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Jane Payroll: Pay Types FAQ

  1. Payroll
  2. Jane Payroll: Pay Types FAQ

    3. 9 min read
Jane Plan: Legacy, Practice, and Thrive
Add-on Required: Yes – Jane Payroll
Geography: Available in: 🇨🇦 Canada only

Can a staff member have more than one Pay Type?

Yes. Many clinics have staff who are paid in more than one way. For example, a staff member might earn Hourly Compensation for admin hours and Fee Split Compensation for client sessions. When you run payroll, both Pay Types appear as separate columns and you can enter the right values for each.

To assign an additional Pay Type, go to the Staff tab, select the staff member, click Payroll, click Edit next to Pay Types, and click Add Pay Type.

How should I set up a commission or service split Pay Type?

If your practitioners earn a percentage of invoiced or collected billings, the Pay Type you choose depends on how you want to report this income to the CRA at year-end.

  • Fee Split Compensation (most common): use this if you want the income treated as regular employment income. At year-end, income reports in Box 14 of the T4 for employees and Box 48 on the T4A for contractors.
  • Performance-based Commission (less common): use this if you want the income reported as commission earnings. At year-end, income reports in Box 14 with code 42 of the T4 for employees and Box 20 on the T4A for contractors.

Once you've confirmed which Pay Type applies:

  1. Go to Billing > Payroll > Account > Pay Types.
  2. Click Edit, then + Add Pay Type.
  3. Select your Pay Type (for example, Fee Split Compensation).
  4. Give it a clear, descriptive name like "Service Split Compensation." This is what staff will see on their pay stubs.
  5. Click Save.
  6. Assign it to the relevant staff members via the Staff tab > select the staff member > Payroll > Pay Types.

When running payroll, open your Compensation Report in another tab and enter each practitioner's totals into Jane manually. Jane doesn't pull these numbers in automatically.

How should I set up hourly staff?

For admin or support staff paid by the hour:

  1. Go to Billing > Payroll > Account > Pay Types.
  2. Click Edit, then + Add Pay Type.
  3. Select Hourly Compensation.
  4. Give it a clear name like "Admin (Hourly)" or "Front Desk (Hourly)."
  5. Click Save.
  6. Assign it to each relevant staff member in their staff profile and enter their hourly rate.

If a staff member earns different hourly rates for different types of work (for example, one rate for admin work and one for bookkeeping), create two separate Pay Types using the Hourly Compensation default, each with its own name and rate.

🩵 Jane Tip: If you don't have one default hourly rate for all staff, leave the default rate blank and set each person's rate directly in their staff profile when assigning the Pay Type.

What Pay Type should I use for HST or GST amounts?

Use the Reimbursement Pay Type for HST or GST amounts collected by contractors. This shows the year-to-date amounts on pay stubs but doesn't report them on T4As at year-end, since they're not income.

To set it up:

  1. Go to Billing > Payroll > Account > Pay Types.
  2. Click Edit, then + Add Pay Type.
  3. Select Reimbursement.
  4. Customize the name to "HST amounts" or "GST amounts."
  5. Click Save.
  6. Assign it to the relevant contractors in their staff profiles.

What is an Owner's Draw and how do I set it up?

Owner's Draw is a Pay Type for clinic owners who want to pay themselves through Jane Payroll. It doesn't withhold CPP, EI, or income tax, and it isn't reported as income on year-end tax forms. Owners manage this themselves at tax time.

How you set it up depends on whether you're a sole proprietor or incorporated. We recommend checking with your accountant to confirm the right setup for your situation.

To create the Owner's Draw Pay Type:

  1. Go to Billing > Payroll > Account > Pay Types.
  2. Click Edit, then + Add Pay Type.
  3. Select Owner's Draw.
  4. Customize the name based on your needs (for example, "Owner's Draw" or "Dividend").
  5. Click Save.
  6. Assign it to your staff profile. When assigning it, you can enter a default amount that auto-fills each payroll run. You can still adjust it if you want to draw more or less in a given period.

How do I set up dividends?

Use the Owner's Draw Pay Type for dividend payments. It doesn't withhold CPP, EI, or income tax and isn't reported as income on year-end forms. You'll manage dividend reporting yourself at tax time.

To set it up:

  1. Go to Billing > Payroll > Account > Pay Types.
  2. Click Edit, then + Add Pay Type.
  3. Select Owner's Draw.
  4. Customize the name to "Dividend."
  5. Click Save.
  6. Assign it to your staff profile.

We recommend using the name "Dividend" consistently in Jane, in your own records, and with your accountant to keep everything clear.

Can I rename a Pay Type after it's been created?

It depends on how the Pay Type was created and whether payroll has been run with it.

  • If you created a custom-named Pay Type and haven't run payroll with it yet, you can rename it freely.
  • If you created a custom-named Pay Type and have already run payroll with it, renaming it will create a separate line on your staff's pay stubs going forward.
  • If you used one of Jane's system defaults without customizing the name and then ran payroll with it, the name is permanently locked and can't be changed.

This is why we recommend creating custom-named versions of each Pay Type before your first payroll run.

Why are there so many Pay Type defaults?

Each Pay Type reflects a specific kind of payment with different tax implications. Having distinct options ensures the right deductions are applied automatically and income is reported correctly at year-end.

You don't need to use all of them. Review the list, choose the ones that match how you pay your team, and create custom names so your staff sees something clear and familiar on their pay stubs. If you're not sure which default to use, reach out to the payroll support team at [email protected].

Can Pay Types link automatically to the Compensation Report or Timesheets?

Not at this time. Pay Types don't automatically link to the Compensation Report or Timesheets.

  • For hourly staff, you'll enter each staff member's rate when you assign their Pay Type. When you run payroll, you'll enter the number of hours worked and Jane will calculate their pay.
  • For salary, once you've entered a staff member's salary rate, Jane calculates their pay automatically each period.
  • For commissions or Timesheets-based pay, you'll need to run those reports separately in Jane and enter the totals manually during each payroll run.

Why can't I edit my Pay Type?

There are two common reasons this happens:

  • You're using a system default without a custom name. Jane's built-in defaults can't be renamed. To use your own naming, create a new Pay Type and give it a custom name when you set it up.
  • You have a payroll run in progress. If you've started a payroll run (even just to preview it), that counts as an in-progress payroll. Delete the in-progress payroll run, refresh the page, and you'll be able to edit your Pay Types again.

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