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Paying an employee a monthly salary

Understanding how setting up a monthly salary works in our system.

An annual salary paid monthly is set up in an employee's 'Standard pay' tab. This is for calendar months, i.e. pay periods from the 1st through the 31st, not straddled pay periods running from the 20th to the 20th. For those, you'd need to set up an annual salary divided by 52 weeks paid out 4-weekly. 

How to add monthly salaried amount to an employee's profile

In the example below, the employee is on a salary of $91000.00 per year and will be paid on a 12-month cycle so we'll use the option to divide the sum by 12 months (calendar).

  1. Enter the annual rate.
  2. Select per year.
  3. Divide by 12 months (calendar).
  4. Select the appropriate tax code.
  5. Set the days to complete a week.
  6. Set whether or not the hours worked matter affect the amount the employee gets paid.


Based on what you have added for the employee's standard pay options, the weekly default can be set.

In the above example, I have added the salary for 12 months indicating that this employee works for 5 days in a week and that I do not want to record the hours worked per day (salary paid regardless of the hours worked- does not change the amount paid monthly)

Instead of adding the hours to the default week, I have added '1's to signify the entry as a day.


Creating a timesheet for a monthly pay

Once you have saved the details in the employee's profile, you can return to the dashboard to create a new pay. Switch the employee's name on to create a timesheet.

In the timesheet entry and reporting page, add multiple weeks from the 1st of the month to the last day of the month.

In the example below, I have used the month of June from the 1st to the 30th. This employee works from Monday to Friday only. With the salary being paid $91000.00 per year, divided over 12 months will result in a gross of $7583.33.

  1. Start the timesheet from the 1st day of the month.
  2. Select the correct pay type (standard pay).
  3. Add a week to this pay.
  4. Update and save.
  5. Check the total gross.


Regardless of the number of days, by setting a default monthly pay, your gross should be the same every month. If this is not being calculated and shown correctly would mean that the set up in the profile is not correct.

If there is an issue, please call our help team on 0800 895 146 or alternatively email us on help@thankyoupayroll.co.nz for further assistance.

With a monthly pay, the timesheet has to start from the first day of the month, and include every working day up to (and possibly including) the last day of the month. 

If all of your employees are paid monthly salaries you can set your default pay period to monthly in your payday settings. Whenever you create a pay on the dashboard simply set the pay period start date to the 1st of the month and click the default pay button.

You can also automate monthly pay cycles as long as your automatic payment to us comes on the same day of the month relative to your default processing plan. For example, a default payday of Thursday in the 3rd week of each month following the 2-day slow processing plan will require an automatic payment every 3rd Monday of the month.