Use 'Earnings - Amount' to setup a Transaction Code to process irregular taxable amounts to employees.

Set the 'Amount' to be paid or enter the amount whilst processing if 'Allow Manual Editing' has been ticked.  

To create an 'Earnings - Amount' Transaction Code:

- Go to the 'Edit' , 'Transaction Codes' menu options.

- Click 'Insert' and select the Transaction Category 'Earnings - Amount'.

- Accept/ Change the default 'Code'.  This is a unique identifier for the Transaction Code and the numbers are designed to group similar types of transaction together.

- Enter an appropriate 'Description'.

- 'Contribution is' : select whether the Amount being process is a Percentage or an amount.

- If amount processed are to accumulate a balance or reduce from a set opening balance select either 'Reduce Balances', or 'Add Balances'

- Enter the 'Employee Amount' and 'Employer Amount' if the the Contribution has been set to 'Amount'.  If the amount varies leave blank and place a tick against 'Manual Edit' which allows the entry of an amount when processing.

- Enter the 'Percentage' for the Employee and the Employer if the the Contribution has been set to 'Percentage'.  If the amount varies leave blank and place a tick against 'Manual Edit' which allows the entry of an amount when processing.

- Select the 'General Ledger' Codes to be entered onto journal reports and exports for the Employee and Employer.

- Select 'Base On' if the amount is a percentage of the rate of pay for the Grade, Internal Grade or Employee Mater Rate of Pay.

- Set the 'Duration' - whether the transaction is to come through for a 'Single', 'Multiple' or 'Indefinite' number of periods.

- Set 'Manual Edit' if you would like to be able to enter, or change, the amount of the Allowance when processing.

- Set the 'P6 Field' for year end ITF16 export.

- Set the 'Default Currency' that this transaction code will be paid in, the currency that the Earning will paid in on the payslip and used in the calculation of PAYE.

- Dependencies -

- Click 'Ok' to save the new Transaction Code.

Dependencies

After pressing the 'OK' button and saving the Transaction Code, if you re-open the Transaction Code you will notice that a 'Dependencies' button is now displayed at the bottom of the screen.  It is now possible to link this Transaction Code to other Transaction Codes and have computations done to produce a result to be used.

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Use 'Earnings - Amount (Non Taxable)' to setup a Transaction Code to process irregular, non taxable, amounts to employees.  There are very few instances where an employer would be able to give an employee a non-taxable amount.  In the most part all amounts paid by an employer to an employee are taxable.

To create an 'Earnings - Amount (Non Taxable)' Transaction Code:

- Go to the 'Edit' , 'Transaction Codes' menu options.

- Click 'Insert' and select the Transaction Category 'Earnings - Amount'.

- Accept/ Change the default 'Code'.  This is a unique identifier for the Transaction Code and the numbers are designed to group similar types of transaction together.

- Enter an appropriate 'Description'.

- 'Contribution is' : select whether the Amount being process is a Percentage or an Amount.

- If the amount processed is to accumulate a balance or reduce it from a set opening balance select either 'Reduce Balances', or 'Add Balances'

- Enter the 'Employee Amount' and 'Employer Amount' if the the Contribution has been set to 'Amount'.  If the amount varies leave blank and place a tick against 'Manual Edit' which allows the entry of an amount when processing.

- Enter the 'Percentage' for the Employee and the Employer if the the Contribution has been set to 'Percentage'.  If the amount varies leave blank and place a tick against 'Manual Edit' which allows the entry of an amount when processing.

- Select the 'General Ledger' Codes to be entered onto journal reports and exports for the Employee and Employer.

- Select 'Base On' if the amount is a percentage of the rate of pay for the Grade, Internal Grade or Employee Mater Rate of Pay.

- Set the 'Duration' - whether the transaction is to come through for a 'Single', 'Multiple' or 'Indefinite' number of periods.

- Set 'Manual Edit' if you would like to be able to enter, or change, the amount of the Allowance when processing.

- Set the 'P6 Field' for year end ITF16 export.

- Set the 'Default Currency'.  The currency that the Earning will paid in on the payslip and used in the calculation of PAYE.

- Click 'Ok' to save the new Transaction Code.

- Dependencies: This Transaction Code can be based on a percentage, amount or the number of units stated in one or more dependent Transaction Codes.

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Use 'Earnings - Basic' to setup a Transaction Code to process Basic Pay for an employee.

The basic Rate of Pay for each employee is set up in the employee Masterfile.   It is possible to Base the Rate of Pay on the Rate entered into the Employee Master, the employee Internal Grade Rate or the employee NEC Grade Rate.  This Transaction Code is often setup to 'Insert Automatically' ie. to come through as a standard Transaction Code when a new employee is engaged and then to come through 'Indefinitely' each period thereafter.

Use the 'Automatic Insert Rules' to specifiy that the 'Insert Automatically' only applies to Permanent employees.

To create an 'Earnings - Basic' Transaction Code:

     Click to play

To create an 'Earnings - Basic' Transaction Code:

- Go to the 'Edit' , 'Transaction Codes' menu options.

- Click 'Insert' and select the Transaction Category  'Earnings - Basic'.

- Accept/ Change the default 'Code'.  This is a unique identifier for the Transaction Code and the numbers are designed to group similar types of transaction together.

- Enter an appropriate 'Description'.

- Select the 'General Ledger' Code to be entered onto journal reports and exports.

- Set the 'P6 Field' for year end ITF16 export.

- Tick 'Insert Automatically' to have the Transaction Code included automatically on new employee's payslips.

- Set the 'Default Currency'.  The currency that the Earning will paid in on the payslip and used in the calculation of PAYE.

- Click 'Ok' to save the new Transaction Code.

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Use 'Earnings - Bonus' to setup a Transaction Code to process annual bonuses that are eligible for the annual bonus tax free amount allowed.  Bonuses received regularly, such as production bonuses, should not be processed using this Transaction Type because they should not enjoy the tax free element and the fact that these amounts should be handled differently in the FDS calculation where income is projected.

To create an 'Earnings - Bonus' Transaction Code:

- Go to the 'Edit' , 'Transaction Codes' menu options.

- Click 'Insert' and select the Transaction Category 'Earnings - Bonus'.

- Accept/ Change the default 'Code'.  This is a unique identifier for the Transaction Code and the numbers are designed to group similar types of transaction together.

- Enter an appropriate 'Description'.

- Check that the 'Tax Free Bonus' parameters that have come through from the Tax setup parameters are current.

- Select the 'General Ledger' Code to be entered onto journal reports and exports.

- Select 'Base On' if the amount is a percentage of the rate of pay for the Grade, Internal Grade or Employee Mater Rate of Pay.

- If the bonus amount varies leave the percentage blank and place a tick against 'Manual Edit' which allows the entry of an amount when processing.

- Set the 'Duration' - whether the transaction is to come through for a 'Single', 'Multiple' or 'Indefinite' number of periods.

- Set the 'P6 Field' for year end ITF16 export.

- Set the 'Default Currency'.  The currency that the Earning will paid in on the payslip and used in the calculation of PAYE.

- Click 'Ok' to save the new Transaction Code.

The amount of the bonus is normally entered whilst processing but where the bonus is based as a percentage of basic the amount comes through automatically.

Dependencies: This Transaction Code can be based on a percentage, amount or the number of units stated in one or more dependent Transaction Codes.

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Payment of a lump sum spread over a specified number of periods at a user defined amount per period.

To create an 'Earnings - Deferred' Transaction Code:

- Go to the 'Edit' , 'Transaction Codes' menu options.

- Click 'Insert' and select the Transaction Category 'Earnings - Deferred'.

- Accept/ Change the default 'Code'.  This is a unique identifier for the Transaction Code and the numbers are designed to group similar types of transaction together.

- Enter an appropriate 'Description'.

- Select the 'General Ledger' Code to be entered onto journal reports and exports.

- Set the 'P6 Field' for year end ITF16 export.

- Set the 'Default Currency'.  The currency that the Earning will paid in on the payslip and used in the calculation of PAYE.

- Click 'Ok' to save the new Transaction Code.

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Use 'Earnings - Gratuity' to setup a Transaction Code to process Gratuities.  When processing enter the amount of the gratuity.

To set up a Gratuity Transaction Code:

     Click to play

To create an 'Earnings - Gratuity' Transaction Code:

- Go to the 'Edit' , 'Transaction Codes' menu options.

- Click 'Insert' and select the Transaction Category 'Earnings - Gratuity'.

- Accept/ Change the default 'Code'.  This is a unique identifier for the Transaction Code and the numbers are designed to group similar types of transaction together.

- Enter an appropriate 'Description'.

- Select the 'General Ledger' Code to be entered onto journal reports and exports.

- Set the 'Duration' - whether the transaction is to come through for a 'Single', 'Multiple' or 'Indefinite' number of periods.

- Set the 'P6 Field' for year end ITF16 export.

- Set the 'Default Currency'.  The currency that the Earning will paid in on the payslip and used in the calculation of PAYE.

- Click 'Ok' to save the new Transaction Code.

The amount of the gratuity to be paid would depend on the NEC which the employee falls under, the rate of pay and the number of years service.

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Use 'Earnings - Overtime (Irregular)'  to setup a Transaction Code to process overtime amounts paid from time to time.  Irregular overtime is added in the total of annual income in the FDS tax calculation but is not projected.

To create an 'Earnings - Overtime (Irregular)' Transaction Code:

     Click to play

- Go to the 'Edit' , 'Transaction Codes' menu options.

- Click 'Insert' and select the Transaction Category 'Earnings - Overtime (Irregular)'.

- Accept/ Change the default 'Code'.  This is a unique identifier for the Transaction Code and the numbers are designed to group similar types of transaction together.

- Enter an appropriate 'Description'.

- Select the 'General Ledger' Code to be entered onto journal reports and exports.

- Select the 'Unit Type' whether the overtime will be processed in hours, days or periods.

- Enter the 'Rate', or the factor to be applied to the hours e.g. overtime at the rate of time and a half would be entered as 1.5.

- Tick 'Previous Rate' if the overtime is to be based on the previous rate of pay.  Leave unchecked to have the current rate applied.

- Set the 'Duration' - whether the transaction is to come through for a 'Single', 'Multiple' or 'Indefinite' number of periods.

- Set the 'P6 Field' for year end ITF16 export.

- Set the 'Default Currency'.  The currency that the Earning will paid in on the payslip and used in the calculation of PAYE.

- Click 'Ok' to save the new Transaction Code.

When processing the transaction enter the number of hours (or days) worked.  Belina PayrollHR will then automatically calculate the value of the overtime in hours or days as required:

      Hours/ (days) worked        x        Calculated rate of pay        x        'Rate' (e.g. 1.5 for time and a half and 2 for double time)

Dependencies: This Transaction Code can be based on a percentage, amount or the number of units stated in one or more dependent Transaction Codes.

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Use 'Earnings - Overtime (Regular)'  to setup a Transaction Code to process overtime amounts that are paid regularly.  These amount are projected over the year in the FDS tax calculations.

To create an 'Earnings - Overtime (Regular)' Transaction Code:

- Go to the 'Edit' , 'Transaction Codes' menu options.

- Click 'Insert' and select the Transaction Category 'Earnings - Overtime (Regular)'.

- Accept/ Change the default 'Code'.  This is a unique identifier for the Transaction Code and the numbers are designed to group similar types of transaction together.

- Enter an appropriate 'Description'.

- Select the 'General Ledger' Code to be entered onto journal reports and exports.

- Select the 'Unit Type' whether the overtime will be processed in days or hours.

- Enter the 'Rate', or the factor to be applied to the hours e.g. overtime at the rate of time and a half would be entered as 1.5.

- Tick 'Previous Rate' if the overtime is to be based on the previous rate of pay.  Leave unchecked to have the current rate applied.

- Set the 'Duration' - whether the transaction is to come through for a 'Single', 'Multiple' or 'Indefinite' number of periods.

- Set the 'P6 Field' for year end ITF16 export.

- Set the 'Default Currency'.  The currency that the Earning will paid in on the payslip and used in the calculation of PAYE.

- Click 'Ok' to save the new Transaction Code.

When processing the transaction enter the number of hours (or days) worked.  Belina PayrollHR will then automatically calculate the value of the overtime in hours or days as required:

      Hours/ (days) worked        x        Calculated rate of pay        x        'Rate' (e.g. 1.5 for time and a half and 2 for double time)

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Use 'Earnings - Retrenchment' to setup a Transaction Code to process retrenchments.  When processing enter the amount of the retrenchment.  Retrenchment payments, properly made, are subject to tax concession.  This Retrenchment Transaction Code takes into account the tax allowances allowed by ZIMRA as set up under the retrenchment tax parameters in 'Setup' and 'Tax' menu options.

To create an 'Earnings - Retrenchment' Transaction Code:

- Go to the 'Edit' , 'Transaction Codes' menu options.

- Click 'Insert' and select the Transaction Category  'Earnings - Retrenchment'.

- Accept/ Change the default 'Code'.  This is a unique identifier for the Transaction Code and the numbers are designed to group similar types of transaction together.

- Enter an appropriate 'Description'.

- Select the 'General Ledger' Code to be entered onto journal reports and exports.

- Set the 'Duration' - normally this would be set to 'Single'

- Set the 'P6 Field' for year end ITF16 export.

- Set the 'Default Currency'.  The currency that the Earning will paid in on the payslip and used in the calculation of PAYE.

- Click 'Ok' to save the new Transaction Code.

The amount of the retrenchment is entered during the processing of the transaction.

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Use 'Earnings - Shorttime' to setup a Transaction Code to process short time hours.   If an employee is not to be paid for a specified number of hours then process the number of hours.  The Shorttime code will deduct from basic:

      Hours worked        x        Hourly Rate of Pay      

To create an 'Earnings - Shorttime' Transaction Code:

     Click to play

- Go to the 'Edit' , 'Transaction Codes' menu options.

- Click 'Insert' and select the Transaction Category 'Earnings - Shorttime'.

- Accept/ Change the default 'Code'.  This is a unique identifier for the Transaction Code and the numbers are designed to group similar types of transaction together.

- Enter an appropriate 'Description'.

- Enter the 'Employee Amount' if the payment is a standard amount.  If the amount varies leave blank and place a tick against 'Manual Edit' which allows the entry of an amount when processing.

- Select the 'General Ledger' Code to be entered onto journal reports and exports.

- Select the 'Unit Type' whether the overtime will be processed in days or hours.

- Enter the 'Rate', or the factor to be applied to the hours e.g. overtime at the rate of time and a half would be entered as 1.5.

- Tick 'Previous Rate' if the overtime is to be based on the previous rate of pay.  Leave unchecked to have the current rate applied.

- Set the 'Duration' - whether the transaction is to come through for a 'Single', 'Multiple' or 'Indefinite' number of periods.

- Set the 'P6 Field' for year end ITF16 export.

- Set the 'Default Currency'.  The currency that the Earning will paid in on the payslip and used in the calculation of PAYE.

- Set 'Manual Edit' if you would like to be able to enter, or change, the amount of the Allowance when processing.

- Click 'Ok' to save the new Transaction Code.

Dependencies: This Transaction Code can be based on a percentage, amount or the number of units stated in one or more dependent Transaction Codes.

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