Payroll Module Setup, Pay Type tab is under System Manager ⇒ HRPro Setup, Payroll Module Setup.
Pay Type Description on Payroll Reports Based on Payroll Record
When enabled: The column headings on all payroll reports will display the pay type description entered in the Payroll records. For instance, the printable pay type description on the report could be "200," allowing the company to manage and customize different pay type descriptions within "200" across the organization.
When disabled: The column headings on all payroll reports will use the pay type description defined below (i.e., the User Definable Pay Types 1 to 15).
See also What is "Pay Type Description on Payroll Reports based on Payroll Record"?
Enable Pay Type Table: When activated, the Pay Type will reference the Pay Type Table instead of using the Pay Types defined below. If your company finds the 15 user-defined pay types sufficient, it is advisable not to activate the Pay Type Table, as it may introduce unnecessary complexity.
Enable Pay Type Validation: When enabled, the Pay Type entered in a Payroll Batch must match an existing Pay Type in the Pay Type Table.
Recommendation:
Typically, when Enable Pay Type Table is turned on, both Pay Type Description on Payroll Reports Based on Payroll Record and Enable Pay Type Validation should also be activated for consistency and accuracy.
You can define the O.T. Pay 7 and O.T. Pay 8 descriptions on this screen.
Visible: When it is unchecked, the unchecked pay type(s) will not be displayed on the Payroll Amendment Screen.
Full Pay Wage: These checkboxes indicate if a particular pay type should be included in the calculation of the past 12 months' average wages for 713. According to Chapter 3: Wages from the Labour Department, the following pay items are considered Full Pay Wages:
Basic Salary
Allowance 1 to 4 under Basic Salary
Overtime Pay
Late Deduction
Holiday Pay
Annual Leave Pay
Sickness Allowance
Injury Leave Allowance
Maternity/Paternity Leave Allowance
However, users can freely amend this list according to their policy.
Taxable: These check boxes are to indicate whether this pay type is required to be declared in the IR Forms.
MPF Contribute: These check-boxes are to indicate whether this pay type requires MPF contribution.
AVC Contribute: These check-boxes are to indicate whether this pay type requires Additional Voluntary Contribution (only applicable if AVC Relevant income options are selected for Voluntary Contribution based on in Payroll Module Setup, MPF tab).
Wages Payable (SMW): These check-boxes are to indicate whether this pay type should be included to calculate the Statutory Minimum Wage (SMW),
e.g., Bonus/Double Pay should be unchecked in Full Pay Wage but should be checked in Wages Payable (SMW) according to the current Employment Ordinance.
With Unit Rate: These check-boxes are for the User Definable Pay Type that describes whether that Pay Type allows to input Unit Rate or not.
Unit: This column is to define the Unit of that User Definable Pay Type when With Unit Rate is turned on. Examples are day(s), and hour(s).
IRD Category (E): This is to select which category the pay item belongs to in the IR forms for Employee (IR56E, IR56B, IR56F, IR56G).
IRD Category (NE): This is to select which category the pay item belongs to in the IR forms for Non-employees (IR56M).
It is not recommended to rearrange the Pay Types if Payroll Batch is ever generated, as the Pay Type Descriptions on Payroll Reports are based on the current settings in the Pay Type tab.
You can define the Pay Slip Display Names by clicking the Pay Slip Display Name button. See Pay Type and Pay Slip Display Name.