Percentage Pay Types Tutorial (Video)

This tutorial focuses on the “percentage" pay type.  It provides examples of how to set up percentage pay types and how to assign them to employees

The percentage pay type is used to automate the calculation of budgeted amounts in proportion to other compensation, basing these budgeted costs on a percentage of the other pay items assigned to a position. Examples where you might want to use this are:

• Workers comp costs
• State unemployment
• Social security tax
• Company-paid retirement match

When setting these up, you must define the following information:

• The base, or “source”, pay types
• The percentage rate to be applied to the base compensation
• The percentage of that calculated value that is to be paid by the employer. 

You may also define a limit for the total employer responsibility per calendar year. 

Percentage Pay Types