What Are Custom Pay Types and How To Create Them

Custom pay types are set up by you to clarify payslips and for tracking and record-keeping purposes. This article explains how this works and takes you on a walkthrough of the creation tab.

Updated: October 2024

Custom pay types are very useful for clarity and adding extra information to the payslip. However, use our Thankyou Payroll system pre-loaded pay types where possible for most regular payments. These have been set up in the system to ensure correct tax rates are applied and to work with other calculations. For a list and explanation of our pre-loaded pay types, follow this link.

If, however, you wish to set up a unique pay type for allowances or deductions, or need to set up multiple responsibilities or jobs with different pay rates - you’re in the right article!

In this article:

• Find out why and where to use custom pay types
• Get to know the Pay Types tab with a walkthrough

Follow these links to their articles to find out:

• How to create Custom Allowance Pay Types, with examples.
• How to create Custom Deduction Pay Types, with examples.

Why use custom pay types?

• To customise the payslip - adding additional information/explanations
  • Here are some examples of 'zero-value' payslip notes added to a timesheet:
    • Adding the date of birth on the payslip for an under 20 y/o employee
    • Keeping track of additional vacation days gifted as a one-off bonus
  • We have videos on this! Take a look...

• Creating custom pay types with distinctive names promotes transparency and improves record-keeping
• You can include custom pay types in reports, or run individual reports per pay type.
• You can add tracking options to custom pay types

Custom pay types are created manually in each individual employee's profile. * Tip: Choose to show pay rates on employee payslips if you use custom pay types. This will help with clarity. *Run a Pay Type Report to see a list of the custom pay types you have created, so you can use the same wording for all your employees. This will save you time and limit errors.

Let's explore the Pay Types tab

Custom pay types are created in the Employee Profile. Select an orange explore button to find out more about each field.

Now that you know what to do, you can explore the specific types of custom pays you need to create and view some examples of the most common ones to get you on your way.

That is it! Personalising your payslips and keeping a handle
on your payroll records is that easy.