Within your organisation there would be myriad different employee payment rates, depending on the pay conditions assigned to your employees. Automating the calculations of these rates will reduce the management time spent on making sure the correct application of penalty rate multipliers, whether you have applied the correct loading rate, and so on.
The Pay Categories feature allows you to create a new pay category and define the unit of accrual, super rate, rate loading and payment classification. You can also edit any pay categories you have created previously and delete any that are no longer required.
Any changes made to your pay categories will need syncing over to your HR platform. To read further details on how to undertake this, refer to the following article.
The following steps outline the steps required to add a new pay category.
- Click the Business Settings menu.
- Click the Payroll Settings submenu.
- Click the Pay Categories button.
- Click the Add button.
- Enter the pay category name and click the Save button.
- Complete the following fields:
- Super rate.
- Rate loading.
The payroll platform will add the rate loading amount on top of the base rate.
- Penalty loading.
The payroll platform will add the penalty loading amount on top of the base rate and the rate loading.
- External ID.
- Payment classification.
- Rate precision.
You can click the Add Linked Category button to link pay categories together. When linking a pay category to a base pay category, you only need to specify the base rate for the employee and it will automatically calculate the rate for the linked pay categories.
- Click the Save button.
The following steps outline how you can edit, restore, and/or delete a pay category.
Renaming and reusing a pay category for a different purpose than initially required may cause corruption of historical records. If you require a new pay category similar to an existing pay category, we recommend creating a brand new pay category for this purpose.
You should not delete a pay category used in a pay run, as this will affect your reporting; instead you should rename the category with the pre-fix DNU (do not use).
The EH payroll platform comes with pre-populated pay categories. The platform has marked these categories with a tag called system. They allow you to differentiate between the pay categories you have created, and the ones generated by the EH payroll platform. You cannot rename, delete, or link these categories to another pay category. The pre-populated pay categories are:
- Additional payments (Opening balance).
- Allowances - Other (Opening balance).
- Excluded (Type R) employment termination payment.
- Leave loading.
- Leave loading (Genuine redundancy).
- Lump sum D component of employment termination payment.
- Non - excluded (Type O) employment termination payment.
- Pre 1983 tax free component of employment termination (Type O).
- Pre 1983 tax free component of employment termination (Type R).
- Unused leave payment (Genuine redundancy).
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So you have now posted a shout out onto the Company Feed and you are now wondering what next can I do. There are two recommendations I would make on this front and they are:
- Pay platform: Pay Schedules:This feature allows you to create a new pay schedule, specify the pay frequency and set up the components that need automating and what components still require manual intervention.
- Payroll platform: Managing Leave Categories: The Leave Category feature allows you to create a new leave category, determine what type it will fall under, choose a payment setup, and what leave loading rates will apply.
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