• How to Create a Payslip

    Tip: Wagebook isn’t a payroll programme and doesn’t calculate wage information, so you will need to enter it manually. It does have a handy built-in feature that enables you to link to Inland Revenue’s website and their ‘PAYE/KiwiSaver deductions calculator’. It’s a good idea to discuss with your accountant how to break down a payslip into its different parts (such as Gross, PAYE, KiwiSaver etc.) and the various rules that apply to each part. For example, KiwiSaver isn’t deducted from Accommodation allowances so this needs to be calculated separately from Gross earnings before tax. It’s important to get it right so that you don’t have to tidy anything up down the track! Click here for information on correcting an error in a Pay Worksheet after the payslip has been issued.

    Let’s look at how to create a payslip using employee Fred Framer as an example. We begin in the Wagebook screen by clicking New to bring up the Pay Worksheet.

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    Step 1: Select your employee from the Employee drop-down list.

    Tip: You will need to have already Set Up an Employee before you can create a payslip for them. As part of this process, you will have assigned them a unique code and this is what will appear on the drop-down list. For example, Fred Framer’s shorthand code is FRED but if the farm then employed Fred Granger, they might be assigned FREDF and FREDG as codes.

    Step 2: In Period End, select the last day of the pay period.

    Step 3: In Pay Date, select the date that payment occurred.

    Tip: This must match your bank statement. Be aware that payments may be impacted by public holidays or weekends. For instance, John automatically pays his employees on the 1st of the month but if this is a Saturday or Sunday then payment is deferred to the next working day. Some months he needs to enter the 2nd or 3rd as the Pay Date.

    Step 4: Select what tab you want to work in. We recommend working through them in order.

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    Pay Tab


    You will need to enter each component of the payslip as a separate line item and code it appropriately. If you are unsure, please discuss with your accountant or contact our Support Centre.

    Scenario: Fred Framer is paid fortnightly by direct credit to his bank account. He receives a salary of $40,000 p.a. He also receives $200 per week accommodation allowance, $1 per week dog allowance (for each of his three dogs), and a $5 per week allowance for wet weather gear. His income tax (PAYE) is calculated based on his salary + accommodation + dog allowance. His KiwiSaver is calculated on a 2% contribution from salary + dog allowance. He also has $200 per week deducted as rent for living on-site.

    Step 5: Select the type of payment from the drop-down list. The type selected determines how the information in each line is pulled into the IR345 and IR348 reports.

    For example, GR (Gross) is selected for Fred’s salary payment (including tax).

    Step 6: Review Category and Extended Code; these should populate automatically based on the type of payment. The Category code should be WA (Wages) and the Extended Code will vary and can be changed if required. These codes will also appear in reports generated from the Transaction and Cashflow screens.

    For example, Fred’s Gross salary payment is WA:PERM (Wages:Permanent) .

    Step 7: Enter the payment amount. For example, Fred’s Gross salary payment is $1538.46.

    Step 8: Review the Comment and add additional notes if required. This field will populate automatically based on the type of payment and you can add additional notes by clicking on the folder icon. These comments will not be displayed on the Pay Worksheet but they will be printed on the Payslip.

    For example, a note is added that Fred’s three dogs are named Hunter, Jess, and Fido.

    Step 9: Keep adding separate lines for each part of the payslip until you have completed them all. You can add lines by right clicking and selecting from the drop-down menu or by using the keyboard shortcut Insert.

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    As you add lines to the Pay Worksheet, the figures in the top right hand corner will change. You can use this to check progress and confirm that you’re entering information correctly.

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    Tip: Clicking on the PAYE Calculator will bring up Inland Revenue’s PAYE/Kiwisaver deductions calculator in a separate window.

    Leave Tab

    Tip: Wagebook isn’t a payroll programme and doesn’t calculate or record accrued leave. This information will need to be calculated and tracked manually, or by using payroll software.

    Holiday leave is entered on two tabs: Pay and Leave.

    On the Pay tab enter the Holiday pay as you would the Gross amount but select HOL (Holiday Pay) as the Type. Enter other components of the payslip as you would normally.

    On the Leave tab record what type of leave was taken, how many days were used, and a detailed comment to jog your memory later (i.e. the kind of leave, reasons, dates etc.). These will appear on the payslip.

    Tip: Annual, Sick, or Other can be selected as types of leave. Use ‘Other’ for Bereavement or Paid Parental leave.

    Leave must be recorded in the payslip that covers the same period that the leave was taken.

    Imagine that Fred took two weeks off work (instead of working on the farm as he does in our other scenario). See how this would change his Pay Worksheet and Payslip in the screenshots below.

    Holiday Pay Tab
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    Holiday Leave Tab
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    Payslip
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    Direct Credit Tab

    Tip: This tab will only appear if you have selected Direct Credit when setting up the employee. It is for paying wages directly from Cashmanager RURAL. If you have set up a Direct Credit at your bank branch or through online banking then select Manual payment during set-up.

    Click here for information on How to Set Up Direct Credits.

    KiwiSaver Tab

    KiwiSaver contributions are entered on two tabs: Pay and KiwiSaver.

    The Employee contribution is entered on the Pay tab. It needs to be entered as:

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    It needs to be manually calculated based on the percentage nominated by the employee on their KiwiSaver Deduction form (KS2).

    The Employer contribution is entered on the KiwiSaver tab.

    The Employee contribution is pulled through from the Pay tab and will appear greyed out.

    The Employer contribution should be the full amount (Gross) that is contributed to the employee’s KiwiSaver for that pay period.

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    The ESCT amount is the taxable portion and needs to be entered separately. The tax rate for ESCT is based on the employee’s gross earnings.

    Tip: Clicking on the PAYE Calculator will bring up Inland Revenue’s PAYE/KiwiSaver deductions calculator in a separate window. It is also a good idea to speak with your accountant and Inland Revenue if you have any any questions about KiwiSaver calculations.

    Printing a Payslip

    To view a payslip, select it on the Wagebook screen and either click on the Preview button or click on Reports > Payslip.

    See below for an example of Fred Framer’s fortnightly payslip for working on the farm.

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    Employers are legally required to provide a payslip for each pay period to their employees. You can provide your employees with the payslips created in Cashmanager RURAL by printing, saving as a PDF and emailing manually, or emailing directly from Wagebook*.

    *This requires Microsoft Outlook and software conflicts may prevent this function working.

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    Step 1: Select the row showing the pay worksheet you want to print or export.

    • Tip: You can use the filter to help you find particular pay worksheets. You can filter by employee and/or by Pay Period End Date. For instance, filtering to find all pay worksheets for Fred Framer after 01/01/2016.

    Step 2: Click on Reports and select Payslip.
    Step 3: Choose your method.

    1. Click Print Report. This will send to a printer or save as a PDF document depending on your print settings. You can change your default setting by clicking on Print Options.
      • Tip: Once you are happy with your default print setting, you can simply click on the Print button on the Wagebook screen.
    2. Click Export and select Email PDF. Click Other Party and then select the employee from the dropdown list.
      • Tip: The employee’s email address will appear automatically if it was entered when they were set-up. To add or edit the email address later:
        • Go to Setup and select Other Party.
        • Select the employee and click Edit.
        • On the Details tab, add the email address.
        • Click OK to save changes.

    Tip: You can also select Other and then manually type in the email address you wish to send to.

    Other Relevant Topics

    What is Wagebook?
    How to Set Up an Employee.

    IRD resources (NZ)

    (IR335) Employer’s Guide.
    PAYE/KiwiSaver Deductions Calculator.
    Taxing Holiday Pay.
    Employer monthly schedules: Getting it right.
    KiwiSaver for employers.

    ATO resources (AUS)

    Tax and super obligations.
    Work out tax to withhold and super to pay.


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