Select the Pay History tab under Payroll and then click New Pay.
The Add Pay window will be displayed.
Enter Pay Date information
Enter the pay date information:
Pay Date defines the date on which the pay is accounted for. When you create a pay, the pay date will default to the current date.
Start Date and Period define the period to be paid. The End Date is automatically updated based on the specified Start Date and selected Period. Timesheets entered for these dates will be included.
If an employee is paid variably you can select Variably from the Period dropdown box. This will enable the entry of a variable end date. Note that Variably is only to be used in very special circumstances.
Employees who are paid variably have the tax calculated based on their average weekly earnings. Each variable pay is divided by the average weekly earnings to determine how many weeks pay the pay is for. The tax is then calculated based on this number of weeks using weekly tax rates. If the employee is paid for a period less than a week then any other pays in the week are used to determine the gross earnings and tax already included in a weekly period, these totals are subtracted from the total for the week including the current pay to determine the tax for the current pay.
The Start Date will default to the day after the End Date of the last pay that was processed. The pay Period and End Date will also default based on the settings of the last pay that was processed.
The Tax Period is the last day of the Pay Date’s month. This is derived by FlexiTime and cannot be altered.
Add Employees to Pay by default is checked on and will automatically add all employees who have the selected pay period as their pay frequency to the pay. If you are running a special pay for only one or a few employees you can uncheck this option and then add the employees to the pay manually once the pay has been created.
Include Zero Pays by default this is checked on and will add the employee to the pay even if the calculated Gross Earnings from time sheet hours and default pay lines is zero. In cases where you have a large number of employees but only some of which have hours to be paid in this pay period you can uncheck this box to exclude those employees with no earnings. Alternatively the employees can be added to the pay with zero earnings and then removed manually once the pay has been created.
Click Create Pay. The Add Pay screen will be displayed.
All employees whose pay frequency is specified the same as the pay period selected will automatically be added to the pay, unless Add Employees to Pay was unticked.
You can modify which employees are to be included in this pay by doing the following:
- Select an employee from the dropdown list and click Add
- Remove employees from the pay by clicking Remove.
View Pay Details for an Employee
Select an employee and click edit to view the pay details.
The employee’s leave details are shown at the top of the screen. See the Employee Leave section for more details on leave calculations.
Edit Pay Codes
Pay codes can be edited or removed from the employee's pay and new pay codes can be added. To add a pay code, select the pay code from the drop-down list and click Add. A new line will be added to the pay for this pay code. Select the line with the new pay code and click edit.
For Gross Earnings pay codes, the Rate will default to the Employee’s Normal Rate, although this can be overridden.
If you adjust pay code details, you must click Calculate Pay to re-calculate tax and leave details.
If an employee is leaving your employment and this is the last pay you're processing for them, you should process a Final Pay to ensure they receive their full legal entitlement. Please see this article for more information on how to process a Final Pay.
Completing the Pay
When you are satisfied with the employee’s pay details, click Close. FlexiTime will prompt you to recalculate the pay, if necessary.
When you're happy with the entire pay details, you can Finalise this pay. Finalising a pay will cause payslips to be sent to employees with email addresses. If you've connected FlexiTime with an cloud finance system like Xero or MYOB the pay details will be sent through.
If you use FlexiTime's tax agency service your bank file will be automatically downloaded when you finalise the pay. If not, you can down load the appropriate bank file from Payroll > Reports > Bank Files to upload to your bank.
When a new pay is created you may get a message indicating that there were Pay Warnings created for the pay. You can view the warnings by clicking on the Warnings tab.
Warnings can be viewed to ensure that no common mistakes have been made with the set up of an employee or if there is anything unusual about the pay that may need to be fixed up before proceeding e.g. An employee being paid for leave when they do not have any leave available.