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AccountRight Plus and Premier, Australia only

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Payroll categories and Single Touch Payroll

The ATO's new payroll reporting changes require each AccountRight payroll category be assigned an ATO Reporting Category.

Learn more about setting up Single Touch Payroll reporting and assigning ATO reporting categories.

 

All the bits and pieces that make up an employee’s standard pay are known as payroll categories. They include things like normal time, overtime, superannuation, salary sacrifice, PAYG withholding, and so on.

AccountRight comes with a set of payroll categories, and you can modify these to suit your business or create new ones.

You assign payroll categories to your employees from within the category itself or from the Card Information window > Payroll Details view of an employee’s card. You can also review the full list of payroll categories that have already been set up by going to the Payroll command centre > Payroll Categories:

Payroll category list window

Take a look at this quick overview:

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There are six types of payroll category. Click the links below to learn more about them, how to create new ones, and how to assign them to your employees:  

 
Payroll categoryDescription
Wages

All amounts paid for labour or services rendered on an hourly, salary or other basis, including allowances and bonuses. Other payments, like annual and personal leave are also paid using wage categories (leave balances are tracked using entitlement categories).

Superannuation

Superannuation benefits such as superannuation guarantee and salary sacrifice.

Leave and entitlements

Leave entitlements, like annual and personal leave, which employees accrue under the terms of their work agreement, are tracked using entitlement categories (but paid out using wage categories).

Deductions

Amounts withheld by you on behalf of employees, and usually paid to other organisations. For example, union fees.

Taxes

PAYG amounts withheld from the employee’s paycheque and paid to the ATO.

Expenses

Most businesses don’t need to use this payroll category type. But if you have benefits other than superannuation that you pay for your employees, you could set them up as expenses.

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Payroll categories and your business

Because each business is different, the payroll categories you need to set up for your business will vary. Our help pages show you how to set up payroll categories, but to learn about the rules and requirements for wages, leave and other payroll categories for your business, start with the Fair Work Ombudsman website or check with the ATO.

You'll also find advice from other AccountRight users and business professionals on the MYOB community forum.

Additional tasks

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titleTo edit a payroll category

To edit a payroll category

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If you edit a payroll category, any changes you make will apply to all employee cards linked to that category.

  1. Go to the Payroll command centre and click Payroll Categories. The Payroll Category List window appears.
  2. Click the tab corresponding to the type of payroll category you want to edit—Wages, Superannuation, Entitlements, Deductions or Expenses.

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    You can't edit the PAYG Withholding tax category, you can only view it.

  3. Click the zoom arrow next to the payroll category you want to edit. The information window for that category appears.
  4. Make the required changes to the payroll category.
  5. Click OK.
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titleTo delete a payroll category

To delete a payroll category

You can delete a payroll category if:

  • it has never been used on a pay
  • it is not part of an employee’s standard pay ,
  • it is not linked to another payroll category (such as a wage category linked to an entitlement category), or
  • it is not the Base Hourly or Base Salary payroll category (which can't be deleted).

To delete a payroll category:

  1. Go to the Payroll command centre and click Payroll Categories .
  2. Open the payroll category you want to delete.
  3. Go to the Edit menu and choose Delete Category .

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titleTo assign a payroll category to an employee

To assign a payroll category to an employee

  1. Go to the Payroll command centre and click Payroll Categories. The Payroll Category List window appears.
  2. Click the tab corresponding to the type of payroll category you want to assign—Wages, Superannuation, Entitlements, Deductions, Expenses or Taxes.

  3. Click the zoom arrow to open the payroll category. The information window for that category appears.
  4. Click Employee. A list of your employees appears.
  5. Select the employees to be assigned this payroll category.
  6. Click OK then click OK again.
  7. Click Close.

Here's a demo:

animation showing a payroll category being assigned to an employee

You can check the payroll categories assigned to an employee in their standard pay.

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Did you know you can assign payroll categories to employees during a pay run? Find out more...

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titleRelated topics
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Wages

Superannuation

Deductions

Leave and entitlements

Employer Expenses

Taxes

Add an employee

Enter employee payroll information

Processing your payroll

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Take the free online course for setting up payroll categoriesImage Modified