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Adding a Pay Rate |
  
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Adding a Pay Rate |
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To add a new pay rate, from the main screen, click on the 'Pay Types' picture button and then the 'Add' button
or
click on the word 'Pay Types' and select 'Add Pay Rates' from the pull-down menu.
and 
The details of the new pay rate will be displayed, as seen below
There is only one tab of information and it's fields are outlined below
Active – is this pay rate being used ? Do you want to see it in the list of pay rates ? i.e. Yes / No
Type - there are three (3) pay types to select from eg. pay rate, Allowance, or Deduction. Click on the down arrow and select pay rate from the list.
Description - enter text which best describes the pay rate.
Paid by - Click on the down arrow for a list of payment methods eg. per Hour, per Day, per Kilometer, *per Unit etc. Select the payment method used for this pay rate. If the list does not contain the method you require then you can type over the contents of the field. (e.g. per sheep).
* A unit pay rate allows employees to be paid on a unit basis eg. Packed boxes, leaflets delivered etc. The total number of units should be entered during the payrun, and will print on the payslip. The employee total units are even listed in the Payroll Hours Summary Report.
NOTE: If units are used instead of hours, the accruals will not calculate if you have the accrual method (in the awards section) set to 'per hour pro rata', in the award you have the employee linked to.
Custom rate of SGL – Regardless of the rate of SGL set in an employee's details or award, a pay rate can have it's own rate of SGL calculated on it's dollar value. When this field is at 0.00% the preceding statement reads "Using Super as set in employee file instead of …". In this case the SGL rate for this payrate is taken from the employee's details. As soon as the field changes from 0.00% (e.g. 13%) the preceding statement reads "Using Special Super Rate".
Value - enter a value for this pay rate. It may be expressed as either a dollar value, or a percentage. In the case of the latter, the value is equal to that percentage of the hourly rate in the award the particular employee is linked to.
NOTE: If you do not type the percentage (%) sign after the amount (eg. 25%), it will default to a dollar figure (eg $25.00).
Pay Rate Type – This defines how the payrate is classed. E.g ordinary pay, overtime, termination pay etc. It will decide which column the value attributed to this payrate is placed on reports such as the 'Payroll Analysis'. E.g. if the pay rate type was 'Ordinary Pay' then it's value would end up in the 'Ord + Pub' column on the payroll analysis.
The Pay Rate Type can deem how the pay rate is taxed. E.g. 'Variable tax' set to 8% means that the value attributed to this pay rate will be strictly taxed at 8% instead of the applicable tax scale being applied.
The Pay Rate Type can also play a part in accrual balances. A user may decide to set up their own Annual Leave pay rate. If they do not have the Pay Rate Type set to 'Annual Leave' then the hours attributed to this payrate will not come off the employee's annual leave balance.
Accruals - Click on the appropriate accruals box for this pay rate eg. Long Service Leave, Superannuation, Annual Leave, Sick Leave, RDO's or TIL. A cross will confirm selected accruals. What these boxes mean is for e-PayDay® to look at the award the employee is linked to, for how much to pay or accrue. For example, if there is a tick next to 'Annual Leave', then when this pay rate is used in the pay envelope, e-PayDay® will look back to the employee's award to find out how much annual leave to accrue. If the award says zero (as in casual awards) then the annual leave balance wont be touched. The reverse is also true. The award might have 10 weeks leave to accrue over a year, but unless the employee is being paid with a pay rate which has annual leave ticked (in it's details), the annual leave balance wont move.
Contributes to $450 rule - a tick next to 'Contributes to $450 rule' means the pay rate constitues salary and wages, and a tick next to 'Superannuation' means the pay rate is also ordinary time earnings. A payment can be salary and wages but not ordinary time earnings (eg Time and a half) but the reverse is never true.
If not stated otherwise in an industrial award or workplace agreement, ATO legislation stipulates that if an employee earns less than $450 in a calender month, the employer is exempt from providing the SGL for the employee. These "earnings" mean salary and wages. If the condition is met, then the employer applies the SGL percentage to the employee's ordinary time earnings. A tick next to this box will mean that money from this pay rate is going towards the employee's salary and wages when determining of they have earnt over $450 in the calendar month yet.
NOTE: If they have earnt over $450, but there is no tick to 'Superannuation', then no SGL will amount from this pay rate.
Report To – The value of this field is used in producing a report on the usage of this pay type. See Tracking Pay Types
Tax - a pay rate will always DEFAULT to TAXABLE. But it can be made to be non-taxable. See Special Pay Types.
'Add Another' - if you wish to add more than one pay rate, click on this button to add another pay rate.
NOTE: If you do not proceed with adding a pay rate (Cancel after pressing the 'Add' button), the program will place a BLANK in the Pay Types List. You can edit this with new pay rate information at a later stage.
Click 'OK' to save your pay rate details. If you do not wish to save the pay rate details then click 'Cancel'.