To add a Pay Item:
Go to Config > Payroll > Pay Items > click ‘Add New Pay Item’.
Select ‘New Zealand’ as the Region > Create New Pay Item. This popup window won’t appear if you only have one region enabled in your portal.
Enter the relevant details.
Refer to the table below for more information on the settings you will need to configure.
|Name||The name of the pay item as it will appear on employees’ pay advices and invoices.|
|Description||Optional description of what the pay item will be used for|
|Pay Item Type||
Whether the item is paid based on the time worked or paid as a single unit.
|Rate Calculation Method||
If Multiplier is selected, you'll need to enter a Rate multiplier which is used to determine how the base pay and charge rates for an employee are calculated.
By default, a new pay item's rate multiplier will be 1.
If Dynamic Rate is selected, you'll need to nominate the Dynamic Rate to apply and how to calculate the hours/days worked. This setting is for pay items where a dynamic rate is required (ie statutory days not worked).
If you're using a Dynamic Rate Calculation Method, the Pay Basis must be set to 'pay one unit'.
|Backpay Pay Item||
The pay item that is used if a pay impact is applied from the Impact Report - Rate Change and a backpay is created in Process Payroll.
A pay item that has been specifically configured to your requirements can be nominated here and will apply automatically when the backpay is generated.
By default, this will be set as --This Pay Item-- and will use the original pay item in the backpay.
|KiwiSaver Exempt||Indicates if the item (and any units recorded against the item) is included in the calculation of superannuation|
|PAYE Exempt||Indicates if the item (and any units recorded against the item) is included in the calculation of PAYE tax|
|ACC Exempt||Indicates if the item (and any units recorded against the item) is included in the calculation of ACC|
|Tax Applicable to Suppliers||The default Invoice Tax that will be applied to Suppliers for this pay item.|
|Leave Accrual Exempt||Indicates if leave entitlement should accrue against the item|
|Visibility||Indicates whether the pay item will be visible to employees if the value is zero|
|EMIS Settings||Identifiers where the pay item should be reported when data is submitted through Payday Filing: Not Applicable or Gross Earnings|
|Tax applicable on invoices||The Invoice Tax that will be applied when the pay item is linked to an invoice|
|Charge Currency||The currency that the pay item will be invoiced in when the pay item is used as a Charge Item and multi-currency has been enabled in a portal. Will default to the region set for the pay item|
|Invoice Item Type||A report setting that identifies where the item has originated. Can be set as Timesheet, Expense, Other or any custom Invoice Item Types that have been set up|
|Cost of Goods||Sets the actual cost of an item (eg medical checks) and the method to calculate the Cost of Goods (Cost per unit or Percentage of Net)|
|GL Export Details||The GL Income Account and GL Expense Account codes against which the item will be allocated when it is used in a pay|
Can be used to provide Inbound Aliases and Outbound Aliases for GL Integration purposes (eg .csv file export and import)
Use space breaks to separate multiple aliases from one another
Edit a Pay Item
To edit a Pay Item:
- Go to Config > Payroll > Pay Items.
- Click on the name of the Pay Item
- Edit the fields as required and click Save.
Delete a Pay Item
To delete a Pay Item:
- Go to Config > Payroll > Pay Items.
- Tick the checkbox to the left of the Pay Item’s name.
- Click ‘With selected pay items’ > Delete.
Pay Items cannot be deleted if they are the Default item or have been used in payroll. You will receive an error if you try to delete an item that has been used in a pay run.