Pay Types
Employee’s Pay Type is used to identify how an employee will be paid and whether commissions or vacation pay apply. Pay Type resides in Employee’s Profile under Compensation.
| Pay Type | Definition |
| Hourly EE | Used for an hourly employee who is paid based on the hourly rate maintained in their profile. |
| Hourly EE also receives commissions | Used for an hourly employee who also receives commissions. Special taxation options may be configured for commissions under Statutory Deductions, and commissions may be treated differently when determining insurable hours. |
| Hourly EE Paid Vac Pay each pay | Used for an hourly employee who receives vacation pay with every pay. The employee must have a Vacation Plan and Vacation Percentage configured in their profile. |
| Salary EE | Used for a salaried employee who receives a base salary each pay period. |
| Salary EE paid Vac Pay each pay | Used for a salaried employee who receives vacation pay with every pay. The employee must have a Vacation Plan and Vacation Percentage configured in their profile. |
Important:
Changing an Employee’s Pay Type
When changing an employee from:
- Hourly EE to Hourly EE – Paid Vacation Pay Each Pay, or
- Salary EE to Salary EE – Paid Vacation Pay Each Pay
Any existing vacation accrual balance will automatically be paid out when the pay type is changed.
Review the employee’s existing vacation accrual balance before making the change to ensure the resulting payout is expected.
How to Confirm an Employee’s Pay Type
- Review the Pay Type in the Employee’s Profile > Compensation
- Refer to the Standard Reports Package - If an employee has a “V” showing beside their rate, this indicates the employee receives vacation each pay.
