How do I set up employee payment defaults?
Summary
This article explains how to default the payment options for new employee records.
The settings can be tailored for individual employees.
More Information
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 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 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 " " Reports & Settings Maintenance Options System Administrator Module Settings" Payroll Module Settings".
- Scroll down the screen to the "Payment Defaults".
- Select each option in turn and click [Edit] to check or amend the data. If you make any changes click [OK] for each.
- "Payment method"
-
- 'CA' - Cash
- 'CH' - Cheque
- 'CR' - Credit Transfer
- 'BA' - Bank Account Transfer (this includes all Automated Pay systems e.g. Natwest Autopay)
- "Payment Frequency"
-
- 'M' - Monthly
- 'W' - Weekly
- 'F' - Fortnightly
- '4' - 4 Weekly
- "Payment Type"
-
- 'H' - Hourly
- 'S' - Salary
- "Standard Hours"
- Enter the standard number of hours worked if "Payment Type" is 'H' - Hourly.
Enter '1' as the "Standard Hours" worked if "Payment Type" is 'S' - Salary.
Payment rates
You may create up to 10 payment rates to be used in the payroll e.g. Standard Rate, Double Time etc.
Select each option in turn and click [Edit] to check or amend the data. If you make any changes click [OK] for each.
- Select "Payment 1 description"
- Enter a description e.g. 'Std Rate' (Max 15 characters).
- Select "Payment 1 rate"
- If Payment Type is Hourly - enter the hourly rate
 | £8.72 |
- If Payment Type is Salary - enter the Salary Rate based on the default Payment Frequency
| £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.
For the remaining 9 options follow these steps:
- Select "Payment 2"
- Enter a description e.g. 'Double Time' (Max 15 characters).
| This will appear on payslips and the payroll screen when you run a payroll period. |
- Select the rate type e.g. an hourly rate, a percentage of the Payment 1 rate, a Lump Sum or a Benefit.
- Depending on the above choice, enter the relevant amount or leave the value as 0 for no default.
- Select "Payment 2 pension flag"
- Specify if this rate is to be excluded from pensionable gross pay.
- Click [Done] and [Accept] to save the updated details.
See also
- How do I run a payroll period?
- How do I set my company HMRC details?
- How do I create an employee in the payroll?
- How do I record benefits in kind?
- How do I set up payroll adjustments?
- How do I set up payroll attachments?
