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Add Pay Code

Summary

In the Payroll section of Plumm, you can add new pay codes for different locations. These pay codes can represent additions or deductions in employee salaries and can be subject to specific payroll categories like National Insurance, Tax, Pension, or Attachment Orders.

In this article

  •  Before you begin
  • Step 1: Access the Payroll Page
  • Step 2: Add a New Pay Code
  • Frequently Asked Questions (FAQ)

Before you begin

 Ensure that you have access to the Payroll section in your dashboard and the necessary permissions to manage pay codes. You must have an active Plumm account with the appropriate access rights for pay code management.

Step 1: Access the Money Page

  1. Navigate to the Money section in your dashboard.
  2. You will see a list of locations associated with your organization.
  3. Click on any location to view its associated payroll details.

Step 2: Add a New Pay Code

  1. Once you are in the location's Pay Code section, click on the Add Pay Code button.
  2. Fill in the following details for the new pay code:
    • Pay Code:
      1. Enter a unique identifier for the pay code (e.g., "BONUS" for bonuses).
    • Name:
      1. Enter a descriptive name for the pay code (e.g., "End-of-Year Bonus").
    • Type:
      1. Select the type of pay code:
        • Addition: For positive additions to an employee's pay (e.g., bonuses, overtime).
        • Deduction: For amounts to be deducted from an employee's pay (e.g., loan repayments, tax).
    • Subject To:
      1. Choose which categories the pay code is subject to:
        • National Insurance
        • Tax
        • Pension
        • Attachment Order
    • Accounting Code:
      1. Enter the relevant accounting code associated with the pay code. This helps in tracking pay-related transactions in the company’s accounting system.
    • Accounting Code Name:
      1. Provide the name or description of the accounting code (e.g., "Payroll Expenses").
  3. After filling in the required details, click Save to add the new pay code.

Frequently Asked Questions (FAQ)

1. What is the difference between Addition and Deduction pay codes?

  • Addition: Used for pay codes that add to the employee’s earnings (e.g., bonuses, overtime).
  • Deduction: Used for pay codes that subtract from the employee’s earnings (e.g., loan repayment, tax deductions).

2 .What does 'Subject To' mean?

The 'Subject To' field determines whether the pay code will be calculated based on specific payroll categories like National Insurance, Tax, Pension, or Attachment Order. For example, if a bonus is subject to tax, the system will apply the tax rate to the bonus amount.

 

3. Can I add multiple subjects for a single pay code?

Yes, you can select multiple subjects such as National Insurance, Tax, and Pension if the pay code is applicable to more than one category.

 

4. How do I know what to enter for the Accounting Code?

 The Accounting Code is specific to your company’s accounting system. You should enter the code that corresponds to the category in your accounting setup, such as “Payroll Expenses” or any other relevant identifier.
 
 

5.Can I edit or delete a pay code after it's created?

 Yes, you can edit or delete a pay code by clicking the Edit or Delete button next to the pay code, depending on the changes needed.