Overview
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, rate loading and payment classification. You can also edit any pay categories you have created previously and delete any that are no longer required.
Important
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.
Availability
| Payroll Plan: | Standard | Premium |
Getting started
The following steps outline the steps required to add a new pay category.
- Log into your Employment Hero Payroll platform.
- 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:
- Name.
- Units.
- Penalty loading.
Important
We will add the penalty loading amount on top of the base rate and the rate loading.
- 52 week average.
- PAYE Exempt.
- Except form National Insurance.
- Employee pensionable.
- Accrues leave.
- Hide units on pay slip.
- Employer pensionable.
- Net Payment.
- External ID.
- Rate precision.
- NMW/NLW calculation.
Helpful Hint
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.
Maintain
The following steps outline how you can edit, restore, and/or delete a pay category.
Warning
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.
- Log into your Employment Hero Payroll platform.
- Click the Business Settings menu.
- Click the Payroll Settings submenu.
- Click the Pay Rate Template button.
- Click the pay category that needs editing.
- Make the required changes and click the Save button.
Warning
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).
- Log into your Employment Hero Payroll platform.
- Click the Business Settings menu.
- Click the Payroll Settings submenu.
- Click the Pay Rate Template button.
- Click the Delete button.
- Click the Delete button.
- Log into your Employment Hero Payroll platform.
- Click the Business Settings menu.
- Click the Payroll Settings submenu.
- Click Restore Deleted Items.
- Select Pay category from the drop-down menu.
- Select Restore for the correct pay category.
- Confirm the restoration of the pay category.
Further information
The EH payroll platform comes with pre-populated pay categories. The platform has marked these categories with a tag called platform. 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:
- Flexible Drawdown Payment.
- Flexible Drawdown payment Non-taxable.
- Keeping in Touch Day.
- Pension death benefit - non taxable.
- Pension death benefit - taxable.
- Statutory adoption pay.
- Statutory maternity pay.
- Statutory parental bereavement pay.
- Statutory shared parental pay.
- Statutory sick pay.
- Termination payment.
Author recommended
So you have now managed your pay categories and you are now wondering, what next can I do. There are two recommendations I would make on this front and they are:
- How to add and manage Pay Schedules by Hero Academy Training 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 adjustments within a pay run This feature within the Pay Run module allows you to change employees' accrued leave values, with the ability to specify details such as the leave category, leave value, and any required supporting notes.
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