What is an addition heading?

Updated 06 November 2023 10:33

Adjustment Headings are Payment (Addition) and Deduction headings. In order to record Payments and Deductions on a payslip, Cintra iQ allows you to set up adjustments in different categories. The category used determines how the payment or deduction heading is used. You can flag, within each adjustment heading, to say it is taxable, NIable etc.

You can attach calculations to adjustment headings so rates etc. can be calculated automatically. This is performed using Expressions and Functions and could be used for calculating overtime rates etc.

Each Addition Heading falls into of a number of categories – each category having their specific processing features:

About the Addition Headings window

Go to Cintra iQ: Payroll> Payroll Setup> Adjustments> Addition Headings

Within the Addition Headings window you can perform the following:

Create a new Addition Heading definition.
Open an existing Addition Heading definition.
Delete an Addition Heading definition.
Report on the Addition Headings.

Categories

Name	Description
Ad Hoc Payments	These can be cash or units multiplied by a rate. For Ad Hoc monetary amounts no annual or standard values are held in the system for monetary values or units. These are used for variable input only by pay period. No standard rates or values are held for an employee. Examples of these additions would include variable expenses and one-off cash adjustments such as back-pay. For any cash values that you want to be able to input variable amounts in periodic input or imported via a batch you will need to create an Ad Hoc Payment.
Employee in Post Payments	These additions are related to a contract or post that an employee occupies so would include overtime based on a salary of the post, for example. Standard amounts can be held by the addition heading or conditional functions can be applied to derive values based on a formula. You can also enter specific values to employees in the post. This is the most commonly used addition heading as it relates to any amount that is paid for an employee because they occupy a post. For this type of heading if an employee has differing rates in a period – this category must be used. If we need payslip to show Basic rate but we want the same heading to be used with units of variable rates, then use this Ad Hoc heading. When values are input to an employee for this type of adjustment the post to which an employee is appointed can be selected to record the value against. This may be important for reporting or costing purposes. Where a conditional function has been used for a heading relating it to another heading then this other heading will need to be active against the employee before the related heading will activate. You do not add these adjustments to employees as they will automatically be activated by the adjustment referenced in the function. Example: A spinal salary related to a formula producing a rate held in the employee Payments/Rates form is shown below. Here the Sal Offshore name has been used to refer to a spinal column value for this post and the adjustment COTA/RMT OT uses a conditional function to generate an hourly rate: At periodic input time the derived rate can be overridden if required.
Employment Standard Payments	These additions relate to payments that are not related to an employee’s post. Example: First Aid relates to an employee whichever post they hold. Another example would be Occupational Maternity Pay where an employee is entitled to this regardless of the post they hold. Another example could be Childcare Vouchers where standard or period related values want to be added to an employee. Standard values can be held on the adjustment and can be applied to any employee that the adjusted is added or standard values can be added at employee level. In the First Aid example, a standard annual amount of £500 has been applied to this employee. The FTE can be enabled, as here, where this employee is full time. In the Occupational Maternity Pay shown below, the addition heading has been set up with no standard values but you can see the employee Payments/Rates input allows date related input which will be activated in the relevant periods:
Grade Payments	More more information about Grades, see What are Grades and Pays Spines?
Mileage Claims	If you are using your own car for company business, you can claim for mileage expenses. The mileage claim heading is used if you are using the Mileage Claim setup. For more information, see How Do I Enter Mileage Claims for Employees?
Occupational Sick Payments	These are payments that are used by the Occupational Sick Pay Scheme functionality. It may be that just one name is used for everyone in the employment or it may be that you want to use different names for different sick pay schemes with different sets of rules in terms of entitlement. Unless your costing determines different logic with different schemes it is easier just to have one name. If OSP functionality is not used then these headings can be used at variable input to enter Sick Pay values either as cash amounts or units times a rate.
Period Payment Function	These headings are attached to the pay period calculation in order produce a final payroll calculation for the specified period. If you are calculating 10% of an employee's net pay, you attach that to the Period Payment Function heading. The function would take the net pay in the period, multiply by 01, and that function will be attached to the payment heading so then that would just happen automatically. It does not have to be re entered each month.
Post Specific Payments	These are additions that can be added to Posts so that anyone occupying this post will derive this addition. Any standard values are held at the post level and depending on the periodicity of the payroll the correct standard periodic value should be completed. Again the FTE functionality can be used. In the following example on a monthly payroll the rate of 125 will be multiplied by the unit value of 1.75 and then this will be multiplied by the FTE of the employee in this post. An example of where this could be used is London Waiting that is attached to all relevant posts.
Salary Sacrifice	These headings are Benefit Scheme addition heading for childcare, cycle to work, pensions etc. Salary Sacrifice is a negative payment that would go through on the payroll and is calculated before tax and national insurance.
Spine Point Additions	These headings are payroll entries that are specific to a spine point.
Spine Point Salary (via Grade)	Pays you via your grade level. Your Spine Point table is a list of salary values. The Grade table would say which From and To range is for a specific grade. These headings are used as a Grade payment on a Grade History form) or if it is used via the Post. They are both used the same way. Note: Spine Point Salary (via Grade) headings are not available if the Spine Point Salary (via Post) category is set up at implementation.
Spine Point Salary (via Post)	These headings are used in relation to Pay Spines, which are set up independently. You must have an adjustment heading set up before you set up a Spinal Column Table so that the default heading can be used. You can select the heading from the Pay Salaries Using Heading drop-down list. Note: This heading can be overridden in the employee's Post History using the Spine Point Salary Paid As drop-down list. Note: Spine Point Salary (via Post) headings are not available if the Spine Point Salary (via Grade) category is set up at implementation.

Buttons

Use the following buttons to perform various tasks.

Name	Description
New	Click this button to create a new Addition Heading.
Open	Click this button to open an existing Addition Heading.
Delete	Click this button to delete an Addition Heading.
Report	Click this button to create an Addition Headings Report.

About the New Addition Heading Form

The New Addition Heading form appears once you have clicked the New button in the Addition Headings window.

Name	Description
Name	Enter a unique name to identify the Addition Heading. You can also specify an Import Code against a heading if you want to import units and values from spreadsheets using codes rather than the payment(Addition) heading name.
Reporting Group	Select the Reporting Group that you want to show in this heading. These groups are created in Payroll> Payroll Setup> Adjustments> Reporting Groups.
Category	Select the category as described in the About the Addition Headings window section above.
Addition Type	Monetary Amount This Addition Type is the amount that you enter. e.g. £100. Units Times Rates This Addition Type is the number of units an employee has worked multiplied by a particular rate. e.g. 10 hours of over time at £10/hr.

What are the money amount details?

One you have selected the Monetary Amount as the Addition Type in the New Addition Heading form, the Category window appears. This is where you set the details of the Payment that will be used to calculate the payroll.

Main Settings tab

General
This is where you can expand on the Addition Heading's name.

Name	Description
Addition Name	The Additions Heading's name is automatically entered.
Description	Describe the Heading for your own internal purposes

Amounts

If applicable, this is where you can choose if the Addition Heading has standard values, is derived from a conditional function or is the value entered at employee level.
Note: The Amounts section does not apply to categories such as Ad Hoc, Mileage Claims, Occupational Sick Payments, Post Specific Payments, Salary Sacrifice, Spine Point in Salary (via Grade), Spine Point Salary (via Post).

Specify standard values
Standard values can be specified as Annual Values or Periodic Values where you specify each periodicity, not an individual employee. When the rate changes, you change this once on the heading.
Amounts specified Annually
Annual Values are pro-rated by the periodicity and the FTE (as default). Once selected, click on the Annual Values button. You are then asked to enter a From and To date and the Annual Amount.
Amounts specified by Periodicity
Periodic values allow you to specify exactly by period how much is to be added and this will be then pro-rated by the FTE (as default). Once selected, click on the Period Values button. You are then asked to enter a From and To date and the Annual Amount.
Amounts specified per employee
This is where you enter the amount for an individual employee not a period. When the rate changes, the amount must also be changed for every employee on the Payment form.
Amounts derived by Function
This amount is derived by a function that the user has created. If you are using a conditional function this is described in How Do I Create a Conditional Function?
Amounts derived by secondary function
The secondary function relies on information from the first function to derive the rate for this addition heading.
Use to evaluate final result

Payment

By fault, the Addition will be Payable, Taxable, NIable, pro-rated, subject to FTE and printed on the payslip. You can alter any of these defaults in the existing Addition Headings or create a new Addition Heading.

Addition is Paid
Check this to pay the Amount. Unchecked is used when you want to use a notional pay for e.g. Pensions, to calculate fictitious pay. If you say Unpaid, you are going to get the amount going through your pay slip to boost your pension contribution. You are not actually getting that amount. It is an unpaid payment.
Addition is NIable
The Addition is subject to employee national insurance contributions.
Addition is Employer Niable
The Addition is subject to employee national insurance contributions.
Addition is Taxable
The Addition is subject to Tax.
Addition is Arrestable Earnings for AOE purpose
Is this going to be included in the amount to make sure you are over the limit to pay e.g. Council Tax, or checking to see you are not above any protected earnings.

Other tab

General

Addition can be pro rata'd
If you were a mid month starter and you were getting a salary, select this option so that amount can be Pro rata'd. It will be Pro rata'd by your start date or your leave date.
Addition is subject to FTE
If you have a Full Time Equivalent salary on an employee's payments and rates form and they only have a .5 contract, do you want to pay .5 of the salary if it is subject to FTE. Points are the contracts that you are working except 1:1 = Full Time. Salary and Car allowance is subject to FTE.
Addition is paid in Holiday Weeks
Used for Weekly payroll. e.g. If you were paying First Aid allowance £2.50/week. If you are on holiday, is that paid during your holiday weeks.
Addition increases pay for National Minimum Wage calculation
To check that you've been paid above National Minimum wage.
Addition is Overtime
Related to LGPS and Teachers Pension. You don't have to pay overtime if Addition is Overtime is checked.
Gender Pay Gap Classification
Whether the payment heading is Ordinary pay or Bonus pay or nothing. When you do your Gender Pay Gap calculation extract, the Ordinary and Bonus pay is analysed. You need to select a heading if the payment falls into one of those categories.

Import

Import Code
When you import your ad hoc data, you can use payment codes instead of payment headings. eg Instead of saying overtime at time and a half, you could say it is code 100.

Costing

Costing Category
Is set up in Accounting> Cost Categories. You can attach a Payment Heading to a Cost Category in Accounting, or if you are creating a new heading, you can attach a Cost Category here.

Payslip

Addition is printed on Payslip
Check this option to print the Addition heading on the payslips.
Priority Display Order on Payslip Print
Enter the order in which the Addition heading is displayed on the payslip.

Pension

Name	Description
Is Qualifying Earnings for Auto Enrolment Assessment	Check this option to confirm the Qualifying Earnings are for Auto Enrolment.
Trivial Commutation Type	You can select which type of small pension you would like to convert into a one-off cash payment.
Flexible Pension Payment	Check this option to make voluntary contributions to acquire, or improve, secondary benefits such as ambulance transportation, blood, drugs and medical supplies like bandages expenses etc.
Death Benefit Drawdown	Check this option if the Death Benefit is going to be reinvested into a Drawdown pension fund to give a regular pension income instead given as a lump sum.

Connect Cubes Mapping

Connect Cubes Map (Amount)
Select the Connect Cubes map, which will export the payment amounts attached to your Addition Heading.
Connect Cubes Map (Units)
Select the Connect Cubes map, which will export the payment units attached to your Addition Heading.

Timesheets

Linked Attendance Category
You can attach an Attendance Category to the Addition Heading that is linked to a Timesheet.

What are the unit and rates details?

One you have selected the Units Times Rates as the Addition Type in the New Addition Heading form, the Category window appears. This is where you set the details of the Payment that will be used to calculate the payroll.

Main Settings tab

General

This is where you can expand on the Addition Heading's name.

Name	Description
Addition Name	The Addition Heading's name is automatically entered.
Description	Describe the Addition Heading for your own internal purposes.
Unit Name

Units and Rates

Name	Description
Units are Ad Hoc	Select this option to process the units as ad hoc.
Specified Standard values	Standard values can be specified as Annual Values or Periodic Values where you specify each periodicity, not an individual employee. When the rate changes, you change this once on the heading.
Rates derived by Conditional Function	This rate is derived by a function that the user has created. If you are using a conditional function this is described in How Do I Create a Conditional Function?
Condition Function	Select the Conditional Function.
Values specified per employee

Payment

Name	Description
Addition is Paid	Check this to pay the Amount. Unchecked is used when you want to use a notional pay for e.g. Pensions, to calculate fictitious pay. If you say Unpaid, you are going to get the amount going through your pay slip to boost your pension contribution. You are not actually getting that amount. It is an unpaid payment.
Addition is NIable	The Addition is subject to employee national insurance contributions.
Addition is Employer Niable	The Addition is subject to employee national insurance contributions.
Addition is Taxable	The Addition is subject to Tax.
Addition is Arrestable Earnings for AOE purpose	Is this going to be included in the amount to make sure you are over the limit to pay e.g. Council Tax, or checking to see you are not above any protected earnings.

Other tab

Addition is paid in Holiday Weeks
Used for Weekly payroll. e.g. If you were paying First Aid allowance £2.50/week. If you are on holiday, is that paid during your holiday weeks.
Addition increases pay for National Minimum Wage calculation
To check that you've been paid above National Minimum wage.
Addition is Overtime
Related to LGPS and Teachers Pension. You don't have to pay overtime if Addition is Overtime is checked.
Addition counts towards GPG weekly hours
Addition check against minimum wage level
You can check whether an employee is paid an hourly rate lower than the statutory minimum wage by setting the desired Units & Rates addition heading to check for minimum wage levels.
If you calculate someone and depending on their age, they happen to have a rate on their payslip for that addition heading that is below their legal minimum, an exception is generated.
Gender Pay Gap Classification
Whether the payment heading is Ordinary pay or Bonus pay or nothing. When you do your Gender Pay Gap calculation extract, the Ordinary and Bonus pay is analysed. You need to select a heading if the payment falls into one of those categories.

Holiday Pay

Calculate a [rate type] from average pay history.

Import

Import Code
When you import your ad hoc data, you can use payment codes instead of payment headings. e.g. Instead of saying overtime at time and a half, you could say it is code 100.

Costing

Costing Category
Is set up in Accounting> Cost Categories. You can attach a Payment Heading to a Cost Category in Accounting, or if you are creating a new heading, you can attach a Cost Category here.

Payslip

Addition is printed on Payslip
Check this option to print the Addition heading on the payslips.
Priority Display Order on Payslip Print
Enter the order in which the Addition heading is displayed on the payslip.

Working Time Directive

Include Hours in Working Time Directive (WTD) calculations

Pension - Auto Enrolment

Is Qualifying Earnings for Auto Enrolment Assessment

Connect Cubes Mapping

Connect Cubes Map (Amount)
Select the Connect Cubes map, which will export the payment amounts attached to your Addition Heading.
Connect Cubes Map (Units)
Select the Connect Cubes map, which will export the payment units attached to your Addition Heading.

Timesheets

Linked Attendance Category
You can attach an Attendance Category to the Addition Heading that is linked to a Timesheet.

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