Bonus
or Commission for Hourly Employees:
Set Up Hourly Pay Level
How Do I...
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.
-
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.
What do you want to do next?