Pay Type Examples

Modified on Mon, Jul 1 at 12:53 PM

Below are some typical pay type examples.


Salary

Tax - Taxable

Category - Regular 

Frequency - Choose as appropriate 

Start Date - Leave blank

Limit - Leave blank

Regular Amount - Leave blank























Hourly

Tax - Taxable

Category - Hourly

Frequency - Choose as appropriate 

Start Date - Leave blank

Limit - Leave blank

Regular Amount - Leave blank




























Bonus - Annual

Tax - Taxable

Category - Regular

Frequency - Once, for bonuses that are all paid in the same month

Start Date - Designate a month to hit the budget

Regular Amount - Leave blank to enter the bonus amount on the pay item for each position, or enter a default amount here for all positions























Bonus - Anniversary

Tax - Taxable

Category - Regular

Frequency - Anniversary for bonuses paid according to the employee's Anniversary Date

Start Date - Leave blank

Regular Amount - Leave blank to enter the bonus amount on the pay item for each position, or enter a default amount here for all positions





















Health Insurance

Add one pay type per insurance plan you offer employees if the account or rates differ


Tax - Non-Taxable

Category - Regular

Frequency - Usually Monthly

Start Date - Leave blank

Limit - Leave blank

Tiers - Change to Coverage One. Add a tier for each level of coverage, and the appropriate amount for each level.

























Dental & Vision Insurance

Add one pay type per insurance plan you offer employees.


Tax - Non-Taxable

Category - Regular

Frequency - Usually Monthly

Start Date - Leave blank

Limit - Leave blank

Tiers - Change to Coverage Two. Add a tier for each level of coverage, and the appropriate amount for each level.




























Retirement Match

Tax - Non-Taxable

Category - Percentage

Frequency - Usually Monthly

Start Date - Leave blank

Limit - Leave blank unless there is a limit on the total amount that the organization will match

Employer Percent - 100

Regular Amount - The base percentage if all employees are eligible when they start; otherwise, choose Tiers

Tiers - Select Months Employed, and enter the minimum number of months needed to work before this benefit is applicable

Source Percent - Percent organization wants to budget for - often the max available to the employee

Source Pay Types - Add all pay types to sum together as the basis for this pay type




















FICA - Social Security & Medicare

FICA can be often be budgeted via the Config tab, but it is necessary to utilize pay types when:

  • Separate GL accounts are utilized for the Medicare and Social Security portions of the FICA tax
  • There are enough positions that meet the annual cap for Social Security to affect the budget



Social Security

Tax - Is Tax

Category - Percentage

Frequency - Usually Monthly

Start Date - Leave blank

Limit - 10,453, the annual cap on Social Security to be paid for the 2024 calendar year

Calendar Limit - Check if your organization does not begin their fiscal year in January

Employer Percent - 100

Source Percent - 6.2

Source Pay Types - Add all pay types to sum together as the basis for this pay type; normally this includes all taxable pay types























Medicare

Tax - Is Tax

Category - Percent

Frequency - Usually Monthly

Start Date - Leave blank

Limit - Leave blank

Employer Percent - 100

Source Percent - 1.45

Source Pay Types - Add all pay types to sum together for this pay type; normally this includes all taxable pay types






























Use the links below to navigate through the learning path.

Pay Types << Pay Type Examples  >> Scenarios



Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select at least one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article