Paying your employees > Creating payroll categories
Creating payroll categories
An employee’s pay is made up of many components, such as hourly pay, overtime, deductions, taxes and so on. In AccountEdge software, these components are called payroll categories, and they are grouped into five types: wages, entitlements, deductions, employer expenses and taxes.
Wages
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All amounts paid to an employee for labour or services rendered on an hourly, salary or other basis.
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Amounts withheld by the employer and paid to other organisations on behalf of the employee, for example, union fees.
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Employer expenses
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Employer-paid benefits, for example, NI employer contributions.
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Amounts withheld by the employer, such as PAYE Income Tax.
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A default list of payroll categories is generated when you create your company file. You may want to review these categories and tailor them to suit your business needs.