Earnings Rates

Import or create earnings rates linked to award rules in Tanda.

Kate Taylor avatar
Written by Kate Taylor
Updated over a week ago

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 > Config > 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, however STP categories will need to be manually assigned.

To do this:

  1. Navigate to Payroll > Payroll Settings > Earnings Rates

  2. Find and click on the relevant earnings rate

  3. Select the relevant STP category from the dropdown list

  4. 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 Config > Earnings rates and click the + New button.

When creating a new earnings rate, enter the following fields:

  • Name

  • Earnings type - Either ordinary hours, overtime hours, or allowances

  • Payroll account - Choose from any accounts setup in your journal

  • STP category

  • One of either:

    • Hourly Rate

    • Multiplier

    • Fixed Amount

Use the tick boxes to confirm if the earnings rate:

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.

As allowances have more extensive reporting requirements, they will be imported to Payroll as individual earning rates.

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