Creating an allowance to pay a percentage of an employee's ordinary rate (New Zealand)
Allowances are additional payments to an employees Standard Pay. The setup for how an allowance is to be calculated is influenced by what the allowance is being paid for.
MYOB Exo Payroll deals with allowances through the Allowance's area. Allowances can deal with multiple situations through the settings of the allowances.
When a percentage of an employee's Ordinary Rate is to be paid in a pay, an allowance can be used that has had the calculation method set to Specific Hours.
For example: If the employee's hourly rate is $20.00, hours work per week is 40 and 2% of the hourly rate is to be paid in the allowance then:
2% x $20.00 = 0.40 cents
0.40 cents x 40 hours = $16.00
$16.00 is the amount to be paid to the employee in the allowance.
Paying an allowance
This allowance can now be added to an employee for payment.
- If the allowance is to be processed in every pay period then it should be added to the employee's Standard Pay. The allowance will then appear in each pay period processed.
- If the allowance is to be processed in specific pay periods as required rather than in every pay period, add the allowance to the pay being processed when required.
Need more help? You can open the online help by pressing F1 on your keyboard while in your software.
You can also find more help resources on the MYOB Exo Employer Services Education Centre for Australia or New Zealand.