This article walks through steps to create or update pay categories on HeroPay.
Pay Categories are used to define the rates that employees are paid. Setting up your pay categories will help simplify the management of employee pay rates by:
● Automatically calculating linked rates through loading and penalty rate
● Configuring super rates
● Configuring leave accrual
The setting for Pay Categories can be accessed and updated by clicking on the 'Payroll Settings', then select 'Pay Categories':
When you create a new business, a few common pay categories have already been created however, you can delete these and create new ones that match your business needs.
To create a new Pay Category, follow below steps
1. Click on the green ADD button (top right hand side of the screen) A New Pay Category box will open.
Type the name of the New Pay Category in the pay Category Name box. Then click on the blue ADD button on the bottom right.
2. Fields in this category include:
- Units - Hourly, Annually, Fixed, or Daily
- Super Rate - as a percentage
- PAYG Tax Exempt
- Payroll Tax Exempt
- Accrues Leave - tick this box if leave should accrue for this pay type
- Rate Loading - this is loading that is applied on top of the base rate that the
pay category is linked to. For example, if you have a base rate of $10 and set a
rate loading of 50%, then the linked rate will be $15.
- Penalty Loading - this is penalty loading that applied on top of the base rate
and the rate loading.
- Payment Summary Classification - this is used for pay categories that need to
be reported separately on an employee's payment summary and Single Touch Payroll report. You can find more information about this here
- Rate Precision - option to set rate at between 0 and 5 decimal places.
3. Once you have completed the Pay Category, press the save blue button on the bottom left of the screen.
4. In addition to the base value pay category, you can create linked categories. For example, a pay category could have the base value of Part-time weekdays but have linked categories of Part-time Saturday and another one for Part-time Sunday.
When a pay category is linked to a base pay category, you only need to specify the base rate for the employee and the rate for the linked pay categories will be automatically calculated.
To create Linked Categories, follow below steps
1. Click on the "Add Link Category" button in the bottom right hand corner of the chosen Pay Category.
After clicking the Add Link Category button type in a name you want to call the linked category, for this example we are calling it Casual - Saturday. Then press the blue Add button. Please note, you could delete the Linked Pay Category before actually using it. If you move your cursor towards the end you will see a figure like this by clicking on this figure you are able to delete the new Linked Pay Category.
Once the Linked Pay Category is added you will need to complete the relevant fields (same as mentioned above)
4. Press the blue Save button in the bottom left hand corner