Configuring Payroll Pay Items
Pay items in Beyond let you tailor the way employees are compensated. You also have the option to rename pay items and adjust the type of payment method to match your company’s needs.
Getting Started
Navigate to Company > Pay Items to begin.
Hourly vs. Non-Hourly
Each pay item will be categorized as either hourly or non-hourly. Select Non-Hourly if you prefer to enter a fixed amount during payroll runs. Common uses include bonuses, commissions, or reimbursements.
Types of Pay Items
There are four main categories of pay items:
- W-2 Wages
- 1099 Wages
- Non-reported
- Imputed / Other
W-2 Wages
This category covers traditional employee wages, which can be fully customized. For instance, if a worker performs two different roles with separate pay rates, you can create unique pay items for each. Once assigned, you can apply different pay rates as needed. At year-end, all W-2 wage types for the employee will be combined into their W-2 form.
1099 Wages
Contractors typically receive flat-rate payments for completed projects, so 1099 pay items default to non-hourly. Creating customized 1099 pay items makes it easy to track different types of jobs and agreed payment rates. Similar to W-2s, all 1099 payments received throughout the year are added together and appear on a contractor’s year-end 1099 form.
Non-Reported
Non-reported pay items allow you to provide funds to employees without tax reporting or year-end documentation. These are often reimbursements, like mileage or cell phone expenses. Because they aren’t included in W-2s or 1099s, they are treated as operating expenses in your accounting records rather than payroll expenses.
Imputed / Other
This section is reserved for more specialized payroll items designed for unique situations.
Examples of imputed pay include:
- Personal use of a company car
- Employee product or service discounts
- Adding a non-dependent or domestic partner to health insurance coverage
- Adoption assistance above the tax-exempt limit
- Dependent care benefits exceeding the allowable tax-free amount
- Group-term life insurance coverage beyond $50,000
- Tuition reduction or educational assistance
- Non-deductible moving reimbursements
- Fitness or gym membership perks
- Health insurance for shareholders owning more than 2%
For example, Shareholder Insurance is a pay type intended for more-than-2% shareholders whose insurance benefits are covered by the company. While labeled “insurance,” it can apply to any taxable fringe benefit received by these shareholders. Payments made through this item are taxable for federal and state income tax, but not subject to payroll tax.
Need Help?
If you still have any questions, please don’t hesitate to reach out. Our team will be happy to provide answers and assist you in any way we can.