Employee Details Report.
2. Keep a copy of the original data before making any changes.
3. Make the required changes in the copied file.
4. Import the updated employee data.

Refer to the support article: Employee Import via Excel/CSV.

Additional considerations

• Bank Account Splits — If employees split their pay across more than one bank account using fixed amounts, discuss with them whether those amounts need to change once the pay frequency is updated.
• Overtime — If there is an interim period during the pay cycle change, consider how to treat any applicable overtime to ensure employees are not disadvantaged.
• Salaried employees — Check how your system handles salaried or autopay employees under the new frequency. For example, a full-time employee may move from 164.67 hours per month to 76 hours per fortnight.
• Rulesets — Review any monthly or salaried rulesets that need to be converted to the new frequency, or move employees to the correct ruleset. If a new ruleset is required, a copy of the existing ruleset can be created so changes are made to the copy rather than the original. Refer to the support article: Pay Condition Rules.
• Rosters — If your organisation uses rosters, review whether any roster configurations need to be updated to reflect the new pay frequency.
• Tasks — Review any pay run tasks that may need to be amended. Refer to the Tasks Report for a full list.
• Leave Allowance Templates (LATs) — Review any monthly LATs and either convert them to the new frequency or move employees to the appropriate LAT.
• Report Packs — Update any report packs to reflect the new pay frequency. Refer to the support article: Report Packs — Editing and/or Deleting.