Paycodes Tab STP Phase 1

Fields that require further explanation

Paycode Number

The 3-character unique numeric code to be used for this paycode.

Group

The group that you allocate this paycode against will determine the order in which this paycode will be displayed on pay envelopes, pay summaries and various reports and screens.

Groups are maintained on the 'Paycode Groups' tab in this program.

Description

A 30-character description for this paycode.

Abbreviation

A shortened description that is used on various reports and screens where there is not enough room for the full description.

Tax Equation Flag

This field is used to determine how this paycode is treated during a pay run. 

Use the drop-down list to select from:

• B - Before Tax – Subject to PAYG tax.
  An example of a paycode that would use this would be 'Ordinary Pay'.  

• b - Before Tax – Not taxed automatically.
  An example of a paycode that would use this would be 'Early Retire/Redundancy'.

• T - Tax – Auto Calculated Tax.

This is only used against one paycode (700). Paycode 700 cannot be changed.

• t - Tax – Manual Tax.
  An example of a paycode that would use this would be 'Additional Tax'.

• A - After-Tax Deduction.
  An example of a paycode that would use this would be 'School Fee Deduction'.

• N - Net Pay.

This is only used against one paycode (999). Paycode 999 cannot be changed.

Multiplier

Enter a positive multiplier for paycodes used for entering Income. This would usually be 1.

Enter a negative multiplier for paycodes used for Tax, Deductions and Net Pay. This would usually be -1.

Multipliers of greater than one (negative or positive) can be used here, e.g. for 'Double Time' paycode enter 2.

In add mode, the default value will be as follows:

• Where 'Tax Equation Flag' is 'B' or 'b' (the field above) the default in this field is '1'.

• Otherwise, the default is '-1'.

Where you have a fixed dollar amount to be paid or deducted to multiple employees (they must all have exactly the same dollar amount) you can use the multiplier to achieve this.

An example might be a staff club deduction where a group of employees receive a fortnightly deduction of $8. To achieve this enter a multiplier of -8 and set the paycode up in the permanent pays for each employee who is to contribute. On the 'Permanent Pay' tab on the employee record when you add this paycode and enter '1' in the 'Units' field.

By using this methodology, if the contribution was to increase to $9, you would only have to change the multiplier here and every employee who contributes would automatically get the increase during the next pay run.

Tax at Marginal Rate

If this checkbox is ticked, the tax on this payment will be calculated at the employee's marginal rate averaged over the tax year.

An example where this could be used is for 'Unused Leave on Termination post 17/08/1993' (annual and long service) paycodes.

The system uses the formula as detailed in the ATO document NAT 3351 to calculate the tax for these paycodes:

Marginal Rate Calculation

1. Using the relevant PAYG withholding tax table, work out the amount to withhold from the payee's normal gross earnings for a regular pay period.

Therefore, using a paycode that has been set up for marginal rate taxing in an employee's first pay run will not work.
The second to be aware of is that the system will exclude any payment that has been made in the previous pay run that has been set up for marginal rate taxing.

2. Divide the amount of the payment by the number of normal pay periods in 12 months (12 monthly payments, 26 fortnightly payments or 52 weekly payments).

3. Disregard any cents.

4. Add the amount at step 3 to the normal gross earnings for a single pay period.

5. Use the same PAYG withholding tax tables used at step 1 to work out the amount to withhold from the amount at step 4.

6. Subtract the amount at step 1 from the amount at step 5.

7. Multiply the amount obtained at step 6 by the number of normal pay periods in 12 months (12 monthly payments, fortnightly payments or 52 weekly payments).'

In add and edit modes, this field is only editable where the Tax Equation Flag (above) = 'B' (uppercase B).

Rate Code

The possible rate codes are:

There are two methods that the system can use to determine the amount that the employee will be paid for a paycode:

1. Flat dollar value.
   You manually enter the dollar value to be paid.  (either in permanent pays or during the pay run).
   For this type of paycode you need to select:
   '0 - Rate Amount is manually entered'.

2. Based on hours/days worked.
   You enter the hours/days worked into the timesheet and the system determines the rate of pay and then calculates the amount to be paid.
   For this type of paycode you need to select one of the following options:
   '-  Get Rate Code from Employee (Blank Code)'.
   The employee's rate of pay is determined as follows:

   1. The 'Rate Code' is taken from the employee record.
      (This is maintained using program Payroll HRM > Payroll > Employee Information > Employees on the 'Payroll Details' tab).

   2. The 'Position Code' on the timesheet record. (This usually defaults from the employee record.)

   3. It goes to the position setup (as maintained using program Payroll HRM > Payroll > Setup Information >  on the 'Positions' tab) and gets the rate of pay from the column number matching the rate code above on the position code above.
      

      '1 - Description from 'Rate Codes' tab (e.g. Ord)'
      The employee's rate of pay is determined as follows:
      1	The 'Rate Code' will be '1'.
      2	The 'Position Code' on the timesheet record. (This usually defaults from the employee record.)
      3	It goes to the position setup (as maintained using program Payroll HRM > Payroll > Setup Information > Payroll Setup on the 'Positions' tab) and gets the rate of pay from column 1 on the position code above.

      '2 - Description from 'Rate Codes' tab (e.g. Casual)'
      The employee's rate of pay is determined as follows:
      1	The 'Rate Code' will be '2'.
      2	The 'Position Code' on the timesheet record. (This usually defaults from the employee record.)
      3	It goes to the position setup (as maintained using program Payroll HRM > Payroll > Setup Information > Payroll Setup on the 'Positions' tab) and gets the rate of pay from column 2 on the position code above.

      '3 - Description from 'Rate Codes' tab (e.g. Unused)'
      The employee's rate of pay is determined as follows:
      1	The 'Rate Code' will be '3'.
      2	The 'Position Code' on the timesheet record. (This usually defaults from the employee record.)
      3	It goes to the position setup (as maintained using program Payroll HRM > Payroll > Setup Information > Payroll Setup on the 'Positions' tab) and gets the rate of pay from column 3 on the position code above.

General Ledger Account

The system allows for two options in determining the General Ledger account to use when this paycode is used during a pay run:

1. Using an account mask.
   This is done by using a series of question marks (??-????-??-??).
   Full Mask.
   If the entire GL account is to be determined during a pay run for this paycode from the employee record just enter '??-????-??-??'.

For any paycode that has a blank GL account, it then defaults back to the 'GL Account' code field entered against the employee in program Payroll HRM > Payroll > Employee Information > Employees on the 'Payroll Details' tab.
Partial Mask.

If the GL account that is used during a pay run is to be determined based on the combination of the account code that is set up in this field and on the employee record.

2. Enter a GL Account code
   Explanation: The GL account entered here will override any GL account that is set up on the employee record during a pay run when this paycode is used.

Timesheet Entry Allowed

This checkbox determines whether the timesheet entry program will allow manual activity for this paycode (e.g. Transaction creation/deletion/modification).

As an example, paycodes 700 (Tax) and 999 (Net Pay) are not able to be used for a manual entry during a pay run, therefore this checkbox should be unticked.

For any other paycode that you do not want to be able to be used within a manual timesheet, untick this checkbox.

If the 'Tax Equation Flag' is either 'T' (uppercase T) or 'N' (uppercase N) for this paycode then this field will be unchecked by default and is not able to be changed.

Fields that require further explanation

Print on Pay Envelopes

The default for this checkbox is ticked. 

Untick this for any paycode that you do not want to display on employees' pay envelopes.

This checkbox should be ticked for most paycodes.

Included on Superannuation Gross

This checkbox is used to indicate if this paycode is to be used to calculate the gross figure for superannuation calculations.

The default for this checkbox is unticked.

Attracts Annual Leave Loading

This checkbox is used to indicate that the payment on this paycode will be used in the calculation of leave loading.

Please note that this flag is only used by calculation rule 'LL_FLAG_NO_TRG'.

For details Awards, Calculation Rules and Methods refer to program Payroll HRM > Payroll > Setup Information > Award Calculations.

Request History Details

This checkbox is used to indicate if this paycode will force the entry of a 'history' record during a manual timesheet entry.

An example of this would be 'Sick Leave' where date information is required to be captured.

Banking Deduction

This checkbox is used to indicate if this paycode will cause the deduction to be treated as a banking deduction. 

Net Pay will be reduced by the specified amount and paid into the specified bank account on the employee's record that is set up through program Payroll HRM > Payroll > Employee Information > Employees on the 'Permanent Pays' tab.

Include Hours/Days in Review Trigger

This checkbox is used to indicate if this paycode will be used in the calculation of review triggers. If it is ticked then the hours/days paid through this paycode will be used in the review trigger calculation.

An example would be where an employee's award specified that a teacher was eligible for a review after working a certain amount of hours/days.

The system will track the hours/days worked on paycodes with this flag since the last review.

Any employee who has reached the review trigger point will be highlighted when program Payroll HRM > Payroll > Pay Run Processing > Pay Run Reset is run.

Review trigger points are set up on the employee record in the 'Hours/Days required for Review' field through program Payroll HRM > Payroll > Employee Information > Employees on the 'Payroll Details' tab.

Apply Exception Checking

Tick this checkbox if you want timesheet entries against this paycode to be checked against the 'Pay Run Exception limits' that are defined in the 'Payrolls' tab in this program.

As an example, if you were running a fortnightly payroll you may have 'Hours / Days per Paycode' set to 76 and apply exception checking to the 'Ordinary Pay' paycode.

There are effectively three possible exception checking options that occur during a pay run (when program Payroll HRM > Payroll > Pay Run Preparation > Edit Listing is run) as a result of this flag being cross-referenced to the 'Pay Run Exception Limits' settings on the 'Payrolls' tab in this program.

1. Compare the total of all paycodes (that have this checkbox ticked) against the 'Total Hours/Days – All Paycodes' field value.

2. Compare the total of this paycode (with this checkbox ticked) against the 'Total Hours/Days – per Paycodes' field value.

3. Compare the total of this paycode (with this checkbox ticked) against the 'Payment Amount per Paycodes' field value.

Accrue Leave on Hours/Days Paid

This checkbox is used to indicate if the hours/days paid on this paycode will be used in leave accrual calculations.

Please note that this flag is only used by the 'LAHOUR' calculation method. 

For details of Awards, Calculation Rules and Methods refer to the on-line help for program on Payroll HRM > Payroll > Setup Information > Award Calculations.

Very Important!

Do not tick this checkbox for paycodes that are set up for flat dollar value payments.

This is a critical setup parameter for the system to calculate leave accruals. Do not change this unless you have read and fully understand the leave calculation methods deployed on your system.

Limit Accrual Codes

This checkbox is active only when the ‘Accrue Leave on Hours/Days Paid’ option is selected directly above.

Tick this checkbox to specify the types of leave accruals that this Paycode should include or exclude when ‘Calculate Pays’ is run in TASS.web Payroll HRM > Payroll > Pay Run Preparation > Calculate Pays or Payroll HRM > Payroll > Pay Run Preparation > Timesheets > 'Calc Pay' option within a timesheet.

This field is not editable when this Paycode is being used in a current Pay Run.

When ticked, a list with all the Leave Accrual Codes will appear.

Select the Accrual Codes you want to calculate when the Paycode is used. The unselected Accrual Codes will be excluded from calculations.

This is a multi-select field. Holding down the 'Shift' key while clicking on your options enables a range selection and holding down the 'Ctrl' key allows individual selection of additional fields.

Fields that require further explanation

Payment Summary Description

Only available when Single Touch Payroll is not enabled.

This field is only used where this paycode (payment or deduction) is to be shown separately on PAYG Payment Summaries.

An example of this would be certain types of allowances such as travel.

In this case, you would enter the actual text that is to print on the Payment Summary into this field.

If you want to combine two paycodes into one PSD, ensure the same description is used.

Allowance/Deduction Type

Only available when Single Touch Payroll is not enabled.

This field is only used where this paycode (payment or deduction) is to be shown separately on PAYG Payment Summaries.

An example of this would be certain types of allowances such as travel.

In this case, you would enter the actual text that is to print on the Payment Summary into this field.

If you want to combine two paycodes into one PSD, ensure the same description is used.

Other Allowance Type Description

Only available when Single Touch Payroll is enabled.

This field is required for payment paycodes where the 'Allowance Type' is 'Other'.

Lump Sum Payment

This field is only applicable to payment paycodes that are to appear as 'Lump Sum Payments' on employees PAYG Payment summaries.

This field is only applicable to payment paycodes where the 'Tax Equation Flag' is 'B Before Tax – Subject to PAYG tax' or 'b Before Tax – Not taxed automatically'.

Select from the drop-down list to indicate if this will appear on the employee's PAYG Payment summary as Lump Sum Payment A, B, D or E.

Choose the 'Redundancy' option where the payment is made in the scenario where the employee's termination is as a result of a Redundancy.

Choose the 'Termination (not redundancy)' option where the payment is made in the scenario where the employee's termination is not as a result of a Redundancy.

ETP Paycode

If you tick this checkbox the system will include any payments made using this paycode on a separate ETP Payments summary.

ETP Component

Select the appropriate 'ETP component' for this paycode from the drop-down list:

• Tax-Free Component                                      ('1')

• Taxable Component                                        ('2')

• ETP Tax on Code R and Death Payments      ('4')

• ETP Tax on Code O Payments                        ('5')

ETP Type Code

Select the appropriate 'ETP Type Code' for this paycode from the drop-down list:

• Life Benefit – Component Code R                  ('R')

• Life Benefit – Component Code O                  ('O')

• Death Benefit paid to Trustee                         ('T')

• Death Benefit paid to a Dependent                ('D')

• Death Benefit paid to a Non-Dependent       ('N')

This field is not accessible if 'ETP Component' = either of the 'ETP Tax' options directly above.