PayHero generates pays for employees using preset Pay Items. These are the basis of any earnings, deductions, reimbursements and payments that might apply to an employee's pay. You can view, create and edit these from Manage > Pay Items.
A number of standard pay items are already available in your account. Those with a padlock next to their name are permanent and cannot be edited or deleted. Other default pay items without a padlock can be edited or archived if they aren’t required.
Some of the permanent pay items are allocated to your employees automatically, based on settings in their profile.
To create custom pay items to suit your requirements, click the icon. Any Earnings pay items you create will then appear as an option to assign to Work types, and all pay items will be available to add your employees' Default Pay (for permanent, regularly used pay items) or to add directly to the pay run for one off pay items.
Pay items are grouped into five different types: Earnings, Reimbursements, Deductions, Superannuation, and Payments.
Earnings pay items represent balances earned by the employee in five sub-categories:
Regular Earnings - Standard earnings that use one of the employee's standard pay rates.
Other Earnings - Non-standard earnings, for example unit rates, multiplied rates (e.g. time and a half), earnings that need to be handled differently for salaried employees, or earnings that require balances be tracked on payslips.
Bonus - Bonus payment earnings.
Discretionary Payment - An ex-gratia payment that is not required under the employee's employment agreement.
Reimbursement pay items can be used to compensate employees for employment-related expenses without incurring tax.
Deduction pay items will trigger a reduction of the employee's take home pay. There are a number of permanent deduction pay items ready-made for common compulsory deductions e.g. PAYE, KiwiSaver, IRD Arrears, Child Support. These are pre-set with the correct IRD account details and codes.
The other default deduction is Social Club. This is an example of the type of deduction you could set up. Custom deductions can be:
Regular Deductions - A standard deduction that is withheld from the pay by the employer.
Third Party Deductions - A deduction that is paid into a third party bank account.
Donations - Deductions made to a registered charity. Payroll donations tax credits will be automatically calculated for Donation deductions included in employee pays.
The deduction can reduce at a fixed or variable rate per pay, or as a % of earnings or per hour worked. The deduction can be directed to a third party bank account and it’s possible to set a reducing balance (i.e. a deduction total of $500 to reduce at a certain rate until it reaches that total).
Superannuation pay items represent contributions to a superannuation fund. KiwiSaver Employer Contribution is a permanent item that will automatically apply to the default pay for KiwiSaver members.
If you wanted to set up custom superannuation deductions you'd use this Pay Item category.
Payments items allocate pay to certain payment channels.
Direct Credit is permanent and is used by PayHero to assign pay to employee bank accounts.
Cash can be used to designate certain amount of pay to a cash payment.
You can create custom payment items which can be allocated to a third party bank account and have a tracked balance.