Examples of Custom Pay Types
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      Creating a Taxable Custom Pay Type for Higher Duties Allowance

      This example shows one possible set up of a custom pay type for a taxable Higher Duties Allowance.

      Updated: October 2024

      You have asked a manager to act as interim Head of Department for the next 3 months while the Department Head is on sabbatical and will compensate them with an additional $100 per day for this extra responsibility. Let's break down this example.

      This allowance is:

       ❌  A regular payment I can use system pre-loaded pay types for.
       ✅ I prefer using a custom pay type for clarity on the payslip or/and reporting and tracking purposes.
       ✅  This is a before-tax allowance, taxed as part of the employee's gross wages. 

      The custom pay type & timesheet should have the following:

       ✅  Custom pay type created in the taxable section
       ✅ Rate: 1 | Per: unit
       ✅ Allowance amount entered on timesheet as applicable
       ✅ This is income and taxed as part of gross wages.

      Here is an example setup:

      S6CPT_HigherDutiesAllowance

      • Create this custom pay type with a recognisable name in the Employee Profile - Pay Types tab and SAVE.
      • Select your recognisable pay type from the dropdown timesheet list.
      • Enter the amount of the allowance on the applicable days.
        • Leave the 'Exclude from annual leave calculations' tick box blank as you enter the amounts
      • The timesheet summary displays all taxable allowances together with the standard pay as one combined Gross figure.

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