Create a new Pay Type for use in Payroll
05-Sep-2023 · Felix Fung
Why create a new Pay Type?
You are about to pay staff under a new payment category. You want to add this to Payroll.
How to create new Pay Type for use?
Please Recalculate the existing Payroll to apply the updates as the new pay type will not show up in the payroll generated previously.
Step 1. Create the new Pay Type
- Go to Payroll -> Pay Type
- Add New to Create the new Pay Type
Step 2. Enable the new Pay Type in Job Order Template
- Go to Payroll -> Job Order Template
- Locate the Job Order Template -> Click into the Pay Type
- Enable "Is Active"
- Review other settings and assign the proper value, e.g.
- Is Relevant Income for Hong Kong MPF calculation
- Is Taxable and the corresponding tax category
- Is Disregarded Days for excluding the days in ADW calculation
- Is Disregarded Wgaes for excluding the amount in ADW calculation
- Set the Payroll formula
- If your pay type "has unit rate", then you need to set both "unit rate formula" and "number of unit formula"
- If your pay type "has no unit rate", then you need to set the "unit rate formula".
- Put [PR] at "Unit Rate Formula" and Backstage will take the pay rate set in the staff Placement profile to Payroll
- For setting the formula, you can see the payroll variable on the right-hand side or you can take a look:
Payroll Variable for setting the formula
Step 3. Set the Pay Rate in staff Placement profile Optional
- Go to staff Placement profile -> Salary section
- Set the pay rate if needed
- Generate the new Payroll Batch / Recalculate existing payroll to confirm the new pay type is working