Customising Pay Items
You can modify the way in which existing pay items are processed and create new pay items. Select the Pay Item Edit Form to make changes. Note that when you select the pay item type, most of the properties for that type of payment will be set automatically.
The important fields in the Pay Item Edit Form are:
- Pay Item Type sets default values for a number of fields so you do not have to remember in detail all the settings for a type of pay item. Pre-defined pay item types are 'Taxable Payment', 'Leave taken'. You can add extra pay item types using the Pay Item Templates screen.
- Calculation Method dictates how the pay item's cash and units will be calculated. The Pay Item Edit Form lists the available calculation methods and their effect.
- Factor is utilised by certain calculation methods in the calculation. For 'Hourly" calculations the factor is multiplied by the hourly rate and pay calculation units, and is typically 1.0 for ordinary pay, 1.5 for overtime at time and a half. For a number of percentage calculations, the factor is the percentage rate, and for 'Rate' calculations, the factor is the dollar rate per unit.
- Benefit indicates if the pay item is a benefit provided by the company, and not paid in cash to the employee. Examples of benefits are company superannuation contributions, or fringe benefits.
- Miscellaneous Properties provides additional settings to control the details of how pay items are processed. Common properties include 'TaxCategory' which specifies how the tax on the pay item is to be calculated and how it is reported to the tax authority, 'LeaveMinus' if the pay item reduces a leave balance maintained for the employee. For a full list of available properties, select the Properties list, from the View, Set up menu.