Understanding Pay Types for Canada
You set up pay types to categorize various employee earnings and to direct labor to different accounts in the general ledger. You can define up to 999 pay types. For example, most companies need to set up different pay types for holiday, sick, and vacation pay; or for personal leave pay.
When you set up pay types you can:
Specify how different pay types are used when computing employee pay.
Assign automatic pay methods for autopay employees.
Specify whether a pay type is tax exempt.
Define information to be printed on T4 forms for the associated pay type for payroll.
Specify, for each pay type, whether hours, currency amounts, or both should be passed to the general ledger.
You can also attach a media object with explanatory notes or other information to a pay type. If you attach a text media object to the pay type, the first two lines of text that you enter appear on reports that include the pay type description.