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Pay Group Codes
A pay group is a set of employees who are employed by
the same company and are paid on the same schedule.
Pay groups are one per employee and one per payroll calendar.
- Each employee belongs
to one and only one pay group. A pay group applies a payroll schedule
to an employee through payroll calendars. Pay group codes have a selected
pay frequency.
- Each payroll calendar
pays one and only one pay group.
- Each pay group
belongs to one company code. The company for the pay group should be the
company chosen for a payroll calendar. The company associates the payroll
with company-level net pay accounts and liability accounts.
- One company often
has multiple pay groups. Per client database, limit use of a particular
pay group code to one company code.
Business Scenario
Pay Groups
are established to separate
employees into different payroll-processing groups according to payroll
policy differences, such as the following:
- Different payroll
cycles (different pay groups required)
- Different pay frequencies,
such as weekly, bi-weekly, or monthly (requires
different pay groups)
- Exempt and non-exempt
employees (optionally separate by pay group)
- Hourly and salaried
employees (optionally separated by pay group)
- Union and Non-Union
employees (optionally separate by pay group)
- Executives and
non-executives (optionally separate by pay group)
- Tax Exempt and
Non-Exempt employees (optionally separate by pay group)
An employee number is assigned to a single Pay
Group on the Payroll tab within the Time Master or the Compensation
tab within the Employee Master. The selected Pay
Group associates the employee with a Company and pay frequency. One employee number can only belong
to one pay group at a time.
For instance, if a pay group for weekly
and a pay group for monthly exist
for a company, and a new salesperson earns a weekly salary plus a monthly
commission, the weekly Pay Group would be selected.
On the employee's
Earnings Detail record for commissions, select only one of the Payroll
Periods to process for the commission. A separate check code may
also be used to pay the commissions.