Payroll processing performs several important functions. It calculates:
a) the gross earnings amount to be paid to each employee
b) the tax (PAYE) to be deducted and paid to IRD
c) any other pay deductions, e.g. KiwiSaver, Student Loan repayments
d) the net amount to be paid to the employee
e) the employee’s Leave entitlement
Pay Code Overview
FlexiTime makes up an employee pay using pay codes. Pay codes are grouped into various types and describe the rules for adding or deducting amounts from the pay.
An employee’s pay can be made up of a number of different pay codes defined in the following places –
- Default Pay codes can be added to the employee record using Setup > Edit the Employee > Default Pay and add the pay code for example to define post-tax deductions, payroll giving donations or payment methods.
- Pay codes can be added to Work Categories to define the default pay codes to be used when timesheet entries are added for that Work item and Category.
- Pay codes can be manually added to an employee’s pay by the Payroll Manager/Administrator.