Add, Edit or Delete a Pay Item (NZ)

Overview

To add a Pay Item:

1. Go to Config > Payroll > Pay Items > click ‘Add New Pay Item’.

2. 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.

3. Enter the relevant details.

4. Click Save.

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	Pay Used for standard pay items (eg Daily, OTx1.5) Requires you set the Pay Basis as:  ‘Pay based on time worked’; or,  ‘Pay one unit’ (eg one-off bonus or commission payment) Fixed Allowance A set amount that is paid to an employee as an allowance (eg meal allowance, travel allowance) Pay Basis does not appear for this item type Variable Allowance An amount paid to an employee where the units vary per pay (eg kilometres for travel) Requires you to set the Unit name and indicate if it is a ‘Car allowance’. An optional Allowance Maximum can be set. Piecework Used where employees aren’t paid under a traditional pay arrangement (eg paid per fix/installation) Will only show as an option if piecework has been enabled in your portal Requires you to set the Unit name
Pay Basis	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. If the rate is the same as the base pay, enter 1.00 If the rate is higher than the base pay, enter the decimal (eg for OTx1.5, enter 1.50) If you’re using Rate Cards, use 1.00 as the multiplier 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
Data Mapping	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: 

1. Go to Config > Payroll > Pay Items.
2. Click on the name of the Pay Item
3. Edit the fields as required and click Save.

Delete a Pay Item

To delete a Pay Item:

1. Go to Config > Payroll > Pay Items.
2. Tick the checkbox to the left of the Pay Item’s name.
3. 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.