Maintain Pay Code

New Pay Codes can be created by an administrator or payroll manager for your company. Some of the standard pay codes cannot be updated, as these are used by FlexiTime for tax calculations, leave and employee pay deductions.

Select the Setup tab, and then select Pay Codes.

Click New Pay Code to create a pay code.

Select the Tax Type required.

The Add Pay Code page will be displayed, with the appropriate fields for the selected Tax Type. The example below shows Gross Earnings tax type.

Code	Enter a unique code
Description	Enter a Description of the pay code
Tax Type	The Tax Type defines how FlexiTime treats this pay code. Valid values are: Gross Earnings Taxable Allowances Pre Tax Deductions Taxes Non-Taxable Allowances Post Tax Deductions Payments Superannuation Contributions Payroll Donations Depending on the Tax Type selected the fields shown on the Pay Code screen will vary. The above view shows the fields for a Gross Earnings tax type. Bank Account details are not shown in this view.
Units	Select the unit of measure for this pay code. Select Hours if this is an hourly rate, or select Units if the pay code is to be used for piecemeal work. If Units is selected, enter the description of the unit of measure to which the rate applies, e.g. Hours, Kilometres. This will appear on the Time Entry screen as a prompt to enter the number of units to be paid.
Xero Account Code	Xero is an online accounting system. If you are a Xero user you can obtain a Xero network key from the Xero website specifically for FlexiTime. Adding the Xero network key to Company Settings will automatically send draft payroll Accounts Payable invoices and time billing Accounts Receivable invoices to Xero. For payroll, each pay code can be applied to a separate Xero account in your Chart of Accounts by specifying the Xero Account Code for this pay code.
Use Employee Account	If the Employee has a Xero account entered on their employee setup, tick this box to use the employee's Xero account.
Bank details	Enter the Bank details used for Post Tax Deductions. This is the bank account that the deductions will be paid into. The bank details will appear on the Bulk Bank Transactions file extract. Bank Details are only shown for tax types that allow payments to be made to external bank accounts, e.g. Payments, Pre-Tax Deductions, Post-Tax Deductions, Superannuation Contributions and Payroll Donations.
Active	Untick to deactivate this pay code. This will exclude the pay code from selection lists in pay and on work category and timesheets.
Pay Code Rate is based on Employee’s Pay Rate	Specify if the Pay Code Rate is based on one of the Employee’s Pay Rate, or if it is to be based on the Job Pay Rate.
None Normal Second Pay Rate Third Pay Rate Use Job Pay Rate	Different pay rates can be defined for an employee on the Maintain Employee tab. If Use Job Pay Rate is ticked, the employee's pay will be calculated using the Pay Rate on the Job.
Rate Multiplier	If the pay code is based on an employee’s pay rate, enter the rate multiplier, e.g. 1.5 for paying overtime at time-and-a-half. The default value is 1. For superannuation contributions the rate multiplier can be set at the percentage of gross salary and wages e.g. 0.01 for 1%.
Use Gross Salary and Wages as Rate	Used in conjunction with the Rate Multiplier to calculate the rate for this pay code as a percentage of the total Gross Pay for an employee.
Default Rate	A specific amount is used for this pay code, e.g. Social Club deduction.
Common to all Employees	Will add this pay code to all active employees’ default pay codes and will be added to new employees’ default pay codes. Note – if this is un-checked for a pay code it will not automatically remove the pay code from all employees’ default pay codes.
Derived from Timesheet	If checked the pay code may be set on Work items and/or Categories under Setup > Work, and any Timesheet hours entered against that Work will be automatically added to the employee’s pay against this pay code.
Substitutes Salary Hours	If checked, Timesheet entries against Work linked to this Pay Code will reduce a salaried employee's Salary hours in the pay and substitute those hours with hours allocated to this Pay Code instead.
KiwiSaver Compliant	Determines whether an exemption applies for Employer Superannuation Contribution Tax (ESCT).
Exclude from KiwiSaver Earnings	If checked the gross earnings or taxable allowance amount will not be included in the total earnings contributing towards the KiwiSaver contribution. If this is a Pre-Tax Deduction you should always tick this setting. This means that the deduction will be included in the gross earnings total when calculating KiwiSaver. IRD will expect this on your IR 348 return.
Exclude from Holiday Earnings	If checked the gross earnings or taxable allowance amount will not be included in the calculation of the average pay rate for gross earnings in the last 12 months. It will also be excluded in the holiday pay calculation. This affects the pay rate at which annual leave is paid.
Exclude from Ordinary Earnings	If checked the gross earnings or taxable allowance amount will not be included in the calculation of the ordinary pay rate for gross earnings in the last 4 weeks. This affects the pay rate at which annual leave is paid.
Exclude from GST	If checked the gross earnings or taxable allowance amount will not be included in the calculation of GST for a buyer generated invoice.
Payslip shows Quantity and Rate	If ticked the employee's payslip will show the quantity and rate for this pay code. It may be appropriate to uncheck this option for pay codes such as Salary or some deduction codes.

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