Employment Hero comes pre-loaded with a comprehensive range of pay, leave, and deduction categories to ensure optimal compliance and ease of use. For this reason, we strongly advise against modifying or deleting any system categories.
If you find it necessary to update a system category, please reach out to us via live chat in your Employment Hero platform for assistance. To add additional categories, please refer to the instructions below and use the links to learn how to manage each type of category.
This article explains how to add:
- Pay categories
- Leave categories
- Deduction categories
- Expense categories
- Employer liability categories
Pay Categories
In an organisation, there are numerous employee payment rates, which vary based on the assigned pay conditions for each employee. By automating these rate calculations, you can significantly reduce the time spent on managing rate multipliers, providing accurate loading rates, and more.
The Pay Categories feature enables you to create new pay categories, specifying the unit of accrual and payment classification. Moreover, you can easily edit any existing pay categories and remove those that are no longer needed.
Click here to learn how to create and manage pay categories
Leave Categories
The Leave Categories feature provides a system for your employees to request time off under specific predefined categories. These categories enable you to monitor the various types of leave your employees take and keep track of their accrued balances. This empowers your organisation to effectively manage and generate reports on employee leave activities.
With the Leave Category feature, you can easily create new leave categories and specify their types, payment setup, and applicable leave loading rates. It also allows you the flexibility to modify any category information in case of changes and remove any category that becomes obsolete or irrelevant.
Each leave category can have different accrual arrangements to accommodate your organisation's specific leave policies.
Helpful Hint
When setting up your leave categories, ensure that the payment setup is configured correctly for your organisation's requirements. This will help ensure accurate leave accrual and payment calculations.
If you wish to modify the leave settings for specific employees, you will need to do it individually. To achieve this, navigate to the employee file and access the Leave section. From there, you can make the necessary adjustments as per your requirements.
Click here to learn how to manage leave categories
Deduction Categories
Note: You will set up your employee deductions through pay run inclusions. You are just setting up the category at this stage.
A payroll deduction involves deducting funds from an employee's pay before they receive their paycheck. Some deductions are required by law, while others result from private agreements between employers and employees. The system includes basic deduction categories by default.
The Deduction Categories feature allows you to create new deduction categories and provide specific details, including the category and payment classification. It also enables you to edit existing information and delete records that are no longer needed.
Click here to learn how to set up deduction categories as part of pay run inclusions
Expense Categories
Expense categories in payroll refer to different types of expenses that employees incur during their work. These categories are used to classify and track various expenses, making it easier for businesses to manage their finances and accurately reimburse employees for eligible expenses.
Click here to learn how to set up expense categories as part of pay run inclusions
Employer Liability Categories
Employer liabilities in payroll refer to an employer's legal and financial obligations, including paying wages and complying with labour regulations.
Most liabilities are tracked through the Chart of Accounts, so only unique categories need to be set up in your payroll system.
Setting up liabilities correctly ensures compliance and efficient payroll management.
Click here to learn how to set up employer liability categories as part of pay run inclusions