Set Up Pay Types
Learn about the different set up pay types.
Pay types let us know how to handle employees' and contingent workers' earnings, reimbursements, contributions, and deductions. Pay types vary depending on company setup and pay structures, so we need to know what applies to your company. Check out Learn More below for guides to contributions, deductions, and what should be pre-tax and post-tax.
At this time, you will need to add all deduction types that you have used this year (before and while using Zenefits). We recommend looking at what category you used in your previous payroll provider's system and matching that. Note that if you're switching to Zenefits from another payroll provider, you can bulk import by following these instructions.
For insurance benefits managed by Zenefits, we'll take over deductions automatically once your account is active (but they still need to be added to your pay types now!).
Note: that this step is just to create the pay types (i.e., your library of line items). Once your account is active, you'll be able to add the individual amounts for each worker to their Pay Template.
Earnings
| Earnings | |
|---|---|
| 3rd Party Sick Pay - After 6 Months | Subject to income tax withholding only |
| 3rd Party Sick Pay - First 6 Months | Fully taxable |
| 3rd Party Sick Pay - Non-Taxable | non-taxable |
| Additional Earnings | Fully taxable |
| Bonus | Fully taxable |
| Commission | Fully taxable |
| Contractor Double Overtime Hours | Non-taxable |
| Contractor Overtime Hours | Non-taxable |
| Contractor Regular Earnings | Non-taxable |
| Double Overtime Hours | Fully taxable |
| Group Term Life Imputed Income | Fully taxable |
| Holiday | Fully taxable |
| Non-Taxable Allowances | Non-taxable |
| Overtime Hours | Fully taxable |
| Owners' Draw | Non-taxable |
| Personal Leave | Fully taxable |
| Regular Earnings | Fully taxable |
| Reimbursement | Non-taxable |
| S-corp Health and Disability | Subject to income tax withholding only |
| Sick Leave | Fully taxable |
| Vacation | Fully taxable |
Deductions
Note: Deductions labeled as “Catch-up” are to be used for employees over the age of 50.
| Deductions | |
|---|---|
| 401( k ) Loan | Post Tax |
| 401( k ) Retirement Plan - Catch-up | Exempt from income tax withholding |
| 401( k ) Retirement Plan - Standard | Exempt from income tax withholding |
| 403( b ) Retirement Plan - Standard | Exempt from income tax withholding |
| 403( b ) Retirement Plan - Catch-up | Exempt from income tax withholding |
| 457 Retirement Plan - Catch-up | Exempt from income tax withholding |
| 457 Retirement Plan - Standard | Exempt from income tax withholding |
| Accident Insurance | Post Tax |
| Accidental Death and Dismemberment Insurance | Post Tax |
| After Tax | Post(After) Tax |
| Cancer Insurance | Post Tax |
| Critical Illness Insurance | Post Tax |
| Dental Insurance | Pre Tax |
| Dental Insurance Post Tax | Post Tax |
| Flex Spending Account | Pre Tax |
| Flex Spending Account Dependent | Pre Tax |
| Garnishment Administrative Fee | Post Tax |
| Garnishment Remittance Fee | Post Tax |
| Group Term Life Insurance | Post Tax |
| Health Savings Account (HSA) - Post Tax | Post Tax |
| Health Savings Account (HSA) - Pre Tax | Pre Tax |
| Hospital Indemnity Insurance | Post Tax |
| Medical Insurance | Pre Tax |
| Medical Insurance Post Tax | Post Tax |
| Parking Commuter Benefits - Post Tax | Post Tax |
| Parking Commuter Benefits - Pre Tax | Pre Tax |
| Personal Use of Company Car | Post Tax |
| Roth 401k - Catch-up | Post Tax |
| Roth 401k - Standard | Post Tax |
| Roth 403B - Catch-up | Post Tax |
| Roth 403B - Standard | Post Tax |
| Roth IRA | Post Tax |
| Roth IRA - Catch-up | Post Tax |
| Simple IRA - Catch-up | Exempt from income tax withholding |
| Simple IRA - Standard | Exempt from income tax withholding |
| Traditional IRA | Exempt from income tax withholding |
| Traditional IRA - Catch-up | Exempt from income tax withholding |
| Transit Commuter Benefits - Post Tax | Post Tax |
| Transit Commuter Benefits - Pre Tax | Pre Tax |
| Vision Insurance | Pre Tax |
| Vision Insurance Post Tax | Post Tax |
| Vol/Supplemental LTD Insurance | Post Tax |
| Vol/Supplemental STD Insurance | Post Tax |
Learn More
- Which earning categories are not included in 401k percentage calculations?
- How do I customize and confirm pay types to finish my Zenefits Payroll setup?
- What types of deductions and contributions does Zenefits Payroll support?
- How do I create new deductions types in Zenefits Payroll?
- How do I create new contribution types in Zenefits Payroll?
- How do I add bonuses, commissions or other types of earnings to Zenefits Payroll?