Payroll - Type

Modified on Mon, 6 Nov, 2023 at 11:19 AM

There are 3 different types of payroll dependent on whether the rate of pay is based per period, per day or per hour. Choosing the base on which the rate of pay is based is normally done at the outset, when the payroll is created.


PERIOD

The rate of pay is taken as the rate per Period.  This payroll type is most often used for the payment of salaries where the employees received a rate per month (12 periods).  The hourly and the daily rates of pay are computed from the Period rate using the number of days and hours that have been setup in the Period Table.


DAILY

The rate of pay is entered as the rate per Day.  This payroll type is most often used by those in the farming industry where employees are paid a daily rate which could then be paid out on a weekly, fortnightly or monthly basis.  The hourly rate of pay is computed from the number of hours that has been setup in the Period Table.


HOURLY

The rate of pay is entered as the amount per hour.  This payroll type is most often used by employees working in industries where the employees are paid at an hourly rate which could then be paid out on a weekly, fortnightly or monthly basis.


CHANGING THE PAYROLL TYPE

It is very rare for a payroll type to be changed.  A good backup of your data should be taken before any changes are made.  To change the Payroll Type:


Step 1 - Payroll Maintenance

- Go to the 'Data', then 'Payroll Maintenance' menu options

- Select the payroll you would like to change

- Use the dropdown menu against 'Type' and select the new Payroll Type required

- Press 'Ok' to save the change

- Close the payroll and login again to see the change take effect.

For more information on Payroll Maintenance see this link.


Step 2 - Employee Master

- Go to the 'Edit', then 'Employee Master' menu options

- Select an employee 

- Select the 'Pay Details' tab 

- Use the dropdown menu to change the 'Payment Basis' to the Payroll Type

- Click 'Ok' to save changes.

For more information on how to change the Payment Basis for an employee see this link.

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