There are three main categories in the system of payments:
- Direct Benefits (Salary, Wages, Allowances)
- Indirect Benefits (Annual Leave, Superannuation)
- Direct Charges (Tax Withholding, Child Support)
Each of the categories can have unlimited variations, and those variations can be customized to fit any scenario. Please refer to our dedicated pages to find more info.
Items are connected and can be based on other items (e.g. Holiday Accrual is based on Salaries, Saturday Pay, but not on Allowances or Overtime).
You can set up different configurations for different Employees, and pay them by the groups or together. You can also set up different pay periods for different Employees.
Relation between Payroll Item Types
Direct Benefits, Indirect Benefits and Direct Charges are related. Indirect Benefits and Direct Charges may be calculated on Direct Benefits selected for this calculation, E.g. Superannuation is calculated on Salary, Commission, but not on Overtime.
Primary item: item that will be base for calculation
Dependent item: item that will be calculated on the sum of all primary items.
One primary item may have multiple dependent items, e.g. Salary will be a base for calculating Superannuation, Annual Leave accrual or Income Tax Withholding.
One dependent item may have multiple principal items and will be calculated on the sum of these items if more than one appears on a pay run. For example, Tax Withholding as dependent item will be calculated on sum of Salary, Overtime Pay and Bonus (primary items). Superannuation may at the same time be calculated only on Salary.
You must apply the dependencies according to all rules and regulations. BTMsoft may assist you with this task but cannot assume responsibility for your decisions.