Should I set up the Pay Basis as Hourly or Salary?

If you click the Wages side menu (found under the Payroll Details tab of each employee), you’ll see that you can choose between selecting Hourly or Salary as the Pay Basis.

At first glance, the answer to this obvious. If you employ someone on an hourly basis, you select Hourly. On the other hand, if an employee is on a fixed salary, then you select Salary. This is indeed the simplest approach and works fine in 99 percent of cases.

The only fly in the ointment is that you need to double-check how your entitlements are set up: if you prefer to set up your entitlements as a percentage rather than as a fixed number of hours per week, then you need to express all employee wages in terms of an hourly rate.

The contents from this page are taken from Making the Most of MYOB Payroll, 2nd edition, by Veechi Curtis, available online for only $19.95

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