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Setting up an employee who gets paid monthly


To set up an employee for monthly pay, you first need to know the Days per Year you've specified in Payroll. To check this, go to the Tools menu and choose Options then click the General tab. Take note of the value you've specified in the Days per Year field.

Based on your Days per Year, you can then use the table below to determine the employee's Normal rate and the Ordinary Time pay code quantity - you'll need these values when completing the steps below.

If your Days per Year is...Use this calculation to determine the employee's 'Normal rate'...Use this value for the Ordinary Time pay code quantity...
261Employee's annual salary/12/21.7521.75
260.71429Employee's annual salary/12/21.7261921.73*
260Employee's annual salary/12/21.6666621.67*

*Note that this is a rounded value.


If your Days per Year is 261 and your employee's annual salary is $60,000:

  • The Normal rate is calculated as 60,000/12/21.75 = 229.88506
  • The Ordinary Time (ORD) pay code quantity = 21.75

Now that you have your employee's normal rate and ordinary time values, you're ready to enter those values into Payroll:


Entering employee Normal rate and Ordinary time
  1. Go to the Maintenance command centre and click Maintain Employees.
  2. Click Select Employee.
  3. Click the applicable employee then click OK.
  4. Click the Employment Details tab.
  5. In the per field (next to the Normal rate field), select Day.
  6. In the Normal rate field, enter the value determined using the calculation in the table above.
  7. Click the Pay Defaults/Totals tab.
  8. In the Quantity column for the ORD (Ordinary Time) pay code, enter the value from the 3rd column of the table above. You will then see that this calculates the correct monthly rate in the Total field of Ordinary Time.
  9. For salaried employees only: Click the Leave Details tab.
  10. Enter the employee's Normal Hours per Week.
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