How To Set Up Payroll Pay Types
What you need to know:
AgExpert Accounting includes several default pay types that can be used when setting up employees. If you need a pay type that is not included, you can create a custom pay type in settings or directly within an employee profile.
Pay types are maintained separately for arm's length and non-arm's length employees. Most employees are usually considered arm’s-length, unless they are the business owner or an immediate family member of the owner. Non-arm's length employees include the owner, spouse, parent, child, sibling, grandparent or grandchild.
Pay types created for one employee type are not automatically available for the other. When adding a pay type to an employee, only the pay types associated with that employee’s type will be displayed.
What you need to do:
Identify the expense account that should be associated with the new pay type.
Confirm whether the pay type should be included in vacationable earnings, Health Services Fund calculations, RL-1 reporting, or T4 reporting before creating the pay type.
Confirm if you need to add arm’s length and non-arm’s length pay types.
How to (Step by Step):
To set up a pay type through Settings:
Click Payroll.
Select Employees.
Click Settings.
Select Pay types.
Click Add.
Enter Name.
Tip: When adding a pay type, you are creating a pay type available for all employees of the same type, so choose a generic name, rather than one specific to an employee.
Select Hourly or Salary from the Type drop-down menu.
Use the drop-down menu to select an Expense account.
Select Include on vacationable earnings, if applicable.
If the pay type should appear on a T4, use the Include on T4 box drop-down menu.
Tip: If the pay type is commission-based, select 42 – Commission from the Include on T4 Box drop-down menu. Otherwise, leave this field blank.
For Quebec residents:
a) Enable Include in Health Services Fund, if applicable.
b) Use the Include in Box RL-1 drop-down menu to select the appropriate RL-1 reporting box, if applicable.
Click Save.
To set up a pay type through an Employee profile:
Click Payroll.
Select Employees.
Click an employee.
Select Employment.
Click Add in the Pay Types section and select Add new pay type.
Enter Name.
Tip: When adding a pay type, you are creating a pay type available for all employees of the same type, so choose a generic name rather than one specific to an employee.
Select Hourly or Salary from the Type drop-down menu.
Use the drop-down menu to select an Expense account.
Select Include on vacationable earnings, if applicable.
If the pay type should appear on a T4, use the Include on T4 box drop-down menu.
Tip: If the pay type is commission-based, select 42 – Commission from the Include on T4 Box drop-down menu. Otherwise, leave this field blank.
For Quebec residents:
a) Enable Include in Health Services Fund if Health Services Fund contributions should apply to this pay type.
b) Use the Include in Box RL-1 drop-down menu to select the appropriate RL-1 reporting box, if required for this pay type.
Click Save.
References and Additional Resources
Still have questions? Contact support
Contact us at 1-800-667-7893 or email support@fccagexpert.ca if you require additional support. You can find other help options under the Question Mark Icon in the top right of AgExpert Accounting at any time.