Pay codes are used to define how different types of pay items—such as ordinary time, overtime, allowances, and leave—are processed within Rates & Rules.
How to create a new Pay Code
Here are steps to create new pay code:
In the left-hand pane of the Rates & Rules, click Pay Code to open Pay Code List screen.
Click Add.
In the Name field, enter a unique name for the pay code.
The name must be unique within the selected country.
Use the language applicable to that country.
In the Sort Order field, enter a numeric value to control where the pay code appears in lists.
Lower numbers appear higher in lists.
Frequently used pay codes should have lower values.
Update any default options as required and add bill oncosts and/or pay oncosts if needed.
If the pay code:
Is assigned to Australia and has a Pay Code Type of Allowance, click the Allowance tab and configure the allowance details.
For more information, see Configuring Allowance Pay Codes.Is assigned to the United Kingdom, see Configuring Pay Codes (UK) for additional country-specific fields.
Save the Pay Code.
Pay Code Entry Screen – Field Descriptions
User can refer to the table below to understand each pay code fields.
Field | Description |
Name | Name of the pay code. |
Pay Code Type | Determines how the pay code is grouped. Defaults to Ordinary. Other options are Overtime, Allowance, Reimbursement, and Leave. For the United Kingdom, additional types (SMP, SAP, SPP, ShPP, SPBP) are available for statutory child-related payments. These are automatically used during pay batch processing and determine employer recovery at the wage cost stage. |
Unit Type | Specifies how pay items are measured. Defaults to Hour(s). Select Unit(s) if payments are based on quantities rather than hours. |
STP Paid Leave Type | Australia only. Used when the pay code type is Leave to determine how leave payments are reported for Single Touch Payroll when not linked to a leave type. |
Country | Country to which the pay code belongs. Defaults to your assigned country. Once saved, this field cannot be changed. |
Export Code | Maps this pay code to a corresponding pay code in an external payroll system when exporting data. |
Import Code | Maps a pay code from an external payroll system to this pay code when importing data. |
Active | When selected, the pay code can be linked to new pay code rules. If cleared, it cannot be linked to new rules, but existing rules continue to function. |
Sort Order | Controls the display order of pay codes within Rates & Rules. Accepts numeric values (including negative numbers). Lower values appear higher in lists. Pay codes with the same value are sorted alphabetically. |
Workers Comp / Other Payments | Australia only. Indicates the pay code is used for workers’ compensation or accident injury payments. |
Include in Job Rate Estimate | Includes the pay code rate in job order rate estimates shown in Recruitment Manager. |
Include at Leave Payments Stage | Includes payments made through leave deduction rules at the Leave Payments stage of a pay batch. |
Bonus / Commission Payments | Indicates the pay code is used for bonus or commission payments where separate identification or reporting is required. |
Return to Work Payments | Australia only. Indicates the pay code is used for return-to-work lump sum payments. |
Start Date Filter | Filters linked oncosts based on their validity start date. Defaults to the current date. |
End Date Filter | Filters linked oncosts based on their validity end date. |
Linked Bill Oncosts | Displays and allows linking of bill oncosts associated with the pay code. |
Linked Pay Oncosts | Displays and allows linking of pay oncosts associated with the pay code. |
Last (Timesheet/Gross Wage) End Date | Shows the most recent date the pay code was used in a timesheet or gross wage batch. This date determines whether the pay code attributes and oncost links can be edited. |