Override settings for a payroll code

You might have occasional or rare situations when you want to override the settings for a payroll code. This topic describes two different instances when you might need to override the settings for the payroll code:

  • An employee performs two activities (job roles) and only the pay associated with each separate activity is pensionable for a particular, different pension scheme. This means you must specify which pension schemes apply to which activities for the basic pay or salary payroll code (Example 1).
  • Perhaps because some long-serving employees have different employment terms and conditions from other employees, in some cases payments can be part of  an employee’s pensionable pay when they normally would not be (for example, the flat rate for overtime hours). This means the payroll code for flat rate for overtime is not normally pensionable, but you can override the payroll code settings for specific employees (Example 2).

Example 1

To specify only the pay associated with each separate activity is pensionable for a particular, different pension scheme:

  1. Search for and select an employee.
  2. Click HR Record > Payroll Details > Fixed Payments/Deductions. The Fixed Payments/Deductions window is displayed.
  3. If fixed payments are set up for the salary or basic pay for each activity, select one and click Edit to edit the details. (If the payments are not set up for the employee, click New to create each payment.) The Fixed Payment/Deduction window is displayed.
  4. In Payment/Deduction, click and select the payroll code for basic pay or salary for the activity. The description associated with the payroll code is displayed.
  5. In Type, select Automatic. This setting indicates that the system automatically puts the payment transaction in the working file.
  6. In Pension Status, select Selected Schemes from the drop-down list. In the list of pension schemes, identify the pension scheme by selecting the Attach check box next to the description of the scheme. The pension schemes listed are only those you have attached to the employee in their pension records (and might not be all the pension schemes set up in the system).
  7. In Activity, select the activity to which the selected payroll code and pension scheme applies. (When you select an activity and select only one pension scheme in the list under Pension Status, you can use Pension to update the selected employee’s pension record.)
  8. Click Save to save the record.
  9. Click Close to close the Fixed Payments/Deductions window.

Repeat the steps in the procedure above for each activity and associated pension scheme. When an employee has two or more activities and you want to associate the salaries for each activity with different pension schemes, you must use different payroll codes for the salaries for the activities. For example, if for activity 1 you use a salary payroll code of SAL and assign pension scheme A, you must use another salary code, such as SAL2, for activity 2 and pension scheme 2.

Example 2

To override the settings for a payroll code that represents a payment that is not pensionable:

  1. Search for and select an employee.
  2. Click HR Record > Payroll Details > Fixed Payments/Deductions. The Fixed Payments/Deductions window is displayed.
  3. Select the payroll code (such as the flat rate for overtime) and click Edit to edit the details. (If the payment is not set up for the employee, click the
  4. In Type, select Select From from the drop-down list. This setting indicates the details are for information only. When you select Select From, the system does not put this payment in the working file, so you must add it to the working file for the pay period.
  5. Under Defaults, in Units, type the number of units. For example, if the employee works nine hours overtime, type 9. The Rate field should display the default rate set up in Default Rate for the payroll code. If the default rate is £20 per hour, Rate displays 20, and Value field displays the total payment.
  6. In Pension Status, select Selected Schemes and select Attach to identify each selected pension scheme, or select All Schemes. The pension schemes listed are only those you have attached to the employee in their pension records (and might not be all the pension schemes set up in the system).
  7. Click Save to save the record. A message is displayed to inform you that the transaction is not put into the working file.
  8. Click Close to close the Working File window.

To ensure the employee is paid the overtime, add the details of the overtime to the working file.

To add the transaction to the working file for the current pay period:

  1. For the selected employee, click HR Record > Payroll Details > Working File. The Working File window is displayed.
  2. Click New to add the transaction for overtime to the working file. The Working File window is displayed. Employee Reference displays the reference for the selected employee and the employee’s name.
  3. In Payment/Deduction, click and select the payroll code for the flat rate for overtime.
  4. Click in the Units field. (In Status, PAY is displayed as the default, and the Date field displays today’s date.)
  5. In Units, type the number of hours for the overtime — type 9, for example, and click in the Rate field. The Rate field should display the default rate set up in Default Rate for the payroll code, and Value field displays the total payment.
  6. If the  Gen Code field is displayed, click and select the general ledger code. This field is displayed only when:
    • The system is configured to integrate with a general ledger
    • The General Ledger check box for the payroll code is selected
  7. Click Save to save the record.
  8. Click Close to close the Working File window.