>> Payroll >Settings >Other Payment Types

ZipHR provides the following Other Payment Types to group payments.

• Fixed Allowances - regular allowances in fixed amounts that are prorated based on hire/termination date. Note that this OP will be added as part of Basic Pay on the 1601C and 2316 report. 
• Allowances - allowances that are not prorated based on hire/termination date. Example: meal, transport, mobile allowances
• Commissions - regular additional earnings in variable amounts. Example: sales commissions, KPI incentives
• Bonus - periodic bonus payments. Example: annual bonus, performance bonus
• Attendance Policy - awards/penalties for attendance. Automated based on Attendance Policy Settings
• Wage Adjustment - retroactive payroll adjustments. Example: retroactive wage, attendance, bonus
• Termination - separation payments. Example: severance pay, long service pay
• Contribution Gross Up - employee contributions borne by employer. Automated for Contribution Gross-up employees
• De Minimus - regular payments considered as insignificant for tax. Example: meal subsidies
• Non-taxable - payments that are not wage related or not subject to tax. Example: pension payments
• Expenses - employee expense reimbursements
• Loans - employee loan amounts. Example: principal, interest and fees
• Encashment - payments converted to cash. Example: leave conversion
• Union Dues - union-related fees that are included in the tax reports
• Others - Open for any other purpose

You may configure your Other Payment Types to control how they are treated from a wage, tax and contributions perspective.

• Details - define what you will use each Other Payment Type for
• Tax Status
  • Regular - assessed with normal wages and earnings
  • Bonus - bonus tax rules applied, as per government regulations
  • Termination - termination tax rules applied, as per government regulations
  • Pension - pension tax rules applied, as per government regulations
  • None - no tax applied
  • None Excluded - no tax applied, and not included to tax reports
• Fixed Wage Basis - for any other payments that are of a fixed and reoccurring basis. Fixed Wage Basis is required to calculate certain contribution, bonus or termination payments in select countries
• Gross Wage Basis - for any other payments that are considered as part of regular wages. Gross Wages are commonly used to calculate certain contribution, bonus or termination payments in select countries
• Prorated - if payslip is prorated due to hire/termination during the period, determines if reoccurring other payments will also be prorated
  • Prorate option is locked within system and displayed here for informational purposes only
  • Any other payments manually added directly to a payslip will never be automatically prorated
• Tax Gross Up - payment will be tax grossed up if profile Tax Gross Up settings are enabled.
• Tardy Deduction - determines if the other payment will also be calculated against tardy
• Contributions - determines if other payment will be included to calculation of specific contributions