Payroll Setup > Company Setup > Custom Items

SimplePay provides a number of regular and once-off system items, and we strongly advise you to use these wherever possible as they often have special tax treatment and / or reporting requirements.

However, if you do need to create a custom item, you can do so by going to Settings > Custom Items > Add and selecting the type of item you need.

Custom Item Setup

All custom items require a Name, which we generally recommend you make as generic as possible so that it can be used for all employees. For example, “Telephone Allowance” is a better name than “John’s Telephone Allowance – November 2016”.

You will also need to select an Input Type, which tells the system how the item will be added to and used on payslips. The following options are available but not all are applicable to every item type:

    • Fixed amount – regular item, which will always have the same amount, irrespective of period or employee
    • Enter Amount Per Employee – regular item, which will be different for each employee
    • Different on every payslip – regular item, which will be different for each employee for each period; the amount will be entered under Payslip Inputs each month
    • Once-off for specified payslips once-off item
    • Hourly rate * factor * hours – regular item, which will calculate an amount based on the hourly rate calculated by SimplePay, the factor entered here and the hours entered each month under Payslip Inputs
    • Custom rate * quantity – regular item, which will calculate the amount based on the rate entered here and the quantity entered under Payslip Inputs
      • A different rate can also be specified for each employee by checking the relevant box
    • % of income – regular item, which calculates the amount based on the percentage entered here and the relevant employee’s income for the period
    • Formula – allows you to create custom formulas. More information about creating formulas is available here.
  • Monthly (for non-monthly employees) – regular item, which will be taken into account once a month (on the first payslip) for weekly, fortnightly and twice a month employees

In addition to having a Name and Input Type entered, income items can be marked as PRSI Exempt or USC Exempt if applicable.

Hours Worked Factor

If you create custom income and allowance items and select the Input Type as “Hourly rate * factor * hours” or “Custom rate * quantity”, you can also enter the Hours worked factor. As indicated on the screen, it should be entered as 1 for most cases. This input basically tells the system how many hours the quantity entered represents. This would be especially relevant if leave accrual is based on the number of hours worked.

    • For example, if you set up a custom item to record Sunday hours, you’d enter 1 as the Hours worked factor. The system will then see anything input for that item as hours. Therefore, if you entered 7 as the payslip input for this custom item, that would count as 7 x 1 = 7 hours worked for leave accrual purposes.
    • However, if the custom item is being used to pay employees a daily rate, for example, the Hours worked factor should equal the number of hours the employee works in a day, e.g. 8. If they entered 3 (days) as the payslip input for this custom item, the system would add 3 x 8 = 24 hours to their hours worked for leave accrual purposes.
  • Some items should have 0 as the Hours worked factor. An example would be a Night Shift Allowance, where the employees are already paid for those hours worked as part of their normal hours. In other words, having the Hours worked factor as 0 would prevent these hours from being double-counted for leave accrual purposes.

More information about leave accrual based on hours worked can be found in the following article:

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