Pay Item Calculation Methods

Note, in the following descriptions, the payee hourly rate is the payee's award hourly rate unless an overriding hourly rate is entered in the Payee, Pay Conditions screen. The pay item factor is the pay item's factor field value.

If the calculation method is prefixed with a % symbol, the percentage rate is entered in the pay item edit form, Factor field, but if a number of units is entered for the pay item in the pay calculation screen, the pay calculation units over-rides the pay item factor. The pay calculation units can be entered directly in the pay calculation screen, or in the payee, standard pay screen, or a scheduled transaction.

The calculation method is one of:

• Cash, the value you enter in the pay item factor will be shown on the Calculation screen as the default amount of cash.
• Hourly, the cash amount is calculated by multiplying the units by the payee's hourly rate and the pay item factor.
• Salary, the cash amount is the payee's annual salary divided by the number of pay periods per year as defined on the Set Up screen.
• Daily, the cash amount is calculated by multiplying the payee's hours per day by the units and then by the payee's hourly rate and the pay item factor.
• Hourly Plus, the cash amount is calculated by multiplying the units by the payee's hourly rate plus the pay item factor. If the pay item's properties include a property 'Factor', the property value is multiplied by the result of the 'Hourly Plus' calculation to give the amount ot pay.
• Rate, the number of units entered on the Calculation screen is multiplied by the pay item factor to give the cash to pay.
• Gross Hourly Rate, the rate of all standard pay items for the employee that have the pay item property 'GrossHourlyRate' are accumulated and then multiplied by the number of units entered in the Calculation screen to give the pay amount.
• Total Hrs, the total ordinary and overtime hours are added together and then multiplied by the pay item factor.
• %Gross, the total gross pay is multiplied by the pay item factor and then divided by 100. i.e. pay item factor is used as a percentage.
• %Gross Rounded, the whole dollar amount of total gross pay is multiplied by the pay item factor and then divided by 100. i.e. pay item factor is used as a percentage.
• %Taxable, the total taxable pay is multiplied by the pay item factor as a percentage.
• %Taxable Rounded, the whole dollar amount of total taxable pay is multiplied by the pay item factor as a percentage.
• %Net, the remaining net pay is multiplied by the pay item factor as a percentage.
• %Ord Hrs and %Hrs, both calculate the cash by multiplying the payee's hourly rate by the units, where the units are calculated as the total number of ordinary hours multiplied by the pay item factor as a percentage. For %OrdHrs and %Hrs, the units cannot be overridden in the pay calculation screen.
• Ord Hrs calculates the cash by multiplying the payee's hourly rate by the total ordinary pay hours.
• Ord Hrs Rate calculates the cash by multiplying the total ordinary pay hours by the pay item factor.
• Hol Accrue, the units is calculated by dividing the annual or sick leave entitlements by the number of pay period per year. The units are then added to either the Annual or Sick balance depending on whether you have '+' against Annual or Sick Leave.
• Hol Pay, the cash is calculated using a formula dependant on the leave basis set in the Payee Leave Edit form.
• Tax Period, the number of units entered against this element will be used to spread a tax calculation over that number of pay periods. i.e. the taxable gross is divided by the number of periods, then the tax is calculated, and finally the tax is multiplied by the number of periods to give the tax to deduct.
• C/fwd Round calculates the cash as the amount needed to round the current net pay to the payroll rounding amount applicable to the net pay method.
• %Superable, the total of pay items that have the 'Superable' property is multiplied by the pay item factor as a percentage.
• %Superable Rounded, the whole dollar amount of the total of pay items that have the 'Superable' property is multiplied by the pay item factor as a percentage.

Some calculation methods are specific to countries:

Australia

• RDO, the cash amount is the RDO cash balance as shown in the Payee, Holiday Pay screen, unless it is zero in which cash it is the payee hourly rate multiplied by the units.
• PAYG, the cash amount is the PAYG tax due for the total of pay items with a tax category of 'Income'.
• HECS, the cash amount is the HECS and SFSS due for the total of pay items with a tax category of 'Taxable'.
• Lump Sum A Tax, the cash amount is the tax due for the total of pay items with a tax category of Lump Sum A'.
• Lump Sum B Tax, the cash amount is the tax due for the total of pay items with a tax category of Lump Sum B'.
• Lump Sum C Tax, the cash amount is the tax due for the total of pay items with a tax category of Lump Sum C'.
• %Superable and %Superable Rounded, the cash amount is calculated from the 'SGRate' entered in the tax factors form. That percentage can be over-riden by a factor entered for in the pay item setup screen, or the pay item units in the pay calculation screen.
• SGC, the cash amount is calculated by multiplying the total of 'Superable' pay items in the curent month by the 'SGRate' entered in the tax factors form. That percentage can be over-riden by a factor entered for in the pay item setup screen, or the pay item units in the pay calculation screen. The result is subtracted by the total of SGC pay items already processed in the month.

New Zealand

• PAYE, the cash amount is the PAYE tax due for the total of pay items with a tax category of 'EarnerPremEarnings' plus the total of pay items with a Tax Category of 'NonEarnerPremEarnings'. The PAYE total will include Extra Emolument tax on pay items with a Tax Category of 'ExtraEmolument' and ACC earner premium levy on pay items with a Tax Category of 'EarnerPremEarnings'.
• Loan Dedn, the cash amount is the Student Loan Deduction due for the total of pay items with a tax category of 'Taxable'.
• Child Support, the child support entered in the Payee, Tax Conditions form, reduced to a maximum of 60% of the after tax pay, if there is insufficient the child support amount ot more than 60% of the after tax pay.
• KiwiSaver, the cash amount is the KiwiSaver employee deduction due for the total of pay items with a tax category of 'EarnerPremEarnings' plus the total of pay items with a Tax Category of 'NonEarnerPremEarnings'. The percentage rate is retrieved from the current effective 'KiwiSaverBaseRate' tax factor. That percentage can be over-riden by a factor entered for in the pay item setup screen, or the pay item units in the pay calculation screen.
• KiwiSaver Employer, the cash amount is the KiwiSaver employer contribution due for the total of pay items with a tax category of 'EarnerPremEarnings' plus the total of pay items with a Tax Category of 'NonEarnerPremEarnings'. The percentage rate is retrieved from the current effective 'KiwiSaverEmployerRate' tax factor. That percentage can be over-riden by a factor entered for in the pay item setup screen, or the pay item units in the pay calculation screen.
• Withholding Tax, the amount of withholding tax, calculated using the tax rate entered in the payee, tax conditions screen on pay items that have a Tax Category of 'WithholdingPayment'
• %Hol YTD, the Earnings total accumulated from the leave type for all 'Annual' leave type's leave years is multiplied by the pay item factor as a percentage. The percentage is over-ridden by the units entered in the pay calculation screen for the pay item. The result is subtracted by the total of holiday pay paid for all 'Annual' leave type's leave years

Fiji

• PAYE, the cash amount is the PAYE tax due for the total of pay items with a tax category of 'Income'.

Papua New Guinea

• PAYE, the cash amount is the PAYE tax due for the total of pay items with a tax category of 'Income'.
• %Superable and %Superable Rounded, the cash amount is calculated from the 'NPFCoRate' entered in the tax factors form. That percentage can be over-riden by a factor entered for in the pay item setup screen, or the pay item units in the pay calculation screen.
• %Emp Superable and %Emp Superable Rounded, the cash amount is calculated from the 'NPFEmpRate' entered in the tax factors form. That percentage can be over-riden by a NPF Rate entered in the payee, tax conditions screen, and that in turn can be over-ridden by the factor entered for in the pay item setup screen, or the pay item units in the pay calculation screen.
• %Levy Superable and %Levy Superable Rounded, the cash amount is calculated from the 'NPFLevyRate' entered in the tax factors form. That percentage can be over-riden by a factor entered for in the pay item setup screen, or the pay item units in the pay calculation screen.

United Kingdom

• PAYE, the cash amount is the PAYE tax due for the total of pay items with a tax category of 'GrossPay'.
• NIee, NIer, the cash amount is the NI employee (NIee) or NI employer (NIer) contribution calculated on the total of pay items that have a 'NICategory' value of 'NILiable'.
• StudentLoan calculates the student loan deduction based on the total of pay items that have a 'NICategory' value of 'NILiable'.
• SSP calculates the amount of Statutory Sick Pay payable for the current period.
• SMP calculates the amount of Statutory Maternity Pay payable for the current period.
• SAP calculates the amount of Statutory Adoption Pay payable for the current period.
• SPP calculates the amount of Statutory Paternity Pay payable for the current period.
• SPPA calculates the amount of Statutory Paternity Adoption Pay payable for the current period.
• DEO, NP AEO, P AEO calculates the amount due for a priority attachment of earnings order or deduction from earnings order
• CC AEO, CT AEO, CP AEO, CNP AEO calculates a council tax attachment of earnings order
• AE AOS, SE AO, SC AO calculates Scottish arrestment order deductions
• SCM AO calculates Scottish arrestment order deductions