How do I set up employee payment defaults?

Summary

This article explains how to create standard payment information for use when creating a new employee.

More Information

Payment Defaults are set up in the Payroll Parameters. These need to be set up with your Company's requirements in mind. Default settings include:

• Payment Method e.g. BACS, Cash, Cheque etc.
• Payment Frequency e.g. Weekly, Monthly etc.
• Payment Type i.e. Hourly or Salaried.
• Standard Hours.
• Pay Rates e.g. Standard Pay Rate, Overtime Rates such as Time & ½, Double Time etc.

Default settings are picked up when new employee records are created. These can then be edited to suit the individual employee e.g. if the majority of your staff are paid weekly, by the hour and work 42 hours, you may wish to set these as payroll defaults.

Default settings will only appear on new employee records. If you have already created employee records, any changes to the default settings will not affect the existing records. You will need to edit each individual record manually.

Go to " Payroll Payroll Parameters/Maintenance Company Parameters Payment Defaults".

Your screen will resemble the screen displayed below:

     Payment Method : __ (CA/CH/CR/BA)

  Payment Frequency : W  (M/W/F/4)       Payment Type : S (H/S)
                                            Std Hours :  42.50

        Description     Pay Rate   /  % of First  /   Lump Sum
  1        Std Rate :      100.00
  2      Time & Hlf :                    150.00
  3     Time * 3Qtr :                    175.00
  4       Dble Time :                    200.00
  5       TEST RATE :       50.00
  6                 :                                     0.00
  7                 :                                     0.00
  8                 :                                     0.00
  9                 :                                     0.00
 10                 :                                     0.00

"Payment Method"

Enter the appropriate default settings for your Company:

• 'CA' - Cash
• 'CH' - Cheque
• 'CR' - Credit Transfer
• 'BA' - Bank Account Transfer (this includes all Automated Pay systems e.g. Natwest Autopay)

"Payment Frequency"

Enter the appropriate default settings for your Company:

• 'M' - Monthly
• 'W' - Weekly
• 'F' - Fortnightly
• '4' - 4 Weekly

"Payment Type"

Enter the appropriate default settings for your Company:

• 'H '- Hourly
• 'S' - Salary

"Standard Hours"

Enter the standard number of hours worked if "Payment Type" is 'H' - Hourly.

Tip: Enter '1' as the "Standard Hours" worked if "Payment Type" is 'S' - Salary.

"Pay Rates"

Alongside "Standard Rate", enter the default rate:

• If Payment Type is Hourly - enter the hourly rate e.g. £6.00
• If Payment Type is Salary - enter the Salary Rate based on the Payment :Frequency e.g £200 per week, £800 per month. Generally you would leave this blank since salaried employees are likely to be paid different amounts and there will be no standard figure.

"Pay Rates"

You have the option to create 9 "Pay Rates" alongside the Standard Pay Rate. These can be used to set up Overtime Rates e.g Time 1/2, Double Time.

• Enter a description for the "Pay Rate" (this will appear on payslips and the payroll screen when you run a payroll period).
• Enter a default value for the "Pay Rate" under the relevant "Pay Rate" type i.e. an hourly rate, a percentage of the Standard Pay Rate or Lump Sum.
• If you do not wish to enter a default value e.g. the value varies for all employees, you need to allocate a type of "Pay Rate" to the description. To do this move the cursor so it is under the type e.g. % of First, and enter '9'. Move off the field and the Zeros will now be under the % of First column. Move back on to the field and enter a '0' to erase the '9'. This has allocated the chosen type of "Pay Rate" to the description.
• If "Pay Rates" are added or amended after employee records have been created, the description and type of rate e.g. Lump Sum, will be amended on the existing records. However, actual amounts e.g. £6.00 per hour will not appear. You will need to amend each employee's record to enter the value for the new "Pay Rates". Any employee records created after the changes will pick up all "Pay Rates", types and default values.

See Also

• How do I Run a Payroll Period?
• Setting the Government Gateway User ID
• How do I Set my Company Inland Revenue Details?
• How do I Create a Department?
• How do I Add a New Employee to the Payroll?
• How do I Configure the Order my Employees Appear?
• How do I Create a Department?
• How do I Set Up Payroll Adjustments?
• How do I Set up Payroll Attachments?

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Keywords AND Misspellings

Payment, payroll, Parameters