Other Payment Types
>> 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
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