Setting up pay types

A pay type, also known as a settlement type, is any of the following:

  • An item that is considered a taxable earning

  • A reimbursement

  • An item that may be deducted from a resource’s pay

The setup of a pay type determines the following:

  • How pay details created with the pay type are calculated (for example, whether the amount will be based on distance, percent of revenue, weight, a flat dollar amount, and so on)

  • General Ledger (GL) numbers to be passed to third-party accounting systems

  • Whether pay details created with the pay type are considered taxable (or, for deduction, pre-tax)

  • Whether reasonability checking will be performed for pay details created with the pay type

  • Whether non-system administrators have the authority to delete certain kinds of pay details, such as cash advances or fuel purchases

playbutton See it in action

Pay types are categorized as primary or secondary.

A primary pay type is used for line haul pay. Examples include:

  • Route Pay (mileage-based pay)

  • Flat

  • Trip Settlement (Revenue) (used for line haul pay based on a percent of line haul revenue)

  • Hourly Pay

A secondary pay type is used for accessorial pay (for example, add-on or extra pay), deductions, or reimbursements. Examples include:

  • Stop Pay

  • Loading or Unloading

  • Detention

  • Toll Reimbursement

  • Escrow

In TMW Operations, you use the Pay Type Maintenance feature to create, edit, and delete pay types. To access this feature, go to Tools > Setup > Pay Type Maintenance.

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If the pay type is retired, you must activate it. The system does not allow you to manually clear the Retired checkbox in the Pay Type Flags section of the Main tab. You must use a SQL statement. Contact Support for more information.

The Basis Unit, Rate Unit, and Unit fields determine how the system calculates the pay. Entries in all three fields must be in agreement with each other. The following table shows examples of agreement.

Unit Basis Unit Rate Unit

Miles, Kilometers

Distance

$/Mile; $/Kilometer

US Dollars; CAN Dollars

Revenue

$/Dollar

Flat

Flat

Flat

Hours, Days

Time

$/Hour; $Day

Pieces, Cases, Boxes, Pallets, Slips, Coils

Count

$/Piece, $/Case, $/Box, $/Pallet, etc.

Pounds, Tons, Metric Tons

Weight

$/100 lbs; $/Pound; $/Ton

Gallons

Volume

$/Gallon