QRG Create Pay Codes - Payment Pay Codes STP2

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Purpose

The purpose of this quick reference guide is to step through the process of creating Payment Pay Codes. The intended audience for this document are system administrators / standard users.

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Steps

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Create Payment Pay Code record

Pay Codes are applied to Pay Transactions, Leave Rules, Leave Events and Interpretation Rules processed for an Employee. The Payment Pay Code record is used to define Pay Codes for Payments made to a Payee. The record holds General Information and Pay Code Setup details. Create a new Payment Pay Code record by following the below steps:

3. Click on the New button (see Figure 3).

4. Choose the record type of Payment and click on the Next button (see Figure 4).

5. Follow this step in the sequence given below:
   1. Populate the following required fields to provide the base details of the Payment Pay Code (see Figure 5):
      1. Pay Code Name
      2. Description
      3. Pay Advice Description
      4. Pay Advice Sort Order
   2. Populate the following optional fields as required (see Figure 5):
      1. If Pay Transactions associated with this Pay Code will be invoiced to clients, populate the Invoice Name field.
   
   If the Pay Transactions will be invoiced to clients, then the Invoice Name field needs to be populated.
   3. Populate the following required fields to provide the base details of the Payment Pay Code (see Figure 6):
      1. Pay Rate Multiplier
      2. Invoice Taxable? (Yes or No)
      3. STP Payment Type
   4. Populate the following optional fields as required (see Figure 6):
      1. Invoice Rate Multiplier is the multiplier that will be applied to Invoice Rates using this Pay Code.
      2. To indicate if Leave will accrue when this Pay Code is applied in Pay Transactions, check the Accrues Leave checkbox.
      3. If the field STP Payment Type is populated as Paid Leave, you must also populate the STP Leave Type field.
      4. If Marginal Tax calculations should be applied to Pay Transactions using this Pay Code, check the PAYG Marginal Tax checkbox.
      5. If Pay Transactions associated with this Pay Code are exempt from the taxable earnings calculations, check the PAYG Tax Exempt? checkbox.
      6. If Pay Transactions associated with this Pay Code should be exempt from GST during the Australian Contractor Payroll calculation, check the GST Exempt? Checkbox.
      7. To use this Pay Code automatically when providing Payees with excess refunds after Ordinary Time Earnings cross the maximum contribution base, check the Excess SGC Refund checkbox.
   
   The Pay Rate Multiplier field is applied to the Pay Rate on the Assignment Rate Record, to determine the Pay Rate to apply on the Pay Transactions. If the Pay Transactions are being invoiced, the Invoice Rate Multiplier field also needs to be populated.
   5. Populate the following optional fields as required (see Figure 7):
      1. If Payroll Tax needs to be reported for Pay Transactions using this Pay Code, check the AU Payroll Tax Reportable? checkbox.
      2. To apply regional Payroll Tax exemptions for Pay Transactions using this Pay Code, select from the picklist values provided in the AU Payroll Tax Report Exemptions field.
      3. To indicate if this Pay Code contributes to the Ordinary Time Earnings, check the Contributes to OTE checkbox.
      4. If Pay Transactions associated with this Pay Code will contribute to the Total Quantity sum during Pay Batch processing, check the Contributes to Total Quantity checkbox.
      5. To indicate that units worked against this Pay Code should be summed during Pay Batch Calculation for payment of some Allowances, check the Contributes to Allowance Qty Worked checkbox.
      6. To sum the units worked against this Pay Code during Pay Batch Calculation for the purposes of Quantity Based Deduction Calculation, check the Contributes to Dedn Qty Worked checkbox.
      7. To exclude any Pay Transactions related to this Pay Code from displaying in the Pay Advice PDF, check the Exclude From Pay Advice checkbox.
6. Click on the Save button.

A new Payment Pay Code record has been created (see Figure 8).

7. To modify an existing Payment Pay Code record, open the required record and select the Edit button available on the top right side of the page. You can also double click in any of the fields that need editing or just click on the pencil icon that appears within fields when you move your cursor over the field.
8. When complete, click on the Save button.

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Field Descriptions

Accrues Leave indicates when Pay Transactions using this Pay Code will be considered during Leave accrual calculations. AU Payroll Tax Reportable? determines if the Pay Code will be considered during 2cloudnine Payroll Tax reporting processing. AU Payroll Tax Report Exceptions where a Pay Code is reportable for Payroll Tax, list any localities here where the Pay Code is considered not reportable. Contributes to Dedn Qty Worked indicates whether the units worked of this Pay Code will be summed during Pay Batch Calculation for the purpose of Quantity Based Deduction Calculations. Contributes to OTE indicates if the Pay Code Contributes to Ordinary Time Earnings. Contributes to Total Quantity indicates whether this Pay Code record contributes to the Total Quantity sum displayed in Pay Batch Manager and record in Payee Pay Batch records. Description is the description of this Pay Code. Excess SGC Refund indicates that this Pay Code will be used automatically when Ordinary Time Earnings cross the maximum contribution base and the Payee is due to be paid the excess refund. Exclude From Pay Advice indicates that any transactions related to this Pay Code will not be displayed on the standard Pay Advice PDF. GST Exempt? When set to true, any Pay Transactions using this Pay Code will not attract GST during Australian Contractor Payroll calculation. Invoice Name defines the Name that will be used on Invoices for the Pay Code, and can only be a maximum of 15 characters. If not populated, any Invoices referencing this Pay Code will be displayed as blank. Invoice Rate Multiplier is the multiplier which will be applied to Invoice Rates using this Pay Code. Invoice Taxable indicates if the Pay Code should have GST tax applied in addition when invoiced. Pay Advice Description is the description that will be displayed to a Payee on their Pay Advice PDFs for any Pay Transactions related to this Pay Code. Pay Advice Sort Order defines the order in which Pay Transactions referencing this Pay Code will be displayed on Pay Advice PDFs. Pay Code Name is the name given to the Pay Code record that is being created. PAYG Marginal Tax indicates whether marginal taxation should be applied during the Pay Batch Calculation of Pay Transactions using this Pay Code. PAYG Tax Exempt? indicates whether Pay Transactions using this Pay Code will count toward the taxable earnings or the non-taxable earnings of the Payee. Pay Rate Multiplier is the multiplier which will be applied to Pay Transactions using this Pay Code. Quantity Based Allowance Calculation indicates whether the units worked against this Pay Code will be summed during Pay Batch Calculation for the payment of some Allowances. STP Payment Type needs to be populated for Payment Pay Codes, and defines how the Pay Code will be disaggregated in STP2 reporting. STP Leave Type must be populated if the STP Payment Type is Paid Leave, and defines how this Pay Code will be reported in STP2 Reporting.

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Further Information