What's covered in this guide?
What is an earnings rate?
Earnings rates are used to calculate an employee’s net pay based on the conditions of the shift they’ve worked. Base hourly wages, overtime, allowances, and deductions are common examples of earnings rates.
These earnings rates populate an employee’s payslip and are calculated as either:
Amount per hours/minutes in a shift (e.g. base hourly)
Multiplier of an employee’s base hourly rate (e.g. casual loading)
Single fixed amount for the entirety of a shift (e.g. meal allowance)
Access earnings rates
View and configure Earnings rates through Payroll > Payroll Settings > Earnings Rates.
Create earnings rates in Tanda
If a managed template is enabled in your Tanda account, Earnings Rates will be automatically created with the corresponding STP categorisation when you enable Tanda Payroll.
Any custom award rules or allowances in Tanda will also be created in Tanda Payroll as well upon export, but STP categories for allowances will need to be manually assigned.
To do this:
Navigate to Payroll > Payroll Settings > Earnings Rates
Find and click on the relevant allowance earnings rate
Select the relevant STP category from the dropdown list
Click Update to save the change
Create a new earnings rate
We recommend creating award rules in Tanda, and then importing them into Payroll as earnings rates. However, new earnings rates can be created in Payroll through Payroll Settings > Earnings rates and clicking the + New button.
When creating a new earnings rate, enter the following fields:
Name
Earnings type - Either ordinary hours, director's fees, overtime hours, leave loading, or allowances
Pay Information:
Hourly Rate
Multiplier
Fixed Amount
Journal account - Choose from any accounts set up in your journal
STP category (for allowances only)
Use the Settings tick boxes to confirm if the earnings rate:
Is exempt from PAYG - see here for more information
Accrues leave - dictated by your industry award
Incurs super - see here for more information
Incurs payroll tax - see here for more information
Is Qualifying Earnings - see here for more information
Confirm if there is partial taxation for the earnings rate:
Tax free amount
Tax free method - Per Year, Per Unit
If the tax free amount incurs payroll tax
Click the Create button once finished to save the new earnings rate.
How will award rules appear in Payroll?
Award rules are created as Earnings Rates in Payroll with either a fixed amount, multiplier, or hourly rate.
Award rules are grouped as one earnings rate if they share the following details
Multipliers (e.g. x2.0)
Applicable employees (e.g. Casuals)
Related to the same award
Ordinary vs overtime hours
In the example below, the two rules apply in different circumstances (missing a break, or too small of a gap between shifts), however both rules:
Have a x2.0 multiplier
Apply to Part Time employees on the Cinema Award
Consider ordinary hours
Therefore, both would be exported to the same earnings rate.
How will allowances appear in Payroll?
Allowances are also created in Payroll as Earning Rates, and generally as either a fixed amount or multiplier.
