In the top right, under Settings, click
Categories.
In the pop-up, click + Add New Category.
Type in a name for the category in the blank space.
Select whether this category is for just Parents, just Employees, or All.
Click + Add New Sub-category under the category you just created.
Type a name for the sub-category in the blank space.
Click on the coloured square to select a colour for this sub-category.
Click Save.