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Understanding pay codes

How pay codes are organised and used in SmoothPay.

Updated over 3 months ago

Pay codes categorise different types of payments and leave in SmoothPay.

Pay code categories

Pay codes are organised into three main categories:

Work

  • Paid time

  • Paying employees per hour for being at work

  • Can be saved as part of a template pay

Leave taken

  • Paid time

  • Paying employees for being on leave

  • Cannot be saved as part of a template pay

  • LWOP codes can be set up but are not necessary for anything other than tracking

Allowances

  • Not paid time directly

  • Every other type of payment that is not paid time directly

  • Can be saved as part of a template pay

Deductions

Recorded under the Payments tab in the staff screen or "recurring deduct" in the payrun screen.

Recurring deduction:

  • Regular deduction from an employee's NET pay

  • Can be a set amount that is deducted until further notice

  • Or a debt with a balance that is self-managed

Sundry deduction:

  • One off deduction from an employee's NET pay

  • Should be used instead of a recurring deduction, if the deduciton is truly one off

Using pay codes

When entering pay data:

  1. Select the appropriate category tab (Work, Leave Taken, Allowances).

  2. Select the specific pay code.

  3. Enter the units (hours, days, weeks or amount).

  4. Enter the rate if different from the default

  5. Then Save

The pay code determines how the payment is treated in terms of tax and superannuation, with whatever classification is linked to the pay code.

Setting up custom pay codes

You can create custom pay codes to suit your organisation's needs in the Codes screen.

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