Pay Items

Form ID: (MP.PP.22.10)

On the Pay Items form, you can maintain the items that make up each employee's pay. Pay items can be credits, e.g. income, or debits, e.g. superannuation.

Note: When a pay item is edited, the system automatically updates all employees' Standard Pays and any open pays. While an open pay is being automatically updated, it is moved into the UPDATING status and cannot be edited. Once the update has been made, the pay is moved back to the OPEN status.

Form Toolbar

The form toolbar includes standard and form-specific buttons. For the list of standard buttons, see Form Toolbar and More Menu. The form-specific buttons are listed below.


Button	Description
Pay Item Liabilities	Opens the Pay Item Liabilities (MP.PP.10.25) form, filtered to show the pay item.
Recalculate Standard Pays	Opens the Recalculate Standard Pays (MP.PP.23.20) form, where you can recalculate employees' Standard Pays to update them for any changes to pay items that you have made.
Actions	Provides the following actions: Change Limit: Opens the Pay Item Limit (MP.PP.22.20) form where you can set up one or more limits on the pay item. Change Threshold: Opens the Pay Item Threshold (MP.PP.22.30) form, where you can apply minimum and/or maximum thresholds to the pay item. Delete Pay Item: Deletes the pay item and removes it from any employees' Standard Pays, but not from open pays. Note: If the pay item is a reducing balance deduction, the Change Limit and Change Threshold options are disabled.

Summary Area

In this area, you can specify the basic details for a new pay item. You can also select an existing pay item by its ID code and view its details.


Element	Description
Pay Item ID	The unique name that identifies the pay item. The name can be up to ten characters long.
Description	The detailed description of the pay item. This is the display name that appears in all areas of the MYOB Acumatica system.
Payslip label	The detailed description of the pay item that appears on employees' pay slips. By default it is the same as the Description, but it can be altered.
Active	Whether or not the pay item is active. Inactive pay items will not be available for selection.
Type	The type of pay item that this item represents, e.g. income or superannuation deduction. Types are maintained on the Pay Item Types (MP.PP.21.60) form.
Taxation	How the pay item should be taxed. Select one of the following options: Taxable: Standard PAYE - NZ only Taxable: Standard PAYG - Australia only Tax-free (Paid after tax) Taxable: Extra Pay (Generic) - NZ only Taxable: Extra Pay (Back Pay) Taxable: Extra Pay (Lump Sum) Taxable: Extra Pay (Regular Bonus) - NZ only Taxable: AL Unused - AU only Taxable: ALL Unused - AU only Taxable: LSL Unused - AU only Taxable: Custom rate Taxable: Custom amount Taxable: Termination For Deduction and Employee Super pay items, the following options are available: Not taxed: Normal after-tax deduction Pre-tax deduction: Standard PAYG/PAYE Pre-tax deduction: Custom rate
Legislated 'Return to Work'	This checkbox is available for Australian companies, if the "Taxable: Custom rate" option is selected for Taxation.
Tax @ (%)	This field is available if the "Taxable: Custom rate" option is selected for Taxation. Enter the percentage tax rate that will apply to the pay item.

Table 1. Attributes SectionThis section displays attributes that affect the pay item as a whole.
Element	Description
Maximum limit applies?	This field displays "Yes" or "No" depending on whether or not a maximum limit has been set up for this pay item on the Pay Item Limit (MP.PP.22.20) form.
Threshold(s) apply?	This field displays "Yes" or "No" depending on whether or not one or more thresholds have been set up for this pay item on the Pay Item Threshold (MP.PP.22.30) form.
Super?	This field displays "Yes" or "No" depending on whether or not the pay item is a superannuation contribution, as determined by its pay item type.
Entitlement?	This field displays "Yes" or "No" depending on whether or not the pay item relates to an entitlement, as determined by its pay item type. If yes, select the entitlement that the pay item is related to. Entitlements are created on the Entitlements (MP.PP.33.00) form.
Allow Leave Reduction	This option is available for pay items that relate to leave entitlement payments. If it is ticked, then when this leave pay item is added to an employee's pay, the employees' salary or wages will be reduced by the leave amount. If this option is not ticked, then employees' salary or wages will not be affected by this pay item. Note: When a leave pay item that has this option ticked is added to an employee's pay, the main table of the Employee's Current Pay (MP.PP.310.30) form shows the calculated value of the income pay item (salary or wages) being automatically adjusted, but the quantity of the income pay item is not reduced—the details of the income reduction are visible in the footer of the Employee's Current Pay form.
Cash Up (NZ) Cash Out (AU)	Selecting this checkbox lets you use this pay item to process cash up/cash out on the Employee's Current Pay form (MP.PP.31.30).

Calculation Method Tab

This tab displays the formula that will be used to calculate the value of the pay item each pay.


Element	Description
Accrual Method	This dropdown is available for entitlement accrual pay items. Select how the entitlement should be accrued. Choose from: Full Contract Accrual - a fixed accrual that distributes the entitlement equally over every pay in the year/entitlement period. Note: New Zealand – For entitlement accrual pay items linked to an annual leave entitlement, Full Contract Accrual is automatically selected and can't be changed. Accrued Pro rata - an extension of a Full Contract Accrual, which takes into account eligible hours each pay in relation to standard hours. Using this method, the accrual is based on the actual eligible time worked in relation to the full pay period hours. The Entitlement Accrual Basis section that appears displays the pay items that the entitlement will be pro rated on. Explicit - this method provides for an accrual amount based on the period specified within the accrual pay item. The Method dropdown becomes available, so that you can select a calculation method and set up its options manually in the same way as other types of pay items. This replaces the accrual rate defined in the entitlement that the pay item is related to.
Method	The method that will be used to calculate the pay item's value. Select one of the following options: Amount Rated Percent Of The option selected here will affect the elements that appear below.
Precision	The precision with which values will be calculated. Select one of the following options: Rounded Cents Truncated Cents Rounded Whole Dollars Truncated Whole Dollars

Table 2. Amount SectionThis section appears when "Amount" is selected for the **Method**.
Element	Description
Amount	The default dollar amount of the pay item. This can be left at $0.00 and edited when the pay item is added to an employee.
per	The frequency of the pay item. In cases where the frequency is different from the frequency of the pay group that the pay item appears in, it will be applied proportionately, e.g. if the pay item specifies an amount per fortnight and appears in a weekly pay group, the value will halved. Select one of the following frequency options: Pay Week Fortnight 4-Week Bi-Month Month Quarter 6-Months Year
which represents	The number and kind of units that the pay item represents. You can select one of the following units: Hours Days Pieces Units

Table 3. Rate SectionThis section appears when "Rated" is selected for the **Method**.
Element	Description
Use Employee's Rate	Select this option to calculate the pay item using one of the employee's defined pay rates. When this option is selected, you must select the rate to use from the dropdown next to this option. Rates are created on the Pay Rate Labels (MP.PP.21.20) form. Employees' rate values are entered on the Employee Pay Groups (MP.PP.22.50) form.
Use Custom Rate	Select this option to calculate the pay item using a rate you specify here. When this option is selected, you must enter the rate into the field next to this option.
Value Multiplier	Enter a value to multiply employees' units by, e.g. for an overtime pay item where employees earn 1.5x their normal rate, enter 1.5.

Table 4. Units SectionThis section appears when "Rated" is selected for the **Method**.
Element	Description
Entered	Tick this option if the number of units should be entered for each employee on their Standard or Current Pay. You can specify a Default number of units and select the Unit Type, e.g. hours or days.
Derived	Tick this option if the number of units should be derived from another pay item or group of pay items. Select the pay item(s) to derive this item's units from in the table that appears when this option is selected.

Table 5. Percentage SectionThis section appears when "Percent Of" is selected for the **Method**.
Element	Description
Percentage	Enter the percentage that will be calculated.
of	Select one of the following options to determine what the percentage will be calculated from: Gross Taxable Income Income eligible for Superannuation - AU only Income eligible for Payroll Tax - AU only Item qualifying for Work Cover - AU only Income eligible for KiwiSaver - NZ only Income eligible for Relevant Daily Rate (RDR) - NZ only Item qualifying for Holiday Pay - NZ only Selected Pay Items (Summed)
Excluding the first	The dollar amount that should be excluded from the total value that the percentage is calculated from.
per	Select one of the following options: Pay Week
Table	The table at the bottom of this section displays the pay items and/or pay item rollups that will be summed and used to calculate the pay item's percentage value. Selecting any option other than "Selected Pay Items (Summed)" will pre-populate the table with the relevant pay items. If "Selected Pay Items (Summed)" is selected, use the toolbar controls to add the pay items/pay item rollups to be summed.

Additional Info Tab

This tab contains additional settings that affect the pay item. Some sections' availability depends on the pay item's type.

Table 6. Visibility SectionThis section determines how the pay item will appear in various contexts.
Element	Description
Show on Payslip	Ticking this box means that the pay item will be visible on employees' payslips.
Show Calculated Dollar Value	Ticking this box means that the pay item's calculated dollar value will be displayed when editing employees' Standard Pays and Current Pays.
Show Calculated Units	Ticking this box means that the pay item's calculated number of units will be displayed when editing employees' Standard Pays and Current Pays and the pay item's calculated rate will be displayed on payslips.

Table 7. Expense Allocation SettingsThis section determines whether or not expenses related to the pay item can be allocated to GL accounts and/or projects. Payroll expense allocations are set up on the Expense Allocations tab of the Payroll Preferences (MPPP1100) screen.
Element	Description
Exclude from Allocation	If this check box is ticked, expenses related to the pay item will not be allocated to GL accounts and/or projects.
Update Quantity for Time Allocation	This check box is available for income pay items. Tick this box if you want to post quantities to the GL when allocating time-based expenses for this pay item.

Table 8. Override Value SectionThis section determines whether or not the pay item defaults can be edited.
Element	Description
Standard Pay	If this check box is ticked, it will be possible to override the pay item's defaults when adding it to an employee's Standard Pay.
Current Pay	If this check box is ticked, it will be possible to override the pay item's defaults for an employee as part of a Pay Run (Current Pay).

Table 9. Self Service SectionThis section determines whether or not leave pay items will be available in the Self Service module. This section isn't available for pay items with a type of Entitlement Payment.
Element	Description
Allow Leave Request Selection	Tick this box if the pay item should be available for selection on the Submit a Leave Request (MP.ES.30.20) form in the Self Service module.
Require Attachment Upon Leave Request	Tick this box if employees are required to add an attachment to leave requests for this item, e.g. a doctor's note for sick leave. The employee will not be able to submit their request until a file has been attached.

Table 10. Public Holiday SectionThis section determines whether or not the pay is for public holiday worked payments.
Element	Description
Is Public Holiday Worked	Tick this box if the pay item is for public holiday worked payments.

Table 11. Workforce ManagementThis section is available when MYOB Acumatica is integrated with MYOB Acumatica Workforce Management. It determines whether or not pay items will be available in the MYOB Acumatica Workforce Management system.
Element	Description
Available to Workforce Management	Tick this box if the pay item should be available as a pay type in MYOB Acumatica Workforce Management.
Require Attachment Upon Leave Request	This box is available for pay items with the "Income" type. Ticking this box indicates that any time associated with this pay item should be treated as a working day.

Table 12. Deductions SectionThis section contains properties that apply to deduction pay items.
Elements	Description
Reducing Balance Calculation	Tick this option to mark the deduction as a reducing balance deduction, i.e. a deduction where a regular amount is reduced from the employee's pay each pay run, until a set balance has been repaid. If this option is ticked, the Change Limit and Change Threshold options in the Action dropdown are disabled. Once a reducing balance deduction pay item has been added to one or more employees' pays, this option becomes disabled so that it cannot be unticked. See "Reducing Balance Deductions" for more information.
Allow Partial Deduction	This option determines how the system should behave when an employee's pay is not sufficient to allow this deduction to be made in full: If this option is ticked, then partial deductions of this pay item can be made, i.e. if the employee's pay is insufficient to make the full deduction, then the deduction amount will be the remaining balance of their pay. If this option is not ticked, then if the employee's pay is insufficient to make the full deduction, the deduction will not be made at all.
Deduction Category	Select a category for the deduction: Standard Deduction Child Support - the deduction is for child support payments, and will be subject to legislation that relates to child support. Attachment Order - the deduction is for District Court attachment orders (NZ only). Workplace Giving / Payroll Giving - the deduction is for workplace giving (AU) or payroll giving (NZ), i.e. making donations directly from an employee's pay to approved donee organisations. The deduction will be subject to legislation that relates to workplace/payroll giving. PAYG - the deduction is for making extra PAYG payments, in addition to the PAYG automatically calculated by the system. This option is available for Australian companies only. Net Pay Disbursement - the deduction is a net pay disbursement, i.e. a payment from the employee to the employer. These deductions are not processed as payments, i.e. they are not included in payment batches; rather, the funds are simply transferred to the appropriate General Ledger account.
Attachment Order Type	This dropdown is available if "Attachment Order" was selected for the Deduction Category. Select the type of attachment order: Court Fine WINZ Order Tax Arrears Other
Protected Earnings	Specify whether the deduction requires a threshold of protected earnings, i.e. a minimum amount that this deduction cannot reduced the employee's pay below. Choose from: None - no protected earnings threshold applies to the deduction Legislated - the deduction is subject to the threshold specified by the legislation that applies to the deduction, e.g. for child support deductions, the threshold is specified by the relevant child support legislation. Custom - the deduction is subject to the threshold specified by a custom protected earnings rule.
Protected Earnings Rule	If "Legislated" is selected for Protected Earnings, the legislated protected earnings threshold is displayed. If "Custom" is selected for Protected Earnings, you can specify the protected earnings rule to apply. Rules are created on the Protected Earnings Rules (MP.PP.21.70) form.

Table 13. Analysis SectionThis section specifies how the pay item should be recorded and accounted for.
Element	Description
General Ledger Purpose	Select a General Ledger Purpose for the pay item, which determines how it should behave when being posted to GL journals. A default GL Purpose can be specified for the pay item's type on the Pay Item Types (MP.PP.21.60) form.
Supplier ID	Some pay items, such as union fees or child support, are paid to a third-party supplier. For such items, specify the relevant Supplier account here.
Location	Select the supplier location to use in transactions for this pay item. The location can be overridden in employees' Standard Pays if necessary.
Payment Method	Select the payment method that specifies how payments will be made to the third-party supplier.
Cash Account	Select the cash account to use in transactions for this pay item. The account can be overridden in employees' Standard Pays if necessary.
Include Accrual in GL	For pay items that represent entitlement accruals, tick this option if the accrual should be included in General Ledger journals.

Table 14. Leave Loading SectionThis section is available for Australian companies only. It allows you to set up leave loading for Annual Leave pay items.
Element	Description
Autoload Leave Loading Pay Item in Current Pay	Tick this option to enable leave loading for the pay item. When this pay item is added to an employee's pay, a leave loading pay item will be added to their pay automatically.
Pay Item	Select the leave loading pay item that will be added to employees' pays when this item is added.

Table 15. Fringe Benefit Reporting SectionThis section contains settings that apply to fringe benefit pay items.
Element	Description
Apply grossed-up multiplier	Fringe benefit amounts can be entered into the system already grossed-up or at their face value, in which case they will need to be grossed up by MYOB Acumatica. Tick or clear this option to indicate whether the values for the pay item will need to be grossed-up by the system or not.
Fringe Benefits are exempt from Fringe Benefits Tax	Tick this option if the pay item applies to work that is exempt from Fringe Benefits Tax (FBT).

Table 16. Superannuation SectionThis section contains settings that apply to superannuation pay items.
Element	Description
Override legislated rates	This option is available for Australian companies only and only applies to employer superannuation contributions. By default, employer contributions use the legislated Superannuation Guarantee rate. Tick this box if you want to use a different rate.
Category	This option is available for Australian companies only. Select the category of contributions that the pay item represents. This is used by the superannuation fund to classify the various types of payment that they may receive. For employer contributions, the following categories are available: SG Superannuation Guarantee Contributions: Legislated compulsory Superannuation Guarantee (SG) contributions. This is the default option if the Override legislated rates box is unticked. AP Award/Productivity Contributions: In cases where Productivity/Award contributions need to be identified separately rather than incorporated in SG (to show meeting Union obligations) they can be reported here (otherwise will be included in SG contributions). VC Voluntary Contributions: RC Redundancy Contributions: Used for Redundancy funds. This is offered by certain Industry Funds. For employee contributions, the following categories are available: SS Salary Sacrifice: Super contributions deducted from total employee package before tax. PAYG tax is calculated on the employee’s package net of salary sacrifice. PC Personal Contributions: Additional super contributions deducted from the employee's after-tax income.
KiwiSaver/Other	These options are available for NZ companies only. Select the KiwiSaver option if the pay items relates to a contribution to a KiwiSaver fund, or select Other if the pay item relates to a non-KiwiSaver superannuation fund.
Defined Fund	This option is available for NZ companies only, and only applies to employer contributions where the Other option is selected. Tick this option if the superannuation fund that the pay item relates to is a Defined Fund.
Override legislated KiwiSaver Employer Super Contribution rate	This option is available for NZ companies only, and only applies to employer contributions where the KiwiSaver option is selected. Tick this if you want to be able to enter a contribution rate that differs from the legislated rates of 3%, 4%, 6%, 8% or 10%.

Membership Tab

This table displays details of all employees whose Standard Pays include the pay item.

Table 17. Table ToolbarThe table toolbar of this tab contains custom actions along with the standard actions. For descriptions of standard actions, see Table Toolbar.
Element	Description
Reset to Default	This button is active if the selected employee has overridden any of the pay item's details in their Standard Pay. Clicking it resets the pay item in the employee's Standard Pay to the defaults for this pay item, as specifiied on the Additional Info tab. Note: You must save the pay item for this change to take effect.

Table 18. Table Columns
Element	Description
Employee	The employee's unique ID code.
Status	The employee's current status: active or inactive.
Pay Group	The pay group that the employee's Standard Pay is for.
Supplier	The supplier specified for the pay item in the employee's Standard Pay.
Location	The supplier location specified for the pay item in the employee's Standard Pay.
Payment Method	The payment method specified for the pay item in the employee's Standard Pay.
Cash Account	The cash account specified for the pay item in the employee's Standard Pay.
Overridden	This column contains a tick if any of the pay item's properties have been overridden in the employee's Standard Pay.