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 MonthsSubject to income tax withholding only
3rd Party Sick Pay - First 6 MonthsFully taxable
3rd Party Sick Pay - Non-Taxablenon-taxable
Additional EarningsFully taxable
BonusFully taxable
CommissionFully taxable
Contractor Double Overtime HoursNon-taxable
Contractor Overtime HoursNon-taxable
Contractor Regular EarningsNon-taxable
Double Overtime HoursFully taxable
Group Term Life Imputed IncomeFully taxable
HolidayFully taxable
Non-Taxable AllowancesNon-taxable
Overtime HoursFully taxable
Owners' DrawNon-taxable
Personal LeaveFully taxable
Regular EarningsFully taxable
ReimbursementNon-taxable
S-corp Health and DisabilitySubject to income tax withholding only
Sick LeaveFully taxable
VacationFully taxable

Deductions

Deductions 
401( k ) LoanPost Tax
401( k ) Retirement Plan - Catch-upExempt from income tax withholding
401( k ) Retirement Plan - StandardExempt from income tax withholding
403( b ) Retirement Plan - StandardExempt from income tax withholding
403( b ) Retirement Plan Catch-upExempt from income tax withholding
457 Retirement Plan - Catch-upExempt from income tax withholding
457 Retirement Plan - StandardExempt from income tax withholding
Accident InsurancePost Tax
Accidental Death and Dismemberment InsurancePost Tax
After TaxPost(After) Tax
Cancer InsurancePost Tax
Critical Illness InsurancePost Tax
Dental InsurancePre Tax
Dental Insurance Post TaxPost Tax
Flex Spending AccountPre Tax
Flex Spending Account DependentPre Tax
Garnishment Administrative FeePost Tax
Garnishment Remittance FeePost Tax
Group Term Life InsurancePost Tax
Health Savings Account (HSA) - Post TaxPost Tax
Health Savings Account (HSA) - Pre TaxPre Tax
Hospital Indemnity InsurancePost Tax
Medical InsurancePre Tax
Medical Insurance Post TaxPost Tax
Parking Commuter Benefits - Post TaxPost Tax
Parking Commuter Benefits - Pre TaxPre Tax
Personal Use of Company CarPost Tax
Roth 401k - Catch-upPost Tax
Roth 401k - StandardPost Tax
Roth 403B - Catch-upPost Tax
Roth 403B - StandardPost Tax
Roth IRAPost Tax
Roth IRA - Catch-upPost Tax
Simple IRA - Catch-upExempt from income tax withholding
Simple IRA - StandardExempt from income tax withholding
Traditional IRAExempt from income tax withholding
Traditional IRA - Catch-upExempt from income tax withholding
Transit Commuter Benefits - Post TaxPost Tax
Transit Commuter Benefits - Pre TaxPre Tax
Vision InsurancePre Tax
Vision Insurance Post TaxPost Tax
Vol/Supplemental LTD InsurancePost Tax
Vol/Supplemental STD InsurancePost Tax

Learn More

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