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:
| 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 |
U | Superannuation - Salary Sacrifice | Superannuation 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 |
G | Other Payment - Gross | Used for other gross payment amounts. | 12 |
W | Other Payment - Withholding | Used for other withholding payment amounts. | 13 |