Creating Additional Income Types

Lesson

Up until now, if you wanted to pay an employee an additional payment, you used one of "Bonus", "Commission", or "Other", but these options aren't detailed. You don't know what "Other" means in your records. Neither does the employee who is checking their pay stub. And because "Other" has been a catch-all for miscellaneous payments, there are particular tax implications that "Other" cannot consider. On top of this, another highly requested feature is the ability to create recurring employee payments. Additional Income Types fills in all these gaps.

Income Types vs Benefits in Payroll

"Income Types" is now your section to customize and choose your additional income types, which nicely sits next to the already existing "Benefits" section that allows you to set non-cash benefits or employee deductions.

To put it simply, "Income Types" is for payments that are directly paid through payroll to employees. Meanwhile, "Benefits" is for payments (or benefits) that get paid by the company to the benefits provider, which are then recorded and taxed on employee pay stubs.

Creating Additional Income Types

  1. Go to Payroll.
  2. Click on Income Types.
  3. From there, you'll see the default income types that all accounts are preset with (Bonus - Discretionary, Bonus - Work-Related, and Commission). You'll notice that we've split Bonus into two categories to give you more default granularity. If you're unsure of the difference between the two, you can learn more about them in our help article on Bonus Payments.
  4. Click +Income Type in the bottom right corner.
  5. Select the income type you'd like to apply to your payroll account and add a description.
  6. Save your Additional Income Type.

Requesting Customized Additional Income Type

If you don't see the Additional Income Type that you'd like, you can request a customized Additional Income Type.

  1. Go to Payroll.
  2. Click on Income Types.
  3. Click +Income Type in the bottom right corner.
  4. Click "Request income type" and complete the form.

Once the request is submitted, a Payroll Certified Specialist will review the tax settings and apply the new income type to your account.

Setting Recurring Amounts

If you'd like to set a recurring amount for a specific Additional Income Type, you can now do this with Humi Payroll.

  1. Click into the Additional Income Type that you'd like to set a recurring amount for.
  2. Click on ┅ to add a recurring amount for a specific employee.
Keep in mind: the recurring amount that you enter is the amount per pay period. For example, if you'd like to pay a Car Allowance of $100 each pay period, you should enter $100.

Viewing and Editing Additional Income Types When Running Payroll

In the case that you want to view and edit Additional Income Types when running payroll, you can now do this on the run payroll screen.

  1. Go to Payroll, and click on the specific pay period.
  2. You'll see three options in the middle column (+Bonus, +Commission, and +Other). In Bonus, you'll now have the option to pay out "Bonus - Work-related" or "Bonus - Discretionary".
  3. Click +Other. You'll see all your selected Additional Income Types for that employee. Edit the amount in this window.
  4. When you're done, click Save.