This part of the Payees screen is where you enter each payee's pay rates and net pay disbursement.
Whether or not a particular rate is used in the pay calculation depends on which type of payments are enter on the pay calculation screen. The Hourly 1 rate is only used by payments that have a payment type of Hourly selected on the Set up, Payment screen. Similarly, the Hourly 2 rate is only used by payments with a type of Hourly 2, and the Annual rate is only used by payments with a type of Salary.
Note that when you make a change to any of the pay rate fields (date, hourly rates, or annual salary) the previous values are shown below the current values.
The award specifies which award the payee's pay rate will default to. The awards are defined in the System Set up, Awards screen.
NOTE: dates are validated according to the Windows international settings. If your PC has the country set to United States, the date should be entered in the format mm/dd/yy.
If you select Direct Credit, then you'll need to enter a bank account number and reference in the following fields. Automatic payment net pays are not included in the direct credit schedule or Electronic Funds Transfer file. See direct credits for more information. You must enter a bank account number if you select this pay method.
Note that if you select Cash, and have set the Net pay rounding feature on in the Set Up, Payroll screen, the net pay will be rounded up to the next higher unit you specified on the Set Up, Payroll screen.
You can change the payment method and reprint the electronic funds transfer schedule or coinage analysis to include or remove a payee.
When you select 'Holding Account', the net pay is not paid direct to the employee, but held in your accounts, for payment to the employee by other means. This might be used for overseas employees who have their net pay converted to a foreign currency. You must enter a holding account number if you select this pay method. When you print the costing report, the employee's net pay is included in the total for the cost code you specify in the holding account.
However, if you want to remove a cash pay rounding from any employee, you'll have to go back into the Calculation screen and make some other change in order to affect the rounding. But it is sufficient just to select an existing payment on the Calculation screen, click OK as if you had changed it.
Award
Classification
The Classification defines which pay rate within the award the payee is to receive. The Classification is defined in the System Set up, Awards screen. An award can have any number of classifications within it.
Pay Rates
If the payee is paid an individually negotiated rate, you can record their pay rate on this screen. The pay rates here are effective dated, which means that the current effective rate as at the pay date is used in the pay calculation. Make sure the effective date is earlier or equal to the pay date on which they are to be paid. However, if the pay item being processed has a start date the pay item start date is used to find the effective pay rate rather than the pay date. Normally a start date is only available in the pay calcualtion pay item entry for leave pay items, but if you enable 'Daily Calculation' (tick the 'Daily Pay Calculation' in the Payroll setup form, Payroll Details tab) then the start date is available in the pay item entry form for every type of pay item.
Pay Rate Effective Date
The pay rate change date is the date that the last pay rate change became effective.
Hourly Rate 1
The hourly rate is used by payment elements that have a payment type HOURLY, such as ordinary pay and overtime. If the employee is paid an Award rate, leave this rate blank.
Hourly Rate 2
The hourly rate is used by payments that have a payment type HOURLY2 on the Set up, Payments screen. There is one example, ORD2, already set up. You would usually only enter a rate here if the overtime rate was not a multiple (either 1.5 or 2 times) of hourly rate 1, or if the payee could be paid at different rates for performing different jobs.
Hourly Rate 3
Similar to hourly rate 2, this rate is used by payments that have a payment type HOURLY3 on the Set up, Payments screen. There is one example, ORD3, already set up. Again, you would only enter a rate here if the payee was to paid at another rate unique to the person, that could not be derived from hourly rate 1.
Annual Salary
This figure is only used by payments created with a payment type of SALARY on the Set up, Payments screen. It is divided by the number of pay periods in a year (located on the Set Up, Payroll screen for the current pay frequency) to produce an amount to pay this pay period.
Net Pay Method
You can select one method of paying the remaining net pay:
Direct Credit to Bank, Building Society or Credit Union Account
Automatic Payment, Cheque, Cash, Holding Account