types of pay item:

• Income—This applies to a payment if it increases the number of hours an employee works. For example, wages, overtime or salary.
• Allowance—An extra payment owed to an employee in addition to payment for hours worked. For example, commission, bonus, back pay, reimbursement of costs, meal allowance or shift allowance.
• Deduction—An amount withheld from an employee's pay, which is then forwarded to an authority or other organisation. For example, union fees, child support or staff loans.

On the Calculation Method tab,

you can choose one of three options for the Method field:

Amount

The Amount method is best for fixed dollar amounts.

You can be set it to calculate per pay or at regular intervals. You can choose to represent this amount in Hours, Days, Pieces or Units.

If you want to use an amount-based pay item for multiple employees and for different pay groups, leave the Amount and which represents fields blank.

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Rated

The Rated method is best for a pay item that's paid in units

using

. You can either use the employee's wage rate

. You can also apply

or a custom rate.

For example,

you could use the rated method for

to calculate overtime,

which

you could

set to use either the employee's standard rate or a custom rate.

select Use Employee's Rate, then use the Rate Multiplier field to apply a time-and-a-half or double time amount.

For the Units section, you have two options. The Entered option lets you set a default number of units as Hours, Days, Pieces or Units. The Derived option gets its units from other pay items, like wages and salary.

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Percent Of

The Percent Of method lets you select how much of a pay item's value will be included in a pay.

For example, you could use this method for a casual employee who should be paid 8% of gross earnings every pay period.

The selected items would be set to Income eligible for Holiday Pay.
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