Pay Class is a set of rates used for groups of employees who receive the same rates of pay. It can also be used as a method of grouping employees within awards and allows for quick, ‘across the board’ changes.
Pay Classes are assigned at the employee level, so you may have a mix of pay class employees and non-pay class employees.
Updates to a Pay Class, e.g. a change in rate, will automatically update employees to the pay class.
You can check which employees are attached to a Pay Class using the employee grid. Right-click in the grid and select Customise Grid Columns. From the Customization box, drag Pay Class Code and Pay Class Description into the headers.
When an Addition or Deduction is attached to a Pay Class and paid to an employee, you will see an * (asterisk) on the employee's pay advice.
You can Add, Edit and Delete Pay Classes. You can also search for codes and add notes to selected Pay Classes records. When editing a pay class you can't change the code.
Note: You can edit a Pay Class if there are no current transactions that use the Pay Class. If there are, delete the transaction first before editing.
Pay Classes can be set to Auto Increment e.g., employees are automatically moved to the next Pay Class when they have either worked a defined number of hours or a particular date is reached. For more information, see Pay Class Auto Increments
Before adding a Pay Class, you will need the following information:
Rates, including Auto Pay and yearly salary if applicable.
Additions and Deductions that apply to this pay class.
Add a Pay Class:
Go to Payroll, Maintenance, Rates, Pay Classes.
Enter a Code and Description.
Select a Cost Account. You can leave this blank and assign a Cost Account on the employee record.
Tick Active for Pay Classes that are in use.
In the Increment section, you can use Group and Next Pay Class to auto increment.
Select the Rates tab.
Enter the Yearly Salary. This field and the Auto Pay Amount are often left blank as the Pay Class is used for employees working a variety of hours or attached to different Pay Frequencies.
Enter the Auto Pay Amount. This specifies the standard pay amount for this pay class for 1 pay period.
Normal Rate is the hourly rate. This value will default to the remaining rate fields.
Time / Half Rate and Double Rate contain the base rate that will be multiplied by the overtime factor (e.g. 1.5 or 2). You can enter a different hourly rate or leave it the same as the Normal Rate.
Other Rate and Award Rate can be used to define a different rate from Normal. You can calculate Pay Components, Leave, Leave Loading and Percentage type additions and deductions using Other or Award rates. To do this, enter a different rate in the field. When entering transactions, you can select between Normal, Other or Award.
To attach a fixed leave rate, select the Leave Rates tab.
Click Add, then select the Rate Type.
Enter the Fixed Rate value to use when leave is processed for an employee attached to this Pay Class.
Click OK to add the Leave Rate.
Select the Additions / Deductions tab to link an addition or deduction to this pay class.
Click Add.
Select the addition or deduction.
Tick Use Default, to use default values in additions or deductions. Otherwise, untick this and enter the value. The field name is determined by the type of Addition or Deduction. For Unit types, the value is the amount paid per Unit and for Rate types, you define which hourly rate to use.
You can also define a Cost Account or leave the field blank.
Click OK to add the Addition or Deduction.
Then click OK to save the Pay Class.