Weekly, hourly, daily and contractor pay

Pay calendars, worked hours and withholding tax.

Not everyone is paid a monthly salary. Three settings cover the other patterns: the pay calendar decides when someone is paid, the pay type decides how their pay is worked out, and the payroll policy holds the withholding tax rate for contractors.

Pay calendars. Under Payroll, Pay calendars, create a calendar for each frequency you use, such as monthly, weekly or bi-weekly, and assign employees to it. Each calendar has its own open period and its own runs. Monthly salary structures are scaled for weekly and bi-weekly calendars, and the PAYE period follows the calendar. A pay calendar is not a salary structure: the structure decides what someone is paid, the calendar decides when.

Hourly, daily and piece-rate staff. On the employee's Pay & Group tab, set the pay type and the rate. Their pay is the approved units times the rate. Enter or import hours, days or pieces under Payroll, Worked hours before the run; this is where timesheet hours meet payroll, and daily-paid days can also come from attendance. Every change of pay type or rate is kept in the employee's history.

Contractors. Set the pay type to contractor (WHT). The person is then taxed by withholding tax on taxable gross instead of PAYE, with no pension or NHF. The default rate is 5%. Check it against your contracts and change it in Payroll setup, Payroll policy if needed. Withholding tax deducted shows on the payslip and in its own schedule for remittance.

Related articles