If you need to pay your employees above their regular earnings outside of commissions or bonuses, you can do this by adding Income Types to your payroll.
Humi provides several income types, each configured with its specific tax, CPP, and employment insurance implications.
The income types Humi provides are divided into two categories:
- Income types based on the regular hourly rate
- Income types with dollar amounts
We strongly recommend adding the income types based on the regular hourly rate to your payroll if you have hourly employees. Once you've added them to your payroll, you'll be able to enter the hours worked for the income type. If you've been using an additional compensation type for any "insurable hours" income types, learn how to remove it here.
This article will explain:
- Income types based on the regular hourly rate
- Income types with dollar amounts
- Retroactive Pay
- Vacation Pay income types
How to add an income type
If you're wondering how to add an income type to your payroll, this article will walk you through the process step by step.
Income types based on the regular hourly rate
The income types based on the regular hourly rate allow you to enter the required number of hours, and Humi will calculate the dollars owed to the employee. If the employee earns a salary, Humi prorates it to find their regular hourly rate. Learn more about how Humi prorates regular pay here.
These income types include:
- Double OT
- Holiday Pay
- Time Worked on a Holiday
- Sick Pay
- Vacation Payout - Time Off
- Retroactive Pay Hourly
- Knowing which "Retroactive Pay" income type to use is dependent on the scenario. Learn more about retroactive pay.
- Bereavement Leave
- Flex Time Off
- Personal Time Off
- Unpaid Time Off (Salaried)
- When you enter hours for this income type, we’ll automatically reduce insurable earnings and hours for relevant paystubs and ROEs.
When you run payroll, all income types based on the regular hourly rate added will be displayed under the first section, "Income types based on the regular hourly rate," when you click the "+ Other income" field.
Remove an additional concurrent compensation
Suppose you added an additional concurrent compensation for any "insurable hours" income types now available. In this case, you can now remove this compensation and switch over to using this new feature by adding the appropriate "insurable hours" income types. Learn how to remove a concurrent compensation here.
Note: It's not mandatory to remove the additional compensation to start using the insurable hours income types. If you don't remove it, you can add the "insurable hours" income types to your payroll and use these fields in the future instead of the existing additional compensation field.
Important note
The "Hours Template" remains unchanged. If you're currently uploading hours to Humi, you'll need to manually enter the hours for any "insurable hours" income types after uploading your hours template. Just a reminder that you must add the "insurable hours" income types to your payroll, so they appear when you click the "+ Other Income" field to enter the employee's hours. Learn how to add an income type.
Income types with dollar amounts
Humi provides several income types with dollar amounts that you can add to your payroll to pay your employees above their regular pay quickly.
These income types require a dollar amount and can be a one-off payment or you can set it as a recurring payment for things such as car and cell phone allowances.
"Dollar amount" income types Humi provides:
- Car allowance
- Cell phone allowance
- Controlled tips
- Severance
- Other Pay
- Extra Pay
- Pay in Lieu of Notice
- Retroactive Pay
- Knowing which "Retroactive Pay" income type to use is dependent on the scenario. Learn more about retroactive pay.
After adding the income type(s) required, they'll appear when you run payroll and click on the "+ Other Income" field. Learn how to add an income type here.
Retroactive Pay
Sometimes you may need to pay an employee for money they earned in a previous pay period. When this happens, entering the amount in the correct "Retroactive Pay" field is very important.
There are two retroactive pay options:
- Retroactive pay with hours
- Retroactive pay with dollars
Knowing which income type to use is dependent on the scenario.
Scenario #1 - Hours missing:
Your employee is missing one day's pay because they forgot to punch in for their shift. In this case, when you run payroll, you should enter the number of missing hours in the "Retroactive Pay Hourly" field under the first section: "Income types based on the regular hourly rate."
Scenario #2 - Dollar amount missing:
Your employee is missing pay because they got a pay increase, but the admin didn't update their pay rate. In this scenario, the employee isn't missing hours but rather a dollar amount.
When you run payroll, scroll down to the "Income types with dollar amounts" section and enter the missing dollar amount in the "Retroactive Pay" field to correct this.
Vacation Pay Income Types
There are two income types that will reduce an employee's vacation pay balance in Humi:
- Vacation Payout - Time Off
- Vacation Payout
Click here to learn more about Vacation Pay in Humi.