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Best practices for naming pay rates

When creating pay rates, it’s important to use titles that clearly describe how each rate is used in payroll, rather than naming them after job roles.

Rachel Fisch avatar
Written by Rachel Fisch
Updated over a month ago

Recommended naming approach

Use descriptive, functional titles that reflect the purpose of the rate, such as:

  • Regular

  • Salary

  • Overtime

  • Holiday

  • Bonus

  • Commission

Avoid using employee-specific terms like “Technician,” “Manager,” or “Level 2.” These labels don’t explain what the rate is used for in payroll calculations or reporting.


Why this matters

Using consistent, functional rate titles helps:

  • ✅ Improve reporting clarity

  • ✅ Make payroll easier to review and reconcile

  • ✅ Prevent confusion when multiple employees have similar job roles

  • ✅ Maintain cleaner records over time, especially as pay structures evolve

Disclaimer: This article is not intended to provide tax, legal, benefits, financial, or HR advice. Since laws and regulations are subject to change and may differ by location, please consult a legal or HR professional for personalized guidance.

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