Managing your pay categories via the payroll platform

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

Add a pay category
  1. Log into your Employment Hero Payroll platform.
  2. Click the  Business Settings menu.
  3. Click the Payroll Settings submenu.
  4. Click the  Pay Categories button.
  5. Click the Add button.
    Screenshot of where to click on add to add a new pay category
  6. Enter the pay category name.
  7. Tick the Is Fixed checkbox if this is a fixed pay category.

    Warning

    Fixed pay categories cannot be changed to hourly/annually/daily/monthly after it has been created. If that is required, you will need to create a new pay category.

  8. Click the Save button.
    new pay category
  9. 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.

    Note that you cannot add linked pay categories to ‘Fixed’ pay categories.

  10. Click the Save button.
    Screenshot of where to click on save to add a new pay category

Editing data

Edit 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.

  1. Log into your Employment Hero Payroll platform.
  2. Click the  Business Settings menu.
  3. Click the Payroll Settings submenu.
  4. Click the Pay Rate Template button.
  5. Click the pay category that needs editing.
    Screenshot of where to click pay category that needs editing
  6. Make the required changes and click the Save button.
    Screenshot of where to click save on pay category that needs editing

Data management

Restore a deleted pay category
  1. Log into your Employment Hero Payroll platform.
  2. Click the  Business Settings menu.
  3. Click the Payroll Settings submenu.
  4. Click  Restore Deleted Items.
  5. Select Pay category from the drop-down menu.
    Screenshot of where to click restore on pay category that needs restoring
  6. Select Restore for the correct pay category.
    Screenshot of where to click restore on pay category that needs restoring
  7. Confirm the restoration of the pay category.
    Screenshot of where to click confirm on pay category that needs restoring

Deleting data

Delete a pay category

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).

  1. Log into your Employment Hero Payroll platform.
  2. Click the  Business Settings menu.
  3. Click the Payroll Settings submenu.
  4. Click the Pay Rate Template button.
  5. Click the Delete button.
    Screenshot of where to click delete on pay category that needs deleting
  6. Click the Delete button.
    Screenshot of where to click delete on pay category that needs deleting

Further information

Default pay categories

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.

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