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
- Create a new pay item.
- From Rate, select Multiplier of normal rate, and then enter the rate to multiply the normal rate by.
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
- Open the employee’s record.
- Go to Pay items – earnings & deductions, then add the earning just created.
- Create a new pay run.
- 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.