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 by:
- Automatically calculating linked rates through penalty rate multipliers
- Configuring the payment classification
- Configuring leave accrual
- Configuring exemptions such as PCB, EPF, SOCSO, EIS & HRDF
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' > 'Pay categories' page
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. To create a new Pay Category click on the '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 the 'Save' button:
Fields in this category include:
- Name: Name of the pay category
- Units - hourly, annually, fixed, monthly or daily;
- Payment classification - this is used for reporting an employee's income information and you can select from the following payment classifications:
- Accrues leave;
- Exclude from ordinary earnings: When selected, income related to that pay category is excluded from ordinary earnings calculation;
- Exemptions include:
- Hide Units on Pay Slip: When paying employees, there may be pay categories where you do not require the number of units and rate per unit to be displayed on the pay slip. Examples include paying a commission or bonus, or the primary pay category for salaried staff. Even though the units will still be displayed in the pay run, ticking this checkbox means they won't appear on the pay slip. For eg, if you have ticked the setting for the 'Salary' pay category, the pay run will still appear as follows:
The employee's pay slip, however, will appear as follows:
- External ID - e.g. can be used if importing timesheets. The external ID can be used to match the pay category to the timesheet. If an external id is used that has been used before you won't be able to save it if the 'unique external Id' setting is switched on. This setting is located on the Payroll settings > Advanced settings page. See here for more information;
- Penalty loading - this is penalty loading that applied on top of the base rate and the rate loading;
- Rate Precision - option to set rate at between 0 and 6 decimal places;
N.B. 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 6 decimal points, regardless of the pay category setting
* In the pay run, rates may be specified to up to 5 decimal points, regardless of the pay category setting
5. Once you have completed the Pay Category, press the 'Save' 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 Permanent - Ordinary hours but have linked categories of Permanent - Overtime x 100% and Permanent - Overtime x 50% in order to cater for any overtime worked.
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 need to enter a name for the the linked category, then press the 'Add' button.
Note: you have the opportunity to delete the linked pay category up until the point that it is used in a pay run. If you move your cursor towards the end you will see a figure like this By clicking on this figure 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.
- Press the 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, although some settings (such as loading) can in some cases be edited. This is intentional to ensure the system calculates the pay categories and associated components in a specific manner.
Deleting Pay Categories
To delete a pay category, hover your mouse over the pay category name where you will then see a red cross icon on the right hand side of the pay category.
Click on the "x" icon where a confirm popup dialog will then appear. If you click on "Delete" the pay category will be removed from the platform.
Note: If a pay category has been used in a pay run, you are NOT able to delete it. Additionally, no "SYSTEM" configured pay categories can be deleted.
Restoring a pay category
You are able to restore a pay category by going to Payroll settings > Restore deleted items, and selecting 'Pay category' from the drop down box. A list of all deleted pay categories will appear and you can click the 'Restore' option against the pay category that you are wanting to reinstate.
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