All Hours has a few preset categories of time such as physical presence, work at home, annual leave, etc.
See Settings >> Category Definitions
Each category can have a different presence status, paid status, and an icon that can be displayed on the Calendar.
The custom ID can be left empty.
Paid time status
Time will be counted as paid or unpaid.
NOTE: This does not affect the Paid Time settings Global Time Settings and individual Time Policies.
Example: setting the paid time window from 8 AM to 4 PM means time is only counted as Paid in during those hours. Time clocked outside those hours will still count as Unpaid.
Setting a category to Unpaid will count the time as Unpaid even during the paid time window.
When you setup a clocking event that starts a particular category, the Employee's presence status will reflect the settings from the Category.
Setting the Lunch category to a presence status of "Break" will show all employees currently clocking Lunch as being on a break on your presence widget:
NOTE: Only statuses that are used in your categories are shown on the presence widget.