Pay items Flashcards
What is a pay item?
Pay items are different types of payments or deductions included on a payslip
what are the 6 types of items in payroll
Deductions (tax)
Reimbursements
Kiwisaver/ superannuation
earnings (pay)
leave
statutory deductions
What are the Earnings Categories currently available in payroll?
Regular Earnings,
Other Gross Earnings,
Withholding Income
Discretionary Payments.
What are the regular earning type used for?
the hours that a staff member typically works.
What is the Gross Earnings type used for in payroll?
to add rates for overtime etc.
What is the With holding income type used for in payroll?
payments made to contractors and you will need to select the rate type and then either the amount or the type of units and the rate per unit.
Discretionary Payments would be used for?
a one off payment/when a one of payment is used
The most common types of reimbursements to employees are ?
Milage and meals
The Superannuation Category requires you to select either Complying or Other. Complying Funds must be what?
must be registered with the New Zealand Financial Markets Authority (FMA).
To search for a Superannuation scheme where do you look?
IRD website or companies office website
Do you pay tax on Payroll Giving? i.e giving a portion of your pay to an approved charity?
No, you qualify for a tax credit
If you make a regular deduction from pay, i.e payroll gicing or other deductions the Standard Amount Category should only have a value entered when it is the…what?
the same amount for all employees every time, otherwise, leave it blank and
Pathway to add a new employee into xero is?
Payroll menu>employees>add new
What does Xero do if you select ESTIMATE OPENING BALANCES?
Xero will calculate pay entitlements using the start date of employee, will show you last 12 months or from when ever staff stated if under 12 months
Can ESTIMATED BALANCES be changed to accurately reflect entitlements?
Yes, Xero will calculate entitlements and you can alter them before saving
what are the four default leave types
Holiday pay
annual leave
alternative holidays
sick leave
what is the minimum percentage of holiday pay?
8% gross earnings
what is the minimum annual leave?
four weeks
what is the minimum and maximum sick leave per year?
10 days minimum and 20 days maximum
Whats the maximum number of sick leave days you can accumulate before you need to use them?
20 days
How many sick days are you entitled to each year (starting after 6 months of employment)
10 days per year, can roll over to the next year
How many bank accounts can an employees pay be split between? or how many bank accounts can you add to an employees payroll file?
up to 4 bank accounts
is it possible to select Holiday pay as the leave request type?
No, so if an employee has a leave balance but noannualleave then when the annual leave request is created this will create a negativeannualleave balance. Once the employee’s anniversary date occurs the Holiday pay will convert to Annual leave and the negative annual leave is deducted from this.
When leave is approved, when does xero update the leave due amount?
One the payment has been made, not before
When leave is taken over a period that includes a public holiday what does Xero do?
the public holiday is taken into account and automatically excluded from the calculation
Will xero disallow a leave request when there is no leave allowance available
No, it will add it as a minus amount i.e -4 days
What is Xero Me?
An app Employees can use Xero Me to check pay history, submit timesheets, request leave and manage leave requests from within the app. They can also view payslips and save them as PDFs, check leave balances and update personal details.
