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Pay code types

Pay code types

Summary


Pay codes must be linked to pay code types so that Synergetic knows how to treat them when calculating employee pay.

For example, if you set up a pay code with a type of Normal Payment, then it will count towards the employee's total gross pay. Pay codes with a type of Deduction - Pre-Tax (non-superannuation) are then subtracted from the gross pay and any Allowance - Taxable/Allowance - Non-Taxable amounts are added.

For each pay code:

  • Australian organisations must select a pay code type, income stream type and a reporting category
  • New Zealand organisations must select a pay code type and reporting category.

Pay codes for Australian organisations


Tip: You can develop a naming standard to prefix pay codes with the codes defined in the table below. This will make it easier to work with the pay codes and identify them on reports.

The Sort Order defines the order in which the linked pay codes will be displayed on reports.

Code

Description

Details

Sort order

N

Normal Payment

Main portion of an employee's gross pay and generally the main pay type that is used for calculating tax and superannuation.

Always set this to the full amount of an employee's pay, even if the employee wants to salary sacrifice.

Note: Synergetic has an inbuilt pay code of NLOAD for Leave Loading. Leave Loading cannot be changed to another code.

1

R

Deduction - Pre-Tax (non-superannuation)

Reduces an employee's taxable income.

Tax will be calculated on the Normal Payment less the Deduction - Pre-Tax (non-superannuation) amount, but superannuation will still be calculated on the full amount of Normal Payment. For example:

  • Normal Payment = 1000.00
  • Deduction - Pre-Tax (non-superannuation) = -200.00
  • Tax is calculated on 800.00, superannuation is calculated on 1000.00.

2

L

Allowance - Taxable

Before-tax allowance and therefore is included as part of the tax calculation.

Taxable allowances will typically appear on the employee's PAYG Payment Summary in the allowances section, not summarised into gross pay.

3

T

Withholding Adjustment

Indicates that an employee wants to pay a tax amount different from what is automatically calculated.

Synergetic always calculates tax based on gross pay, tax scale, earning level and pay periods to arrive at a figure. The tax adjustment is then added to the resulting figure.

4

H

Withholding Adjustment - HELP

Forces Synergetic to take out more or less HELP tax.

5

A

Allowance - Non-Taxable

Allowance that is added to the employee's nett pay. For example, a reimbursement.

This figure has no effect on the tax calculation or gross income base for an employee and typically will not appear on a PAYG Payment Summary.

6

D

Deduction - After-Tax (non-superannuation)

Other amount deducted from an employee's nett pay.

This figure has no effect on the tax calculation or gross income base for an employee.

7

S

Superannuation - Employee Voluntary After Tax

Superannuation that employees contribute taken out of their nett pay.

Superannuation can be entered as a percentage or a fixed amount. If a percentage is specified then a formula is used to automatically calculate the amount. See Calculating superannuation.

8

E

Superannuation - Employer Contributed

Superannuation that the employer contributes to an employee.

This figure has no effect on the employee's nett pay or tax. Superannuation can be entered as a percentage or a fixed amount. If a percentage is specified then a formula is used to automatically calculate the amount. See Calculating superannuation.

9

USuperannuation - Salary SacrificeSuperannuation the employer contributes on behalf of the employee as part of a salary sacrifice arrangement.10

Z

Other Payment - Termination

Used for paying an employee termination pay when they leave.

Synergetic does not calculate the amounts or tax for this pay type, therefore it is up to you to manually calculate the figures.

Synergetic sets the termination flag and date on the employee record when the pay is updated.

11

GOther Payment - GrossUsed for other gross payment amounts.12
WOther Payment - Withholding

Used for other withholding payment amounts.

13

Pay code configurations for Australian organisations



 Australian pay code configurations
 Normal payment field configurations
Pay codePay code descriptionIncome stream typeReporting categories
NNormal payment

Salary and Wages

ATO codeSynergetic description

CD

Allowance - Car (Cents per KM)

LD

Allowance - Laundry

OD

Allowance - Other

QN

Allowance - Qualification

MD

Allowance - Meal

KN

Allowance - Task

TD

Allowance - Tool

AD

Allowance - Transport

RD

Allowance - Travel and Accommodation


Individual - Gross


Individual - Gross Bonuses and Commissions