Pay categories have the ability to set a penalty loading, which can then be applied to the base rate supplied for an employee.
You can set or adjust the penalty loading for a pay category by following these steps:
1. Go to Payroll Settings and then select Pay Categories
2. Click on the pay category you'd like to adjust the penalty loading for to expand the details of the pay category.
3. This will expand the pay category details.
4. You can then apply the appropriate penalty loading percentage to the base and linked pay categories.
5. You can also click add linked category button to be able to add a new pay category name.
6. Click Save.
Note : It is important to make sure that the pay run default has been configured correctly by following the steps below:
1. Click on the Name of the Employee.
2. Go to Pay run Defaults.
3. Check the Primary Pay Category and the base pay rate.
Thereafter, you can now create a pay run and add the Penalty loading manually.
1. Create a New pay run (complete the details such as pay schedule and end date)
2. Click on the name of the employee to expand the details.
3. Go to Actions button on the right side.
4. Choose Add Earnings.
5. Select the Category you had created with the Penalty Rate.
6. Enter the Overtime hours.
7. Click Save.