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Changing an employee’s pay rate

How to change your employee's pay rate in PaySauce

Jessica avatar
Written by Jessica
Updated over a month ago

From time to time, you may want to change an employee’s pay rate. The instructions below apply for any pay rate you might need to change, including salaries, hourly rates or other allowances that you may have set up.

If you want the payment value to be updated for the current pay that you are running, ensure that your employee’s pay is in the ‘data entry’ state. If you have already calculated the pay, you will need to return the pay to the data entry state to make changes.

Change pay rate on your computer

  1. Select Employees on the left hand side of your screen in PaySauce.

  2. Click on the employee's name in the list, then click on the ‘Payments’ tab.

  3. Select the Edit pencil at the right-hand side of the payment line that you'd like to change.

  4. Change the salary value or hourly rate (or any other value that you might be using that needs to be updated).

  5. Click the Ok button a little further down on the right.

  6. Save when you are done

The rate will change for all new pay cycles. Check the change has been made for the current pay cycle in the Run a Pay area.

Change pay rate on your mobile

  1. Tap the Employees icon

  2. Tap the employee name that you want to change a payment for

  3. Under the ‘Rules’ section, tap on the ‘Payments’ line

  4. Tap on the payment that you want to edit

  5. Enter a new value in the amount field, then tap ‘done’.


New pay rate applies for part of a pay period

Changing your employee's rate will always apply the new rate to the whole pay period.

If you want to pay part of a pay period at one rate, and the rest at another, we suggest the following:

  • Do not update the employee's pay rate yet

  • For the part of the pay period that you need to apply the new rate for, work out the difference between the old rate and the new rate

  • Pay the difference to the employee as a fixed amount payment in this pay run

  • Update the pay rate for the next period

Example:

Hourly

John earns $25 per hour and is getting a pay rise to $28 per hour, effective Wednesday. His pay period runs Monday to Sunday, and he worked 20 hours before the rate change and 15 hours after.

  • Don't update John's rate yet (leave it at $25 hour)

  • Calculate the difference: $28 - $25 = $3 per hour

  • Multiply by hours worked at the new rate: $3 × 15 hours = $45

  • Add a fixed amount payment of $45 to this pay run

  • After the pay run, update John's rate to $28 per hour for next period

Salary

Sarah earns $65,000 per year (paid fortnightly, so $2,500 per pay period) and is getting a pay rise to $70,000 per year ($2,692.31 per fortnight), effective from the second week of a pay period.

  • Don't update Sarah's salary yet (leave it at $65,000)

  • Calculate the daily difference: ($70,000 - $65,000) ÷ 52 weeks ÷ 5 days = $19.23 per day

  • Multiply by working days at the new rate: $19.23 × 5 days = $96.15

  • Add a fixed amount payment of $96.15 to this pay run

  • After the pay run, update Sarah's salary to $70,000 for next period

Sarah receives: $2,500 + $96.15 = $2,596.15, reflecting one week at her old rate and one week at her new rate.


Setting up multiple pay rates

Some employees have more than one pay rate - for example, a specific rate for overtime or different rates for different jobs. It is super easy to add as many pay rates as you need in PaySauce.

Set up multiple rates on your computer

  1. Select Employees on the left hand side of your screen in PaySauce.

  2. Click on the employee's name in the list, then click on the ‘Payments’ tab.

  3. Click on the plus icon on the right hand side to add a new payment type.

  4. If you’re setting up a new hourly rate, select ‘hourly’ in the rule field.

  5. Give your payment line a title (the employee will be able to see the name of this rate on their payslip).

  6. In the frequency field, indicate if the payment is regular or variable. If you want the employee to be able to timesheet to this pay rate, follow our instructions in our ‘Timesheets’ article here.

  7. If the hours are to be entered each pay time, enter ‘0’ in the hours field here.

  8. Enter the hourly rate in the rate field.

  9. Click Ok to save the new payment.

Set up multiple rates on your mobile

  1. Tap the Employees icon.

  2. Tap the employee name that you want to add a payment for.

  3. Under the ‘Rules’ section, tap on the ‘Payments’ line.

  4. Tap the plus icon in the top right.

  5. Select the appropriate rule - choose hourly for an hourly rate.

  6. Give the payment a title.

  7. Select a frequency.

  8. Enter 0 for the hours if it is to be entered each pay time, otherwise specify the hours for each pay.

  9. Enter the hourly rate.

  10. Tap done.

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