Payroll Control Files User Guide

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All standard pay types must be created within the Pay Codes tab. Once established these pay codes can be attached to individual employees’ records as standard pay lines. Set up codes for all pay aspects including standard pay, holiday leave, sick leave, allowances, deductions, child support etc. New codes can be created through this view as required.

Overview

1. Pay Code; This field must be a unique number between 1 and 9999, no alphas are allowed. _{‘0’ is reserved for Taxation and is imbedded into the program.} 2.

Description; Enter the description of the pay type, for example Standard Pay, Wages, Salary, Car Allowance, Rental Deduction, Union Fees etc.

 This description will appear on employee pay slips and other payroll standard reports. 3.

Type; Select the appropriate Type from the drop down list.

 Read further for an explanation.

 If a type is initially set up incorrectly and needs to be amended the system will scan and change all existing transactions to the new type.

4.

Default Pay Weight; For standard pay lines the default pay weight is 1;

 A Pay Code for Time and a Half would have the default pay weight as 1.5

 For Double Time = 2 default pay weight.

5. Location on Pay Summary; Care needs to be taken with this selection (Aust only);

 Read Further for an explanation

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Pay Type

PCSchool cannot tell you what Pay Type to use, if you need assistance you may have to speak to your accountant but the following information may help with your decision, ultimately the onus is on you to select the correct Type.

Type

 AA – Allowance After Tax

Allowance Received after Tax has been calculated; This Allowance should be added to the Gross Pay unless it is a claimable Allowance.

 AB – Allowance Before Tax

Allowance Received before Tax is calculated; Tax is then calculated on the Pay plus the Allowance, this would affect the Gross Pay.

 AT – Accrual Table Award tables for accruals read further for information on how to set these up.

 C – Carer’s Leave Current

Year Use the code for Carer’s Leave.

 CD – CDEP Payments Used for Government CDEP payments.

 CS – Child Support

Only used by Government request. Classed as a Deduction Before Tax. $ amount can be debited to a Suspense Account.

 DA – Deduction After Tax

Deduction made After Tax has been calculated; used for such things as payments for morning tea; Location on the pay summary can vary but it would not normally affect the Gross pay.

 DB – Deduction Before Tax Deduction made before Tax is calculated; used for

 FE – Fringe Benefit (Exempt) Fringe Benefit

 FN – Fringe Benefit (Non

Exempt) Fringe Benefit

 H – Holiday Pay Use for Holiday Pay.

 L – Long Service Leave Use for Long Service Leave.

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LA – Holiday loading after tax LB – Holiday loading before tax

Aus only.

To automatically calculate leave loading on Annual/Holiday leave, codes with a Type of;

 LB – Holiday Loading Before Tax

 LA – Holiday Loading After Tax must be created. These codes can be applied when awarding holiday leave to calculate leave loading before and after tax.

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 P – Gross Pay Standard Pay

 PT – Pay Table Used when creating Pay Tables.

 RA – Reducing Deduction After Tax

Amounts deducted from gross pay after tax has been calculated;

 School fees etc.

 Must enter a Balance Outstanding

 The reducing Balance Outstanding is shown on the employee’s payslip

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 RB – Reducing Deduction Before Tax

Payments to be deducted from the gross pay before tax has been calculated;

 Employee Salary Sacrifice for a Laptop etc.

 Balance Outstanding is shown on the payslip

 Once the debt has been paid the system will no longer deduct this payment.

 RD – Rostered Day Off NSW; used for Rostered day’s.

 S – Sick Pay Treated as a part of Gross Pay

 SD – Automatic Super Deduction

Used for Superannuation;

 Untick if Superannuation is to be calculated on the gross pay

 Tick if Super is to be calculated on the pay minus any Super Salary Sacrifice amounts

 SH – Sick Half Days Relevant only for particular State Awards where there is a stipulation for half days;

 SL – Special Leave

This covers all other leave apart from Sick and Carers’ Leave;

 Bereavement Leave etc

 Can be a component of Sick Leave Or set up as an accrued leave

 SU – Employee Super Not applicable

 T – Tax Tax does not affect the Gross pay.

 TM – Termination Pay Check with your accountant. Location on Pay Summary

Australia only – ex Aust can ignore this field or enter 1 for all codes, refer to the ATO or your accountant for clarification of a particular Type.

 0 – Does not appear

To be used when you do not want the amounts to affect the Gross Pay figure such as;

 Deductions after tax

 Tax

 1 – Gross pay

Used whenever the amount must affect the Gross Pay figure such as;

 Allowances after tax

 Holidays

 Standard Pay

 2 – Allowances Claimable

Used when an allowance can be claimed such as;

 Vehicle

 Living away from home

 3 – Union Fees Only to be used for Union Fees.

 4 – Lump Sum A Check with your accountant.

 5 – Lump Sum B Check with your accountant.

 6 _Giving– Workplace Deductible Check with your accountant.

 7 – Lump Sum D Check with your accountant.

 8 – Lump Sum E Check with your accountant.

 9 – Fringe Benefit Only to be used for Fringe Benefits.

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Criteria

There are several optional criteria check boxes that need to be ticked when setting up the codes, this criterion must be correct before processing any Pays.

 If a selection is inadvertently checked, e.g. superannuation calc on an item when the pay run is executed the pay code will attract superannuation calculation.

 Adjustments would then have to be made in a later pay run to correct this calculation error.

 Likewise, if a criteria should have been checked, e.g. sick leave and wasn’t before a pay run was executed adjustments to the employee’s accrued sick leave figure would have to be made.

 Check for Normal Pay If clicked it will tick the boxes as shown.

 Holidays accrue If checked Holidays will accrue on this Type of pay providing the accrual details are entered.

 Sick Leave accrues If checked Sick days will accrue on this Type of pay providing the accrual details are entered.

 RDO’s accrue If checked Rostered Day’s Off will accrue on this Type of pay providing the RDO details are entered.

 Used in Superannuation Calc

If checked Super will be calculated on the $ value of this Type of pay.

 Show Unit on payslip Check to print the Unit of pay on the Payslip.

 Show Rate on payslip Check to print the Rate of pay on the payslip.

 Used in Workcover Calc Victoria Only.

 Attracts a Holiday Loading Aus only; This must be checked when setting up any code with the type of H - Holiday Pay.

 Earning Levy Exempt

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Accrual Table

AT – Accrual Tables are award tables for accrual of holidays, sick (full and half days), carers’, special leave and long service leave entitlements. Once established, these tables can be laid through any number of employees’ records who have the same entitlements;

 There is an automatic alert and increment from one Accrual Table to another Accrual Table if required.

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1. Pay Code Create the Pay Code with the Type of; _ AT – Accrual Table

2. Hours/Day Enter the Hours in a working day.

3. Days/Week Enter the amount of Days in a working week.

4. Anniversary Optional; Select Annual only if an employee can advance to the next level for accruals.

5. Hours @ Level Optional; Enter the hours if there is to be a fixed amount at this level. 6. Next Level Optional; Select the Accrual Pay Code for the next Level.

7. Pay Type

Select the Pay Types from the drop down lists;

 Not Allocated means a Pay Code has not been created using the Type needed.

 Carers’ Leave can be set up as a component of Sick Leave and will reduce the Sick Leave when Carers’ Leave is used. Alternately it can accrue independently from Sick Leave.

8. Rate

Enter the Rate that the leave is calculated at;

 10 days sick per year = 10 divided by (5 days x 52 weeks) = .03846

 20 days leave per year = 20 divided by (5 days x 52 weeks) = .07692

 Carers’ Leave would not have a rate if it is part of the sick leave. Setting it up like this allows for tracking.

9. Max/Year

Enter in hours the maximum accumulation for this Type of leave;

 10 days x 6.5 hours = 65

 20 days x 6.5 hours = 130

10. Max C Over

If leave entitlements can be carried over into the following and subsequent years enter the number of;

 Days x hours/day = 65 (as per Max/Year)

 Some states have maximums on the number of days able to be accrued to the following year even if the accumulation is greater than this figure.

 Sick Half Days, Carers’ Leave and Special Leave may have no Max C. Over; therefore next year there will be no accumulation from previous years.

11. Alloc All

Check if the maximum leave entitlement is available from Day 1 of the year. Do not check if leave has to be accumulated before use.

 Not checking this field will alert you if the employee’s

entitlements are not sufficient to cover what is being entered into a timesheet during payroll preparation.

12. Max All

Maximum allowed over a long period of time.

 If there is no restriction on the maximum able to be accumulated set as 9999.

 If limited enter maximum hours allowed. 13. Rolling Acc

Cutoff in Years

If the sick accruals are to be removed after a period of years enter the amount of years.

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Created in version 2009.4.0.117 11/16 PT – Pay Tables involves setting up Bands/Grades/Levels according to an Award structure. Attaching a table with an anniversary date will automatically alert you when an employee is entitled to upgrade to the next level. Once established, these tables can be laid through any number of employees’ records who have the same entitlements. There is an alert and increment from one Pay Table to another Pay Table if required. Award modifications can be changed in the Pay Table and this will automatically flow through to all employees who have that Pay Table as a standard pay line.

1. Enter a unique numeric Pay Code. 2. Enter your description for this Pay Code.

3. Select the Type of PT – Pay Table to enter the Pay Table tab.

4.

Enter either the;

 Annual Salary, Hours Per Day, Days Per Week

 Entering this way will calculate the Rate Per Hour based on 365.25 days, allowing for the Leap Year.

 This is 52.1786 weeks or 26.0893 fortnights per Year. Or enter;

 Hours Per Day, Days Per Week, Rate Per Hour 5.

A Casual Rate per hour can be entered in a Pay Table;

 This rate will be paid if an employee is classed as a Casual, Part Time or Permanent Part Time in the Employee View Type of Employ.

 If this pay is to be debited to an alternative General Ledger account a separate Pay Table must be created.

6.

If the Pay Table is to advance to the next level select Annual;

 When adding this Table to an Employee’s standard pay line the Anniversary date can be recorded in a date format.

7.

If there is to be an advancement to the next level enter that Pay Code;

 The Pay Code can be entered before creation of the next level Pay Table.

 If there is no next level leave this field blank. 8.

Select the Standard Pay relevant to this Pay Table;

 P (standard/normal pay) this will use the Rate per Hour entered above.

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Bank Control

If electronic processing of pays is an option the following is essential in setting up the employees’ bank details. This step is not necessary if the method of payment is by Cash or Cheque only.

1.

Australia - Enter the BSB.

New Zealand – As NZ bank account numbers incorporate the BSB simply set up a default BSB, e.g. 111111.

2.

New Banks can be created in Utilities/maintenance Codes/Banks, the view will have to be refreshed before the entries can be seen;

Australia - select a Bank from the list, these details will appear on the Payslip printouts;

 A generic Bank could be used, e.g. Bank instead of ANZ, NBA etc. New Zealand - Select a generic Bank from the list, e.g. Bank.

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Created in version 2009.4.0.117 13/16

Super Providers

You must have a Creditor created before adding Super Providers; one Creditor can be used for all Super Providers.

Enter all superannuation funds where employees’ superannuation, both employer and employee contributed, are lodged. Enter Company detail for both voluntary and employer contributed superannuation providers in this view.

Only one record is required per super provider, regardless of the various types of super contributions as the values, formats and frequencies can be edited through the individual employee’s superannuation detail.

1. Enter a unique numeric code.

2. Enter the name of the superannuation company.

3. Select either % or $ as the default. This field can be edited against an employee’s record. 4. Enter the appropriate value either as a percent or dollar amount.

5.

Select the frequency for super calculation. The standard can either coincide with the pay run frequency, or can be run as a monthly superannuation calculation depending on individual choice;

 Casual employees whose salary may not exceed the monthly threshold be identified as monthly.

 At the last pay run within a month/period you must select to run the Monthly Super. 6. Enter the minimum Threshold for calculation of monthly superannuation figures. This field _{can be edited when entered against an employee’s record.} 7.

Select the Entity for this Super account.

8.

Check this field if multiple Entities are used within the Payroll but the superannuation

calculation is to be to the default Entity only and not dissected to multiples.

9. Select the Account and Sub Account (Expense account to offset the Liability Account in the System file) where superannuation expenses will be debited.

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Tax Scales

Aus – Tax rates must be accurate and taken from the ATO Tax Scales;

 Update files will be sent out at the beginning of each financial year.

 Check the Tax is correct before processing your first pay in the new financial year.

 Rates can be edited if necessary.

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Created in version 2009.4.0.117 15/16

HELP or SFSS

HELP and SFSS are updated as per the Tax Scales and are used for repayment of Student Loans;

 AUS – HELP

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Pay Slip Comment

The Payslip Comment tab allows you to enter a generic comment to appear on all payslips.

1. Enter your comment;

 Use Shift + Enter to move to a new line. 2. Click Save when finished.

Payroll Control Files User Guide

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