Creating Pay Templates
Using Pay Templates: Streamline Your Payroll Management
Pay Templates are a powerful feature within our online workforce management platform that allow you to efficiently manage employee compensation based on Australian award interpretations. With Pay Templates, you can create customized pay structures that cater to various days, times, and pay values.
A pay template is a collection of different pay rules used to calculate employees' pay rates. You can add and group multiple pay rules within the same pay template.
ClickTime Pay templates allow you to set pay rates that are applicable to your employees and the industry standards relevant to your business. You can set and customize the pay templates ranging from overtime penalties to weekend, after-hours, and public holiday rates.
Pay Templates are used for three reasons:
- To ensure payroll compliance with your industry, local state & federal rules
- To accurately budget staff shifts
- Allows you to calculate complex and different payroll scenarios more easily.
This guide will walk you through the process of using Pay Templates effectively.
CREATING A PAY TEMPLATE
You can assign different pay templates to staff members. For example, Casual staff can be assigned to the Casual Pay template, and the same goes for Part-Time, etc.
To add a new pay template:
1. Go to app setting > Payroll setting
2. Click on the ‘pay templates ‘tab on the left-hand side
3. Select ‘Add New’
4. Select ‘Pay rate template ‘from the drop-down menu
Defining Rules for Your Pay Template
Rules determine day, time payrates will apply, in addition to which Pay Category to be used for the rule . Here's how to define rules:
1. Click on Add New Rule or similar.
2. Choose the days of the week the rule applies to.
3. Set the start and end times for the rule.
4. Choose from three pay value options for each rule:
- Multiplier: Increase the employee's base hourly rate by a factor (e.g., 1.5x).
- Additional Amount: Add a fixed dollar amount to the base hourly rate.
- Fixed Amount: Set a specific fixed payment for the time period.
5. Select or create the Payroll category / export code for this rule.
6. Ensure that the rules cover the entire 24 hours for each day of the week. This ensures accurate and comprehensive compensation calculation.
7. Add as many rules as you like to suit your requirements.
8. Save the pay template
Public Holiday Rule
Keep in mind that when creating a rule for a public holiday, such as applying a different pay rate and assigning a specific pay category like 'PH' or 'PHoliday' for double-time pay, it must be added as a separate rule. This means you cannot combine a public holiday rule with any other days, such as Monday, Tuesday, Wednesday, and so on.
Exporting and Segregating Timesheets
When exporting timesheets to your payroll system, Pay Templates and export categories work in harmony to segregate employee hours worked according to the defined rules. For example, let's consider the following Pay Template:
And let us assume we have a weekly Pay Cycle Starting Monday to Sunday
Suppose an employee has worked the following hours during the week:
Day | Date | Site/ Job | timesheet hours | Total Hours |
Mon | 23/10 | Bankstown Airport | 00:00 - 07:30 | (7.30 Hrs) |
Tue | 24/10 | Haymarket | 10:00 - 11:00 | (1.00 Hrs) |
Sat | 28/10 | 00 Market St | 12:00 - 13:00 | (1.00 Hrs) |
Sun | 29/10 | 1st festival mall, | 23:00 - 06:00 | (7.00 Hrs) |
The system will segregate the employee's timesheet based on the Pay Template rules and export categories defined, resulting in a breakdown like this:
Day | Date | Site / Job | Payroll Category/ Export Code | Description/ Notes |
Mon* | 23/10 | Bankstown Airport | Night Span | 6.00 hours for work hours (00:00 - 06:00) |
Mon* | 23/10 | Bankstown Airport | Base Hourly | 1.30 Hours for work hours (06:00 - 07:30) |
Tue | 24/10 | Haymarket, | Base Hourly | 1.00 hour for work hours (10:00 - 11:00) |
Sat | 28/10 | 100 Market St | Sat Rate | 1.00 Hour for work hours (12:00 - 13:00) |
Sun* | 29/10 | 1st festival mall | Sun Rate | 1.00 hour for work hours (00:00 - 01:00) |
Sun* | 29/10 | 1st festival mall | Night Span | 6.00 Hours for work hours (0.00 to 06:00) |
Please notice how the hours have been segregated for Monday and Sunday according to the Pay Template rules:
Monday Hours Segregation:
The system has split the timesheet into two parts:
6.00 Hrs for the Night Span, covering hours worked from 00:00 to 06:00.
1.30 hrs for the Base Hourly, covering hours worked from 06:00 to 07:30.
Sunday Hours Segregation:
Sun Rate: The system segregates 1.00 hour, covering the time worked from 23:00 to 24:00, categorized under the 'Sun Rate' pay category.
Night Span: It also segregates 6.00 hours, which technically falls under Monday's working hours (00:00 to 06:00), categorized under the 'Night Span' pay category.
You might wonder why the system has included Monday's work in the Sunday timesheet record. This approach is designed to accommodate the pay cycle structure. In this scenario, where the pay cycle ends on Sunday, the system groups Monday's hours with Sunday to ensure that the employee is paid for the entire duration of the current pay cycle, which spans from Monday to Sunday.
This intelligent handling of shifts that cross pay cycle boundaries helps employees receive their rightful compensation for all hours worked within the specified pay cycle.
This methodology simplifies payroll processing, ensuring that employees are accurately compensated based on their actual work hours while adhering to the structure of the pay cycle.
Payroll Costing Breakdown Report
ClickTime provides you with a convenient option to generate a detailed breakdown report of the employee timesheet in Excel format. To access this report, follow these steps:
- Go to the Export screen
- Select the desired period or pay cycle you are interested in.
- on the left side of te screen, filter and select the employees you want to include in the report.
- Click the [Export selected items] button.
- A new popup window will appear.
- From the first drop-down titled "Export to," select "Payroll Costing Breakdown Report."
This report provides you with a comprehensive breakdown of each employee's timesheet data, simplifying payroll management and offering valuable insights for cost analysis.
Click on the below sample of the Excel Breakdown Report
Use multipliers
When creating rules, you'll see there is the option to use multipliers or flat hourly rates. We recommend using multipliers where possible. This is because multipliers tend to remain consistent across employee classifications and over time, whereas rates change more frequently (ie EOFY, birthdays, promotions). Multipliers typically won't require as much updating, and from a payroll perspective, this means fewer pay items are required in your payroll software.
Pay Template Rules
1. Deletion of Pay Templates:
* Pay templates cannot be deleted if there are active or inactive employees assigned to the template.
* Pay templates can be deleted only when there are no employees assigned to them.
2. Inactivation of Pay Templates:
* Pay templates can be made inactive even if there are inactive employees assigned to the template.
* Pay templates cannot be made inactive if there are any active employees still assigned to them.
In such cases, users need to remove or reassign the employees to a different template.
3. Reactivation of Employees:
* When an employee is made active again, they will be associated with their last assigned pay template.
* If the last assigned pay template is not active, the employee will be assigned to the default
pay template, which is "Fixed Hourly Rate All Days."
Customizing Pay Templates for Each Employee
Check this help article on how to customize the pay template based on the worksite for individual employees
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