Open topic with navigation

Payroll Mode Codes

Details

Payroll Mode Codes define pay processing parameters. The Payroll Mode Codes Table can be accessed through the Administrator program.

The dollar amount of an employee's pay rate in the Pay Amount field should be based on the selected Payroll Mode code.

Regardless of Pay Group assignment, the Payroll Mode selected for the employee determines taxation. See an employee's Payroll Mode on the employeeMaster record.

Business Scenario

A calendar year is starting where the number of annual payrolls for the biweekly pay group will be 25 instead of 26. Prior to beginning pay entry for the first payroll of the year, and per affected client, an administrator goes to the Payroll Mode Codes Table through the Administrator program, and edits the number of annual payrolls for the appropriate biweekly payroll modes to be 25, and saves.

The next year, when there will be 26 payrolls, the administrator changes this again prior to beginning pay entry for the first payroll of the year.

Examples

The Payroll Mode Code can be dissected into two parts: pay frequency and pay amount mode.

Bi-Weekly and Hourly

BIWEEKHOUR is for a bi-weekly pay frequency and an employee with an hourly pay amount, such as $10. BIWEEKHOUR normally has the following:

• Annual payrolls often are defined to tax on 26 pay periods, since 52/2 = 26 pay periods. A Payroll Service Representative can adjust this based on where the check dates are within the year.
• Pay frequency is biweekly, so the Pay Period Hours should have 80.00 entered.
• Pay amount mode is Hourly, so Pay Mode Period Hours field should have 1.00 entered.

Bi-Weekly and Bi-Weekly (Every Two Weeks)

BIWEEKLY is for a bi-weekly pay frequency and an employee with a bi-weekly pay amount such as $1,000. BIWEEKLY normally has the following:

• Annual payrolls is typically defined to tax on 26 pay periods, since 52/2 = 26 pay periods.
• The pay amount mode is biweekly. Since bi-weekly pay amounts are for two weeks of pay and a full-time week is 40 hours, the "pay mode period hours" for biweekly equals 80 hours. The Pay Mode Period Hours field has 80.00 entered.
• Pay frequency is biweekly, so the Pay Period Hours has 80.00 entered.

Weekly and Hourly

WEEKHOUR is for a weekly pay frequency and an employee with an hourly pay amount.  WEEKLY normally has the following:

• The number of Annual Payrolls is defined as 52 because there are 52 weeks are in a year.
• Pay amount mode is hourly, so the Pay Mode Period Hours field has 1.00 entered.
• Pay frequency is weekly, so the Pay Period Hours field has 40.00 entered.