Master Data - Pay Type

What is Pay Type?

Pay Type differentiate nature of remuneration paid to staffs. 

What can be defined in Pay Type?

Pay Type Code: a short code to represent a Pay Type.

Pay Type Name: full name of the Pay Type

Grouping Code: in certain reports, pay type can be grouped together. How they are grouped depends on the "Grouping Code". If Grouping Code is blank, then the original Pay Type Code will be used. Pay Amount of the same Grouping Code will then be grouped together. 

Sequence Number: your own sequence how these pay types to be displayed. It is suggested to create the sequence in larger interval such as 100, 200, 300... then you will be able to insert new pay type in between later.

Has Unit Rate: define whether this pay type is calculated and presented in the form of "unit rate x number of unit". For example, a pay type "No Pay Leave" is a good candidate of "has unit rate" because it is calculated by "number of no pay leave taken x daily rate". On the other hand, "Commission" is not appropriate with this option because it is usually calculated in lump sum. When "Has Unit Rate" is turned on, you will have to define formula for both "unit rate" and "number of unit". If this is turned off, you will only have to define the formula for the pay amount.

Is Cash: define whether this pay type will directly impact the net amount received by the staff. Most pay types are cash, but some are not. For example, the MPF Contribution by Employer is something not affecting the amount received.

Is Gross Salary: define whether this pay type is part of the "Gross Salary". This option affects the following: 1) Gross Salary and Non-Gross Salary are separately grouped in payroll and in payslip. 2) Non-Gross Salary are calculated when any Gross Salary is changed. For example, MPF contribution is a non-gross salary because its amount depends on other gross salary.

Is Hidden: define whether this pay type is hidden in staff facing documents, e.g. payslip.

Remarks: add your own comments.

What's Next?

• Complete your list of Pay Type
• Start creating Job Order Template and define Pay Formula for each Pay Type
• Fill in Pay Rate for each staff
• Try some payroll to verify your setting