Set Up Hourly Pay Level
Using this method, you will create a pay level field in Employee Defaults and apply a rate of 1.00 per hour for each employee.
This example uses a Commission pay level.
Step 1: Enter the employee default pay level
- From the Maintain menu, select Payroll, and then Payroll Settings.
- In the left navigation area, click on Company Information, then Pay Types.
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In the Hourly table, enter Commission in the first blank pay level field.
Note: What you enter here will print on employee paycheck stubs in the pay level area.
- Select or type in the G/L account (usually wages expense). To display a list of existing accounts, type ? in this field or select the Lookup button. To add a new account, type + or double-click the field, which displays the Maintain Chart of Accounts window.
- Select Finish to save the field.
Step 2: Enter the employee pay level rate
- From the Maintain menu, select Employees/Sales Reps. Sage 50 displays the Maintain Employees/Sales Reps window.
- Enter or select the employee ID. To display a list of existing employees, type ? in the Employee ID field, or select the Lookup button.
- Select the Pay Info tab, and choose the Hourly-Hours Per Pay Period pay method, if it isn't already selected.
- Select the Commission pay level field and enter 1.00 as the hourly rate.
- Save the employee record.
How it works
During payroll entry, enter the earned amount in the Commission pay level field as hours rather than a rate. For example, if the employee earned $75.29 commission, you would enter 75.29 commission hours. The $75.29, which is taxable, would also be added to the displayed Gross amount at the bottom of the Payroll Entry window.