Setting an employee salary
There are two components to configuring a user's salary.
Pay Conditions - where the "Annual Salary and "Contracted Weekly Hours" are expected in rosters and timesheets are set.
Payroll Details - where the payroll earnings type, expense account, and department allocations are set. Customers wanting to hide salaries from rosters and timesheets will configure the Annual Salary and Hours here (see option 2 below).
Pay Conditions Configuration
The first step in configuring is to navigate to the employee's Pay Conditions tab on their profile to enter their Salary & Contracted Weekly Hours:
Next, navigate to the users payroll profile, then select the payroll details tab.
In the Autopaid Salary Earnings section select “+ Add”
Select the earnings type for the salary.
Within Payroll, there are two methods of configuring an employee's salary.
The employee's pay conditions match how they should be paid.
The employee's pay conditions do not match how they should be paid.
Option 1: Split By Percentage
When the salary in the employee's preconditions matches what they should be paid, then using the percentage method is recommended. This method lets you split wages across earnings types and departments via a percentage. This percentage is retained should the employee's salary or contracted hours change.
When adding the earnings line use the % of salary field to configure how much of the salary should be attributed to the earnings line.
For example in the above example allocating 100% will automatically calculate the hours and salary. This is pulled from the employee pay conditions & will be updated in line with changes to those pay conditions.
If you need to split the earnings between departments you can nominate a percentage of the salary (in this example 75%) to one department.
The remaining percentage can be allocated to other departments by adding new earnings lines.
Note that the sum of percentages cannot exceed 100% & a warning will be displayed should they not total 100%
Option 2: Split By Hours
In a situation where the salary in an employee's pay conditions should not match what they are paid the hours method. When using this method the data on the employee's payconditions is ignored and automatic updates will not occur when changes are made.
When adding the earnings line use the “Hours per week” and Annual salary” fields to specify the hours and dollars for that earnings type.
For example in the above example allocating you could specify the employee works 40 hours per week for $80,000 per year. This is different to the hours and salary configured in the employee's payconditions.
If you need to split the earnings between departments you can nominate hours and salary to different earnings lines. Using the above example you could allocate 30 hours to “Bar” and 10 hours to “Kitchen”
Note: that when allocating hours for a salary you will need to manually calculate the salary allocated to each line.
FAQ: What if an employee's weekly contract hours are more than 38, but they only accrue leave based on a 38-hour week?
FAQ: What if an employee's weekly contract hours are more than 38, but they only accrue leave based on a 38-hour week?
If an employee's standard contract is more than 38 hours, but you want to cap the amount of leave they can accrue, you should split the autopaid templates across two earnings lines.
In this scenario, the earnings rate 'Hospitality - Base Hourly ( + 38 hours) is configured not to accrue leave. Learn more about configuring earnings rates
Creating payslips for staff with autopaid templates
Employees with autopaid earnings templates will have payslips automatically created when you finalise timesheets in Tanda and export timesheets to your payrun.
Note: Autopaid earnings lines will stack on top of any normal award rules that are exported from the timesheet. Learn more about configuring payroll for salaried staff.
Automatic adjustments of autopaid templates when employees take leave
When employees have approved leave recorded on their timesheet, the autopaid earnings template will be automatically reduced by the number of leave hours being taken.
Scenario: Sarah Smith is paid an annual salary of $50,000, for 38 hours per week of work.
In the last pay period, Sarah took one day (7.6 hours) of annual leave. The autopaid earnings template was automatically adjusted to 30.4 hours so that the employees working hours + leave totalled their 38-hour-a-week contract.
FAQ: If an employee has multiple earnings lines on their autopaid template, which one will be reduced when leave is taken?
FAQ: If an employee has multiple earnings lines on their autopaid template, which one will be reduced when leave is taken?
Option 1: Percentage split method - The earnings will be reduced proportionally based on their percentage split.
Option 2: Hours split method - The Primary earnings line will be reduced first, followed by the other lines in order, should the primary reduce to 0 for the period.
