Pay Categories

Pay Categories

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 loading and penalty rate multipliers
• Configuring super rates
• Configuring leave accrual

Please note that by default a number of standard pay categories have already been created. However, you can create new pay categories if you need.

To create a new Pay Category;

1. Go to Business > Payroll Settings > Pay Run Settings > Pay Categories

2.Click the +Add button on the top right corner of the pay category page.

3. Enter a name for the Pay Category and click Save.

4. Then you can enter below details

• Units - hourly, annually, fixed, daily and monthly
• Super rate - as a percentage
• PAYG tax exempt - You can click this checkbox if you want this pay category to be exempted from PAYG
• External Id: (Optional ) 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. 
• Accrues leave - You can click this checkbox if you do not want to accrue leave for this pay category
• Payroll tax exempt - Select accordingly
• 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:  
• Rate loading - this is loading that is applied on top of the base rate that the pay category is linked to. For example, if you have a base rate of $10 and set a rate loading of 50%, then the linked rate will be $15. ( You can add this if applicable)
• Penalty loading - this is penalty loading that is applied on top of the base rate and the rate loading.  ( You can add this if applicable)  
• Payment classification - this is used for pay categories that need to be reported separately on an employee's income statement.

5. Click Save