Create one pay item for all overtime! (Or weekend rates, or leave loading)

MYOB Moderator MichellePV
18 Posts
MYOB Moderator
MYOB Moderator

18Posts

35Kudos

0Solutions

Ever tried paying 10 employees (all on different hourly rates) weekend rates? How about Leave loading? Overtime? Starting to feel stressed just thinking about it? You’d calculate the rate, create a new pay item for each employee and make sure you assigned them to the right employee, the right rate for the right hours. It was manual. It was too easy to make a mistake. Well, read on… because our new base multiplier is going to make this a thing of the past.

 

Create one pay item for all overtime! (or weekend rates, or leave loading)

Instead of creating dozens of pay items for each employee, you only need to create a pay item for each rate that’s a calculation based off an employee’s normal pay. You might have one for overtime, one for leave loading and one for Sunday rates, for example.

 

When you process their pay, the rate is automatically calculated based on their normal rate. Bliss!

 

The details of how it works

 

Create the pay item

  1. Create a new pay item.
  2. From Rate, select Multiplier of normal rate, and then enter the rate to multiply the normal rate by.

For example:

Time and a half is 1.5 x normal rate

Leave loading of 17.5% is 0.175 x normal rate

 

PS While you’re there, delete all those extra pay items you’ve created in the past to do this. You don’t need them anymore!          

 

Link the pay item to your employees

  1. Open the employee’s record.
  2. Go to Pay items – earnings & deductions, then add the earning just created.

 

Process pay

  1. Create a new pay run.
  2. Enter the number of hours against the new pay item (for example, Overtime), and any normal hours.

You’ll see that the overtime pay item calculates automatically based on the employee’s normal rate.

 

Now you can sit back and work out how to spend all those hours you’ve got back. Coffee anyone?

 

Learn more about processing overtime and leave loading in our help.

6 Comments
Experienced Partner WayneC
21 Posts
Experienced Partner

Great to see this change implemented. Much more practical than the way it was!

 

Faceman
1 Post
Cover User

Great update, is there a plan to create an hourly allowance that can have a default number of hours? e.g. most of my employees work every Saturday so it would be great to not have to manually enter 6 hours in each pay run.  

BPCAccounting
3 Posts
Cover User

Great update! Would also be nice to not have to go into the employees individually to add this (or any) pay item. instead in the pay item you add the employees to the pay item (like in Accountright).

JS1983
5 Posts
Cover User

This is fantastic thank you! Great instructions as well, very easy to follow!

Partner CameronTalty
3 Posts
Partner

Please add the suggestions by Faceman & BPCAccounting

Partner lmb1707
27 Posts
Partner

Hi Faceman

 

You can set up standard employee pays in the employee card:

-> Cards

-> Employee

-> Choose employee

-> Payroll Details Tab

-> Standard Pay

Standard Pay Screen Shot.png

 

Note: due diligence of checking payroll remains paramount, even though this can be set up as an automated process, you should always check payroll before posting.