Creating local pay categories

Pay categories enable businesses to define how a pay component is calculated in payroll.

We provide all businesses with pre-configured global pay categories. As a platform or payroll admin, you can simply add (enable) them in your business Payroll settings to use them. For detailed information, see Adding global pay categories.

You cannot edit the definition of global pay categories. However, for specific requirements or to customize a global pay category's definition, you can create pay categories local to your business. You can create and configure both V1 and V2 pay categories yourself.

For more information about each of these pay category types, see About pay categories.

This article provides you with the following information:

• Creating V1 local pay categories
• Creating V2 local pay categories
• Overriding a global pay category

Creating V1 local pay categories

As a payroll or platform admin, you can create V1 pay categories local to your business. To create a V1 local pay category, do the following:

1. In the sidebar, in the Business section, click Settings.

   

2. Go to Payroll > Pay categories.

3. Click + Add pay category > Add New Local Pay Category.

   

4. Enable the Use Legacy Pay Category toggle button.

   

5. Enter the following details:

   1. Enter a Pay category name.

   2. (Optional) Select a Pay category label from the drop-down menu.

   3. In Fixed/Variable, select an option depending on whether you want to categorize the pay component as fixed or variable.

   4. In Addition/Deduction, select an option depending on whether you want to set up the payment as a salary addition or deduction.

   5. In Optional/Mandatory, select an option depending on whether you want to set up an optional or mandatory payment.

   6. (Optional) If you bank with HSBC, you can enter your HSBC payment purpose code.

   7. (Optional) If you use a General Ledger (GL) as part of your finance and accounting processes, enter the following details as required:

      1. Select a Balance sheet code from the drop-down menu.

      2. Select a Profit and loss code from the drop-down menu.

      3. Select a currency from the Select currency code drop-down menu.

   See the following example:

   

6. Click Save pay category.

Your new local V1 pay category is saved and enabled for your business. The pay category is automatically considered in your payroll calculations.

Creating V2 local pay categories

As a payroll or platform admin, you can create V2 pay categories local to your business. To create a V2 local pay category, do the following:

1. In the sidebar, in the Business section, click Settings.

   

2. Go to Payroll > Pay categories.

3. Click + Add pay category > Add New Local Pay Category.

   

4. Disable the Use Legacy Pay Category toggle button.

   

5. Enter the following details:

   1. Enter a Pay category name.

   2. (Optional) Select a Pay category label from the drop-down menu.

   3. In Fixed/Variable, select an option depending on whether you want to categorize the pay component as fixed or variable.

   4. In Addition/Deduction, select an option depending on whether you want to set up the payment as a salary addition or deduction.

   5. In Optional/Mandatory, select an option depending on whether you want to set up an optional or mandatory payment.

   6. (Optional) If you bank with HSBC, you can enter your HSBC payment purpose code.

   7. (Optional) If you use a General Ledger (GL) as part of your finance and accounting processes, enter the following details as required:

      1. Select a Balance sheet code from the drop-down menu.

      2. Select a Profit and loss code from the drop-down menu.

      3. Select a currency from the Select currency code drop-down menu.

   8. Enter scripts to implement the cases and conditions of different payment amount calculations in the following fields:

      Field	Description
      Apply function script	A script that defines the criteria for selecting the employees to whom the pay category applies For example, you can define conditions to include this pay category in payroll calculations only for employees of a specific nationality, work location, payroll group, or more.
      Calculate Script	A script that defines how the pay amount is calculated (after applying the conditions for selecting employees). You can also specify how the calculated amount is passed on to payroll. In the following example, the calculated amount is stored in the result variable.

   9. (Optional) Select one or multiple check boxes of the following to add the corresponding tag to the pay component:

      • End of Service

      • Employer Pays

      • Expense Reimbursement

      Tags classify pay categories and are used by Yomly when building reports.

   See the following example:

   

6. Click Save pay category.

Your new local V2 pay category is saved and enabled for your business. The pay category is automatically considered in your payroll calculations.

Overriding a global pay category

As global pay categories are defined at the global level and apply to all businesses, you cannot edit their definitions. However, as a payroll or platform admin, you can override their definitions locally for your business. This enables you to customize pay categories to meet the specific requirements of your organization.

To override a global pay category's definition with that of a local one, do the following:

1. In the sidebar, in the Business section, click Settings.

   

2. Go to Payroll > Pay categories.

3. Click + Add pay category > Add New Local Pay Category.

   

4. Depending on the type of pay category you want to define, enable or disable the Use Legacy Pay Category toggle button.

5. Select the Override global paycategory check box.

   

6. In Pay category name, enter the name of the global pay category that you want to override.

7. Enter other details of the pay category based on your requirements.

8. Click Save pay category.

Your new local pay category is saved and enabled for your business. The new pay category overrides the global one with the same name.