How to Add Paytypes

Pay Types Overview

The Pay Types desktop is where pay type information is configured in OnTarget. Pay types define and control the way that employees or contractors get paid through OnTarget. With pay types, the parameters for tax handling, any overtime calculations, interaction with timesheets, pay rates, group rates (if applicable) and any linking with wages expense and general ledger are defined.

Search Pay Types

In order to search for pay types, click on “Search Pay Types”. This populates a search grid with various filters that can help with searching. Here, filters can be used to search by pay type description, tax handling, and pay type among others.

Add a Pay Type

In order to add a pay type, click on Add Pay Type. This opens the pay type configuration window.

1. Click on Payroll (expand)

2. Click on Pay Types

3. Click on the Add Pay Type button

4. Enter a Description for the pay type.

Note: This should be a description that is consistent with the type of payment to be made. For instance, if this pay type is going to be for training, the description could be entered as “Training”.
- Helpful Hint: It is recommended to set up a pay type for each of the billable service categories that are provided. The benefit to that is that after each payroll run you can get an overview of the wages paid per service. Pay type descriptions should also be indicative of any special tax handling, so that the users know how to apply the pay types correctly to staff based on the way individuals need to be taxed.

5. Select the Tax Handling. Note: If the pay type should be subject to tax, select “Subject to All Taxes”. If the pay type is not subject to tax, as in Mileage and Contractor Pay for example, select “Subject to None”.

6. Select the Pay Type. Note: This selection determines how OnTarget handles the processing and calculations for a particular pay type. For example, if the pay is based on an hourly wage, select the “Hourly Rate” pay type. This will require all time to be entered by start and end times. All time for billable services must be against a pay type with an hourly pay type setting as this is the mechanism for importing time into payroll.

Helpful Hint: Salaried staff will most likely need a pay type with the Salary setting. With this pay type setting, start/end times are not entered, rather a unit of “1” is entered against the pay type in which the associated salary amount per paycheck is configured. The “Mileage Reimbursement” pay type allows the number of miles to be reimbursed to be entered against the pay type.

7. Enter a Default Amount.

Note: This is a required field.
- Helpful Hint: When a default amount is entered, it will automatically pull to an employee record when the pay type is added. If there is no default amount associated with a particular pay type, enter a default amount of “0".

8. Check the “Pay Overtime” checkbox for each pay type that is eligible for overtime.

Note: “Include in Overtime Calculation” instructs the system to include the hours against the pay type in the overtime calculations. This should be checked if the time worked for the pay type should be included in the overall eligible for overtime calculations.

9. Check the “Allow Manual Timesheet Entry” checkbox if you want to allow timesheet users to be able to manually add a pay type to their timesheet.

Helpful Hint: This is mostly used to ensure that time against billable services don’t get added manually to a timesheet; rather, the time is imported directly from the note or clinical documentation. Typically, only pay types that would capture non-billable time are checked here.

10. Check the “Group Service Rates” checkbox if you want to allow for the entry of multiple rates of pay based on the number of clients served within a group/service setting.

11. Add any default ledger expense account information.

Note: Select the associated Wage Expense account as applicable along with any other tax related accounts.
- Helpful Hint: Accounts are setup by going to Configure→List Configuration→Global→Chart of Accounts. This is the integration of payroll wages to General Ledger. Every time paychecks are cut, the wages are reported to the GL automatically through this setup.

12. Click on the Save button.

Enter a Description

Select the Tax Handling

Select the Pay Type

Enter the Default Amount & Overtime

Select the GL Expense Acct. Info.

Click on the Save button.

Add a Pay Type to an Employee Record

Once the pay types have been configured, then the corresponding pay types will need to be added to each employee. This is done at the employee record. For more details see the course “Adding an Employee: Pay Types Tab”.

1. With the employee record open, click on the Pay Types tab

2. Click on the Add button

3. Select the Business Pay Type from the drop-down.

Note: Type auto-populates based on how the pay type was configured at the Pay Types desktop

4. Select the associated cost center the employee will be working the time against the pay type.

Note: if an employee works in multiple cost centers the pay type can be added multiple times to reflect each cost center worked. This is important in reporting payroll wages to the GL by cost center correctly.

5. If the pay type that you are entering is associated with a billable service and a specific rate is associated with services rendered for a particular client, select a corresponding client from the “Client” drop-down.

Note: If the employee will work with multiple clients at the same rate, there is not a need to add the client.

6. Select a service.

Note: Select a service only if the pay type is associated with a billable service, this is very important for the import of notes/timesheets to payroll as well as GL reporting by service.

7. Enter the pay rate. Enter an overtime amount if applicable.

Note: You only need to enter a pay rate if a default amount was not set at the pay type configuration (or you need to change a default pay rate). If the “Group Service Rates” checkbox was selected for the pay type selected, the rate here is read-only and must be managed by clicking on the Group Service Rates icon.

8. Click the +/- button to add a date range and rate for a pay type (if applicable).