Your organisation may have many different employee payment rates. Automating the relevant rate calculations is important to reduce the time spent on otherwise labour-intensive administration.
This article shows you how to use the Pay Categories feature. This 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 to be synced to your HR platform. To learn how to do this, refer to this article.
Getting started
- 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.
- If this is a fixed pay category, tick the Is Fixed checkbox. Otherwise, leave it unticked.
Note: Fixed pay categories cannot be changed to hourly/annually/daily/monthly after they have been created. If a pay category needs to be changed, you will need to create a new pay category.
- Click the Save button.
- Complete the following fields:
- Name
- Units
- Rate loading
Note: The Payroll platform will add the rate loading amount on top of the base rate.
- Penalty-loading
Note: The Payroll platform will add the penalty loading amount on top of the base rate and the rate loading.
- PAYE-exempt
- Accrues leave
- KiwiSaver exempt
- Parental leave
- ACC levy exempt
- Exclude from average weekly earnings
- Exclude from ordinary weekly pay
- Hide units on pay slip
- External ID
- Rate precision
Tip: 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. The platform will then automatically calculate the rate for the linked pay categories. Note that you cannot add linked pay categories to ‘Fixed’ pay categories.
- Click the Save button.
Edit data
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 you create a brand new pay category.
- 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 to be edited.
- Make the required changes and click the Save button.
Manage date
- 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.
Delete data
Note: 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.
Further information
The Employment Hero 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:
- Allowances - Other (Opening balances)
- Alternative Holiday Leave Taken
- Annual Holidays Taken
- Covid leave
- Domestic Violence Leave Taken
- Extra Pay (Discretionary Payment - excluding AWE)
- Extra Pay (Including AWE)
- Extra Pay (KiwiSaver Exempt)
- Pay as you go (8%)
- Public holiday not worked
- Public holiday worked
- Redundancy payment
- Retirement allowance
- Sick leave taken
- Termination Alternative Holidays Entitlement
- Termination Annual Holidays Entitlement
- Termination Holiday Pay (%)
- Termination Public Holidays Entitlement
Explore related content
- Add, automate, and manage pay schedules on the Payroll platform This feature allows you to create a new pay schedule, specify the pay frequency, and set up which components need to be automated and applied manually.
- Adjust leave within a pay run on the Payroll platform This feature allows you to change employees' accrued leave values, categories, and any required supporting notes.
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