Pay Categories are used to define the rates that employees are paid. Setting up your pay categories will help simplify the management of employee pay rates.
Create a Pay Category
You can create a Pay Category by following these steps:
- The setting for Pay Categories can be accessed and updated by clicking on the 'Payroll Settings' and then selecting 'Pay Categories':
When you create a new business, a number of common pay categories have already been created; however, you are able to delete these and create new ones that match your business needs. To create a new pay category click on the green ADD button as shown below.
- A New Pay Category box will open. Type the name of the New Pay Category in the Pay Category Name box. Then click on the blue ADD button on the bottom right. See Image below.
Fields in this category include:
- Units - Hourly, Annually, Fixed, or Daily
- PAYE Tax Exempt
- Accrues Leave
- Exempt from National Insurance
- External Id - If you want to reference a pay category from another system you can set that as the external Id in this system and that can be used to link it back.
- Rate Precision - option to set rate at between 0 and 5 decimal places.
In regards to rate precision, please note the following:
* Additional earnings lines (configured at the bottom of the employees' pay rates screen) can be specified to up to 5dp, regardless of the pay category setting.
* In the pay run, rates may be specified to up to 5dp, regardless of the pay category setting.
- Once you have completed the Pay Category, press the save blue button on the bottom left of the screen.
Manage Pay Categories
In addition to the base value pay category, you are able to create linked categories.
For example a pay category could have the base value of Part-time weekdays but have linked categories of Part-time Saturday and another one for Part-time Sunday.
When a pay category is linked to a base pay category, you only need to specify the base rate for the employee and the rate for the linked pay categories will be automatically calculated.
You can create Linked Categories, by following the the steps below:
- Click on the "Add Linked Category" button in the bottom right hand corner of the chosen pay category.
- You will see this screen (see image below) after clicking the Add Linked Category button. Type in a name you want to call the linked category, for this example we are calling it cherries sat. Then press the blue Add button. Please note, you have the opportunity to delete the Linked Pay Category before actually using it. If you move your cursor towards the end you will see a figure like this by clicking on this red symbol you are able to delete the new Linked Pay Category.
- Once the Linked Pay Category is added you will need to complete the relevant fields as you did for the pay category.
- Press the blue Save button in the bottom left hand corner.
System default pay categories
When you create a new business, there are a number of pay categories that are pre-loaded into the system for your convenience. Among these, there are 'System default' categories that are marked with a 'System' tag, as shown below:
These system maintained pay categories cannot be deleted or replaced, and the settings cannot be edited. This is intentional to ensure the system calculates the pay categories and associated components in a specific manner.
If you have any feedback or questions please contact us via firstname.lastname@example.org