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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.