Within ClockOn an employee's pay is based firstly on the base (hourly) rate and secondly upon overtime, loadings, and penalties as defined by their Rule Set.

This guide includes details on the following;

  1. Available Options
  2. Hourly Rate and Yearly Salary Fields 
  3. Configuring Employee Bank Accounts & EFT
  4. Configuring Employee Superannuation
  5. Configuring Employee Allowances

Available Options

  1. Navigate to Setup > Employee Details or select the people icon from the top of the main screen.
  2. Select the employee from the Employee drop-down menu
  3. Click on the Pay tab
  • Rule Set: The linked Rule Set that governs the employee's payroll calculation.

  • Rate Set: The linked Rate Set provides settings to allow for minimum pay rate for employees if they 
    1. Have a birthday.
    2. Exceed a set number of industry hours.
    3. Pass a number of years worked

  • Tax Category: This allows the user to set the taxation rate for the employee. Should an employee's Tax Category change in the course of employment, the new rate of taxation applies from the commencement of the current pay period.

  • Gross Pay Type: While also referred to by the ATO as Income Type, this field allows the user to specify the type of employment for the employee.

    The available options for this include  
    1. Closely Held Employees
      A payee that is directly related to the entity, from which they receive payments. This includes family members of a family business, directors, or shareholders.

    2. Foreign Employment
      This is used for employees who are Australian tax residents that are also subject to tax in another country, for work performed in that country.

    3. Labour-Hire
      This includes payments by a business that arranges for persons to perform work or services directly for the clients of that entity.

    4. Salary and Wages
      All assessable income paid to employees for work in Australia other than that included in the other income types.

    5. Voluntary Agreement
      Used for contractors where they are being paid by the business, the business can elect whether or not to withhold the tax on behalf of the contractor.
      For more information, please view the Configuring Contractors article.

    6. Working Holiday Makers
      This includes employees where their income rules are limited based on visa subclasses for foreign residents.
      For more information, please view the Configuring Working Holiday Makers article.

  • Medicare Reduction: This allows for the user to specify whether the employee is entitled to a reduction in their medicare liability, the options for this include None, Spouse Only, and Dependents. This value is set for employee onboarding purposes and doesn't affect tax calculations.

  • Pay By: This list gives the Administrator the option of paying the employee by cash, cheque or EFT.

  • Hourly Rate: The Hourly Rate field is enabled and editable if the linked Rule Set has an hourly pay type defined. Entering a value in this field automatically displays a derived yearly salary (in read-only form).
    TIP: For casual employees, this hourly rate is often set to be the base (un-loaded) rate and the casual loading is set in the link the Rule Set under the miscellaneous loadings
  • Yearly Salary: The Yearly Salary field is enabled and editable if the linked Rule Set has a salary pay type defined. Entering a value in this field automatically displays a derived hourly rate (in read-only form).

  • Pay Start: This field determines the start date of the next payroll for the selected employee. Altering this value will have the effect of defining a different pay period and is useful for implementing rotating or secondary payrolls on different days of the week.

  • Pay End: This field determines the end date of the next payroll for a particular employee. The date is cleared after the payroll is run and reverts to the normal pay period length configured in the employee's Rule Set.

  • T.F.N: This is a required field however if the employee has not provided this information the ATO provides alternatives that can be used until the correct number has been provided, please see the following ATO link for more details

  • Country: This allows the user to specify the country of origin for the employee.
    Please note that this field is only required for employees with the Gross Pay Type of Working Holiday Makers.

  • Dependants: This allows the user to specify the number of dependents that the employee has.
    Please note that this field is only required if the Medicare Reduction option Dependents is selected.

  • ABN: This allows for the employee's ABN to be specified, this is typically used for Contractor employees.

Hourly Rate and Yearly Salary Fields 

The ruleset that the employee is linked to dictates whether the employee is on an 'Hourly’ or 'Salary' pay structure. ClockOn will only show the relevant field (Hourly Rate or Yearly Salary) as enabled depending on this setting. 

As only one of these fields is editable, the corresponding field will auto calculate its value. This is based on the following calculation.

Hourly Rate = Yearly Salary / 52 (weeks in a year) / Weekly working hours

Yearly Salary = Hourly Rate * 52 * Weekly working hours

The employee's working hours are specified in the Working Hours tab.

Configuring Employee Bank Accounts & EFT

Employees paid by EFT (Electronic Funds Transfer) must have their personal banking details recorded in ClockOn. ClockOn does not enable direct funds transfer but generates an ABA file designed for the purpose. A third-party electronic banking system is used to import funds into employee bank accounts.

  • Bank Alias: This allows the entry of an alias that corresponds to the employee's bank.
  • Branch: Identifies the branch to which payments are to be made when EFT is the selected method of payment.
  • A/C Name: Displays the name of the account into which the employee's pay is to be transferred.
  • A/C Number: Identifies the number linked to the A/c Name used for payroll purposes.
  • BSB: Stores the numeric identification of the bank branch linked to the employee.

Configuring Employee Superannuation

Superannuation fund: Percentage contributions made by the employer under the Superannuation Guarantee Charge (SGC) are defined in the linked Rule Set. The Administrator is responsible for updating the percentage. Employee personal contributions can be made using the allowances function.

Member number: This defines the number used by the superannuation fund for the identification of the employee. The member number appears in superannuation reports.

Configuring Employee Allowances

Conditional pay allowances and additional bank disbursements can be set up using the Allowance Manager. Once an Allowance Set has been configured for either a particular employee or a group, it can be linked to the employees. Selections can be made for the correct Allowance Set and the set can be customized to suit individual employees by using the Edit command. For more information, view the Allowance Manager section.

  • Select: This determines which Allowance Set applies to the employee
  • Edit: The Allowance Set can be modified for an employee, such that the change will not affect other employees linked to that Allowance Set. When changes have been made to an Allowance Set, the Customised check box will be checked.
  • Remove: This will remove the employee from the selected Allowance Set but will not affect other employees.

NOTE: For details on adding or removing individuals allowances and deductions see the section Allowance Manager.