Understanding Pay GroupsThis chapter provides overviews of pay groups and proration rules and discusses how to set up pay groups.
Understanding Pay GroupsThis section discusses:
Purpose and function of pay groups.
Default pay group for the company.
Checklist for identifying pay groups.
How the Pay Group table affects paysheets.
Purpose and Function of Pay Groups
When you implement Payroll for North America, a major decision you have to make is which pay groups to define. A pay group is a logical grouping of employees based on shared characteristics that facilitate payroll processing because of common requirements such as employee type, pay frequency, same country location, and so on. A pay group consolidates a set of employees within a company for payroll processing. When you run the Create Paysheet COBOL SQL process (PSPPYBLD), the system processes one pay group at a time. At this point, the system verifies that the company and pay group assigned on the employee job data match the company and pay group specified for the payroll run.
Other reasons for defining multiple pay groups are:
If you print checks or advices on more than one print stock, you must create a separate pay group for each print stock that you use.
If the organization has both U.S. and Canadian employees, you must set up a separate pay group for each.
If paysheets and checks are printed in different sort sequences, you need a separate pay group for each sequence.
Default Pay Group for the Company
When you first add a pay group, you're prompted for a company ID and pay group ID. The company ID is a key field on the pay group table, implying that all employees in a pay group are also in the same company. For the pay group ID, use any three-character alphanumeric ID that conforms to your payroll standards.
There is no limit to the number of pay groups that you can define for a company. You might need only one, or more likely, several pay groups to accommodate the different payroll schedules that you have.
After you define all the valid pay groups for a company, you must return to the Company Table - Default Settings page, to assign a pay group default. Typically, that default should be the most common pay group for the company. Employees assigned to that company in their Job data are set by default to the pay group established for that company and the employee type established for that pay group.
Checklist for Identifying Pay Groups
As you define pay groups, use this checklist to verify that the employees you're grouping together should be in the same pay group. All employees:
Belong to the same company.
Are paid at the same pay frequency.
Use the same check form or direct deposit advice form.
Have the same check date.
Share the same pay period begin and end dates.
Work in the same country.
Are paid by the same bank.
Are assigned the same work schedule for proration.
Are assigned the same minimum net pay.
(USA) Are similarly affected by the Fair Labor Standards Act (FLSA) (FLSA either applies or does not apply to all employees).
If FLSA applies, all FLSA rules (FLSA Calendar ID and FLSA Salaried Hrs Use—for example) must be the same for all employees.
Are assigned to the same earnings program, the same retro pay program, and the same retro pay trigger program.
When processing payrolls, group multiple pay groups together only if they can be scheduled and completed concurrently.
Here is an example of setting up pay groups for a company:
|
Pay Group |
Description |
|
MO1—Monthly |
Employees who are paid monthly and share the same pay period, which ends on the last day of the month, can belong to the same pay group. Salaried employees at CCB are paid monthly. |
|
SM1—Semimonthly |
Employees who are paid semimonthly, and share the same pay periods (ending on the 15th and last day of the month) can also belong to the same pay group. Exception hourly and hourly employees at CCB are paid semimonthly. |
This diagram shows an example of pay group setup for salaried, exception hourly, and hourly employees:
Example of pay group setup for salaried, exception hourly, and hourly employees
See Also
Creating Pay Calendars and FLSA Calendars
How the Pay Group Table Affects Paysheets
When you enter regular hours, overtime hours, or regular earnings on paysheets, the system refers back to the Pay Group table to determine the earnings code for regular hours, overtime hours, and regular earnings. Under other earnings, the system automatically generates entries for any holiday pay using the holiday earnings code specified on the Pay Group table.
See Also
Understanding Proration RulesThis section discusses:
Proration rules.
Proration examples with delivered frequencies.
Proration examples with nondelivered frequencies.
Proration Rules
An employee is considered eligible for partial pay whenever a Job record has an effective date in the middle of a pay period. Typically, this happens whenever you hire, terminate, transfer, or change the rate of pay for an employee in the middle of a pay period.
On the Pay Group Table - Paysheets page, you select a proration rule to be applied to salaried workers and a proration rule to be applied to hourly or exception hourly workers. The rule that you select in each category determines how earnings and hours are prorated during paysheet creation for employees eligible for partial pay.
Whenever the system encounters a Job record causing partial pay, it applies one of these proration rules, depending on the employee type, and creates a separate pay earnings record with the corresponding hours or earnings for each partial period. Each proration method uses the work schedule specified for the pay group on the Pay Group Table - Paysheets page to determine the number of work days in the partial period, and then calculates the associated hours or earnings.
Additional data used to calculate hours and earnings in a prorated pay period include:
Standard hours defined on the Job Information page in the employee's job data.
The annualization factor of the work period frequency defined on the Job Information page in the employee's job data.
The annualization factor of the pay period frequency entered on the Pay Group - Definition page.
The annualization factor of the daily frequency entered on the Pay Group - Definition page.
Each proration rule uses some, but not all, of these additional factors.
Proration Rule Formulas
This table lists the formulas used to calculate proration:
|
Proration Rule |
Calculation Formula |
|
Salaried – Percent of Annual |
Work Days × Annual Pay Rate / Work Days per Year |
|
Salaried – Rate per Work Day |
Work Days × Hours Per Day × Hourly Rate |
|
Salaried – Percent of Period |
Work Days × Pay Period Compensation Amount / Total Work Days in Pay Period |
|
Hourly – Work Days |
Work Days × Hours Per Day × Hourly Rate |
|
Hourly – Percent of Period |
Work Days × Hours in Period × Hourly Rate / Total Work Days in Pay Period |
This table defines the variables in the proration rule formulas:
|
Proration Rule Variable |
Definition |
|
Work Days |
The number of days worked that correspond to the effective-dated action on the employee's job record, such as a mid-period pay rate change. Work days are specified in the Work Schedule field on the Pay Group table. |
|
Work Days per Year |
The system calculates work days per year based on the number of work days defined in the work schedule on the Pay Group table. For example:
Note. Custom daily frequencies do not affect the calculation of Work Days per Year. |
|
Hours Per Day |
The employee's standard hours in Job data times the annualization factor of the work period in Job data divided by the annualization factor of the daily frequency on the Pay Group table. |
|
Hourly Rate |
The employee's hourly compensation rate in Job data. |
|
Total Work Days in Pay Period |
Based on the work schedule on the Pay Group table and the pay period begin and end dates. |
|
Hours in Pay Period |
The standard hours in Job data times the annualization factor of the work period in Job data divided by the pay period frequency annualization factor. |
Important! If an employee is set up with any active job distributions (earnings distribution type is other than none) on the Job Earnings Distribution page, the system automatically calculates the proration—or partial pay—using percent of period, in place of any other proration rule that you might have specified on the Pay Group Table - Paysheets page.
Proration Examples with Delivered Frequencies
The examples in this section illustrate how the system applies salaried and hourly proration rules for mid-period pay rate changes using delivered frequencies.
Example Scenario
This table lists the relevant data in the employees' Job data:
|
Employee |
Employee Type |
Compensation Rate |
Compensation Frequency |
Standard Hours |
Work Period |
|
Mark |
Salaried |
Before: 1000 USD After: 1100 USD |
Semimonthly (annualization factor 24) |
40 |
Week (annualization factor 52) |
|
Jan |
Hourly |
Before: 10.00 USD After 11.00 USD |
Hourly (annualization factor 2080) |
40 |
Week (annualization factor 52) |
This table lists the relevant data on the Pay Group table:
|
Pay Frequency |
Daily Frequency |
Monthly Frequency |
Work Schedule |
|
S: Semimonthly (annualization factor 24) |
D: Daily (annualization factor 260) |
M: Monthly (annualization factor 12) |
NYYYYYN |
The examples involve one semi-monthly pay period of July 1 through July 15 as represented in this calendar:
|
S |
M |
T |
W |
T |
F |
S |
|
1 |
2 |
3 |
4 |
5 |
6 |
|
|
7 |
8 |
9 |
10 |
11 |
12 |
13 |
|
14 |
15 |
|
|
|
|
|
As defined by the work schedule on the Pay Group table, there are 11 workdays in the period July 1–15. On Monday July 8, all employees received a 10 percent pay increase. The respective pay rates are indicated as before and after in the compensation data listed in the activity scenario data. The following examples illustrate how Mark and Jan's pay would be prorated.
Note. The following examples assume that the employee's Earnings Distribution Type on the Job Earnings Distribution page is None.
Salaried – Percent of Annual
Work Days x Annual Pay Rate / Work Days per Year
5 Work Days × 24,000 USD / 260 = 461.54 USD
6 Work Days × 26,400 USD / 260 = 609.23 USD
Total Pay = 1,070.77 USD
Salaried – Rate per Work Day
Work Days × Hours Per Day x Hourly Rate
5 Work Days × 8 Hours per Day × 11.538462 USD per hour = 461.54 USD
6 Work Days × 8 Hours per Day × 12.692308 USD per hour = 609.23 USD
Total Pay = 1,070.77 USD
Salaried – Percent of Period
Work Days × Pay Period Compensation Amount / Total Work Days in Pay Period
5 Work Days × 1,000 USD / 11 Total Work Days = 454.55 USD
6 Work Days × 1,100 USD / 11 Total Work Days = 600 USD
Total Pay = 1,054.55 USD
Review of the Salaried Calculation Results
Reviewing the results of the proration rules above on salaried employee Mark, we find results vary from 1,070.77 USD to 1,054.55 USD. The prorated 1,070.77 pay is higher than the new pay rate of 1,100 per pay period, This overstated amount can be attributed to proration rules Percent of Annual and Rate per Day, which use factors Work Days per Year and Hours per Day that may vary per pay period compared to a fixed annual rate.
For example, a semimonthly pay period can have 9 to 12 actual Work Days per period compared to a fixed annualized 10.83 days (260 days a year / 24 periods a year). Using Percent of Annual depending on number of actual days per period (9 to 12 days) compared to annualized 10.83 days, the resulting pay period prorated rate may be under or over stated accordingly. Therefore, for semimonthly pay period, we recommend using the Percent of Period salaried proration rule. This holds true for monthly pay period also.
Note. For salaried employees paid on monthly or semimonthly pay period, it is highly recommended to use the Percent of Period salaried proration rule.
If the annualized factor is the same per pay period, for example weekly or biweekly pay period, then all the proration rules compute the same total earnings. For example, if Mark is paid biweekly, the prorated earnings are computed as illustrated in the following examples:
Salaried - Percent of Annual with Biweekly Pay Period
This example uses the same data presented in the example scenario with the exception of the pay period frequency. (The biweekly pay period covers only 10 work days).
Work Days x Annual Pay Rate / Work Days per Year
5 Work Days × 24,000 USD / 260 = 461.54 USD
5 Work Days × 26,400 USD / 260 = 507.69 USD
Total Pay = 969.23 USD
Salaried - Rate per Work Day with Biweekly Pay Period
This example uses the same data presented in the example scenario with the exception of the pay period frequency. (The biweekly pay period covers only 10 work days).
Work Days × Hours Per Day x Hourly Rate
5 Work Days × 8 Hours per Day × 11.538462 USD per hour = 461.54 USD
5 Work Days × 8 Hours per Day × 12.692308 USD per hour = 507.69 USD
Total Pay = 969.23 USD
Salaried - Percent of Period with Biweekly Pay Period
This example uses the same data presented in the example scenario with the exception of the pay period frequency. (The biweekly pay period covers only 10 work days).
Work Days × Pay Period Compensation Amount / Total Work Days in Pay Period
For a biweekly pay period, the Pay Period Compensation Amount = Annual Rate / 26
5 Work Days × (24,000 USD / 26) /10 Total Work Days = 461.54 USD
5 Work Days × (26,400 USD / 26) /10 Total Work Days = 507.69 USD
Total Pay = 969.23 USD
Hourly – Work Days
Work Days × Hours Per Day × Effective-Dated Hourly Rate
5 Work Days × 8 Hours per Day × 10 USD per hour = 400 USD
6 Work Days × 8 Hours per Day × 11 USD per hour = 528 USD
Total Pay = 928 USD
Hourly – Percent of Period
Work Days × Hours in Period × Effective-Dated Hourly Rate / Total Work Days in Pay Period
5 Work Days × 86.67 Hours / 11 workdays in the period = 39.3954 (which is rounded to 39.4) x 10 USD = 394.00 USD
6 Work Days × 86.67 Hours / 11 workdays in the period = 47.2745 (which is rounded to 47.27) x 11 USD = 519.97 USD
Total Pay = 913.97 USD
Review of the Hourly Calculation Results
Reviewing the results of the previous examples of the Work Days proration rule for hourly employee Jan, we find the total hours of 88 (8 hours x 11 days) does not add up to the total of 86.67 annualized hours for the semi-monthly period that the system calculates at paysheet creation. This can be attributed to Work Days proration rule using Hours per Day that may vary per pay period compared to a fixed annual rate.
For example, a semimonthly pay period can have 9 to 12 actual Work Days, giving 72 to 96 hours per pay period. This variation in actual work hours per period accounts for the difference in hours allocated compared to a fixed annualized 86.67 hours per biweekly period (2080 hours a year / 24 periods a year). Therefore, for semi-monthly, we recommend using the Percent of Period hourly proration rule. This holds true for a monthly pay period also.
Note. For Hourly and Exception Hourly employees paid on Monthly or Semi-monthly pay period, it is highly recommended to use Percent of Period Hourly Proration Rule.
If the annualized factor is the same per pay period, for example, a weekly or biweekly pay period, then all the proration rules compute the same total hours. For example, if Jan is paid biweekly, the prorated earnings are computed as illustrated in the following examples:
Hourly - Work Days with Biweekly Pay Period
This example uses the same data presented in the example scenario with the exception of the pay period frequency. (The biweekly pay period covers only 10 work days).
Work Days × Hours Per Day × Hourly Rate
5 Work Days × 8 Hours per Day × 10 USD per hour = 400.00 USD
5 Work Days × 8 Hours per Day × 11 USD per hour = 440.00 USD
Total Pay = 840.00 USD
Hourly - Percent of Period with Biweekly Pay Period
This example uses the same data presented in the example scenario with the exception of the pay period frequency. (The biweekly pay period covers only 10 work days).
Work Days × Hours in Period × Hourly Rate/Total Work Days in Pay Period
Hours in Period is 80 (2080 hours a year / 26 periods a year)
5 Work Days × 80 Hours × 10 USD / 10 Work Days in Pay Period = 400.00 USD
5 Work Days × 80 Hours × 11 USD / 10 Work Days in Pay Period = 440.00 USD
Total Pay = 840.00 USD
See Also
Proration Examples with Nondelivered FrequencyThe previous examples employed PeopleSoft-delivered frequencies, which are based on a standard 40-hour, 5-day workweek. The examples in this section illustrate how the system applies salaried and hourly proration rules for mid-period pay rate changes when the daily frequency is defined for a 40-hour, 3-day workweek.
In the example of a 40-hour, 3-day week, the annual number of workdays is 3 × 52 = 156. On the Frequency table, a nonstandard daily frequency must be defined with the annualization factor of 156. This frequency must be assigned on the Pay Group table.
The Hours per Day is derived by taking the employee's standard hours in Job data times the annualization factor of the work period in Job data divided by the annualization factor of the daily frequency on the Pay Group table. In the example of a 40 hour, 3-day week, the Hours per Day calculation is 40 × 52 / 156 = 13.333.
Example Scenario
This table lists the relevant data in the employees' Job data:
|
Employee |
Employee Type |
Compensation Rate |
Compensation Frequency |
Standard Hours |
Work Period |
|
Marie |
Salaried |
Before: 1000 USD After: 1100 USD |
Semimonthly (annualization factor 24) |
40 |
Week (annualization factor 52) |
|
John |
Hourly |
Before: 10.00 USD After 11.00 USD |
Hourly (annualization factor 2080) |
40 |
Week (annualization factor 52) |
This table lists the relevant data on the Pay Group table:
|
Pay Frequency |
Daily Frequency |
Monthly Frequency |
Work Schedule |
|
S: Semimonthly (annualization factor 24) |
D156: (annualization factor 156) |
M: Monthly (annualization factor 12) |
NNNNYYY |
The examples involve one semi-monthly pay period of July 1 through July 15 as represented in this calendar:
|
S |
M |
T |
W |
T |
F |
S |
|
1 |
2 |
3 |
4 |
5 |
6 |
|
|
7 |
8 |
9 |
10 |
11 |
12 |
13 |
|
14 |
15 |
|
|
|
|
|
As defined by the work schedule on the Pay Group table, there are 11 workdays in the period July 1–15. On Monday July 8, all employees received a 10 percent pay increase. The respective pay rates are indicated as before and after in the compensation data listed in the activity scenario data. The following examples illustrate how Marie and John's pay would be prorated.
Note. The following examples assume that the employee's Earnings Distribution Type on the Job Earnings Distribution page is None.
Note. The following examples use the formulas and variable definitions provided earlier in the chapter.
See Proration Rules.
Salaried – Percent of Annual
Work Days x Annual Pay Rate / Work Days per Year
3 Work Days × 24,000 USD / 156 = 461.54 USD
3 Work Days × 26,400 USD / 156 = 507.69 USD
Total Pay = 969.23 USD
Note. Work Days per Year cannot be calculated using custom frequencies.
Salaried – Rate per Work Day
Work Days × Hours Per Day x Hourly Rate
3 Work Days × 13.333 Hours per Day × 11.538462 USD per hour = 461.53 USD
3 Work Days × 13.333 Hours per Day × 12.692308 USD per hour = 507.68 USD
Total Pay = 969.21 USD
Salaried – Percent of Period
Work Days × Pay Period Compensation Amount / Total Work Days in Pay Period
3 Work Days × 1,000 USD / 6 Total Work Days = 500.00 USD
3 Work Days × 1,100 USD / 6 Total Work Days = 550.00 USD
Total Pay = 1,050.00 USD
Hourly – Work Days
Work Days × Hours Per Day × Effective-Dated Hourly Rate
3 Work Days × 13.3333 Hours per Day = 39.99 (rounded to 40) × 10 USD per hour = 400 USD
3 Work Days × 13.3333 Hours per Day = 39.99 (rounded to 40) × 11 USD per hour = 440 USD
Total Pay = 880 USD
Hourly – Percent of Period
Work Days × Hours in Period × Effective-Dated Hourly Rate / Total Work Days in Pay Period
3 Work Days × 86.67 Hours / 6 workdays in the period = 43.335 (rounded to 43.34) x 10 USD = 433.40 USD
3 Work Days × 86.67 Hours / 6 workdays in the period = 43.335 (rounded to 43.34) x 11 USD = 476.74 USD
Total Pay = 910.14 USD
See Also
Defining Pay Groups
To set up pay groups, use the Pay Group Table (PAYGROUP_TABLE) component.
This section discusses how to:
Define a pay group.
Establish default employee types.
Define payroll calculation parameters.
Specify proration rules and other paysheet options.
Specify paycheck sort order and other options.
Define print sequence options.
Define additional U.S. and Canadian report parameters.
Specify banks and tips processing.
Select time and labor elements for the pay group.
Pages Used to Define Pay GroupsDefining a Pay Group
Access the Pay Group Table - Definition page (Set Up HRMS, Product Related, Payroll for North America, Payroll Processing Controls, Pay Group Table, Definition).
See Setting Up and Describing Pay Groups.
Establishing Default Employee Types
Access the Pay Group Table - Process Control page (Set Up HRMS, Product Related, Payroll for North America, Payroll Processing Controls, Pay Group Table, Process Control).
See Setting Up Process Controls for Pay Groups.
Defining Payroll Calculation Parameters
Access the Pay Group Table - Calc Parameters page (Set Up HRMS, Product Related, Payroll for North America, Payroll Processing Controls, Pay Group Table, Calc Parameters).
See Setting Up Payroll Calculation Parameters for Pay Groups.
Specifying Proration Rules and Other Paysheet Options
Access the Pay Group Table - Paysheets page (Set Up HRMS, Product Related, Payroll for North America, Payroll Processing Controls, Pay Group Table, then click the Pages 4–6 link.)
Note. If you defined an earnings distribution type for the employee on the Job Earnings Distribution page, the system uses the percent of period calculation method regardless of which salaried or hourly proration rule you select on this page.
Salaried Proration Rule
This group box enables you to define how earnings and hours are prorated during paysheet creation for salaried employees eligible for partial pay.
Note. For exception (salaried) hourly employees (those employees who receive a specified amount for the period) use the hourly proration rules.
See Proration Rules.
Hourly Proration Rule
This group box enables you to define how earnings and hours are prorated during paysheet creation for hourly and exception hourly employees eligible for partial pay.
See Proration Rules.
Paysheet Sequence
Use this group box to instruct the system how to sort online and printed paysheets. Depending on the option that you select, the paysheet process forces a page break any time it finds a new sequencing code.
|
Dept, Employee Type, Employee (department, employee type, employee) |
Select this option to insert page breaks after each different employee type and department. |
|
Dept, Employee (department, employee) |
Select this option to insert page breaks after each different department. |
|
Employee Only |
Select this option to insert page breaks based on the number of paylines it can accommodate. |
|
Employee Type, Dept, Employee (employee type, department, employee) |
Select this option to insert page breaks after each different department and employee type. |
|
Employee Type, Employee |
Select this option to insert page breaks after each different employee type. |
Use this group box to instruct the system to sort paysheets by employee ID or by employee name sequence. You have 10 sorting options. The online and hardcopy reports vary, depending on how you choose to sequence them.
Additional Page Elements
|
Define the work schedule that the system uses when prorating partial pay. Enter a Y (yes) or an N (no) under the initial of each day to specify the days that are included in the normal work schedule for this pay group. The field is seven characters long, one character for each day of the week, starting with Sunday. The system uses these indicators to determine the number of work days per year and the number of work days per week. If the normal work schedule for the pay group is Monday through Friday, enter NYYYYYN. |
|
|
Automatic Paysheet Update |
Select this check box to compare paysheet records to Job data. If the system finds discrepancies between the two records, it automatically updates the paysheet from the Job record information before calculating pay, if you have the Automatic Paysheet Update option selected. For example, assume that you run paysheets on July 10. You then receive the late paperwork on Jan's salary change, which should have gone into effect on July 1. If you selected the Automatic Paysheet Update check box, during pay calculation the system accesses the new salary information from the Job data and updates Jan's payline to reflect the new pay rate. |
See Also
Specifying Paycheck Sort Order and Other Options
Access the Pay Group Table - Check Distribution page (Set Up HRMS, Product Related, Payroll for North America, Payroll Processing Controls, Pay Group Table, then click the Pages 4–6 link, then access the Check Distribution page).
Paycheck Sequence
Use this group box to select a sort order for the checks. The system prints checks according to the various sequencing options in the Pay Group table in off-cycle and on-cycle modes. Check sequencing occurs during the Pay Confirmation COBOL SQL process (PSPCNFRM). Because the system confirms one off-cycle paysheet page at a time, it sorts off-cycle checks within each paysheet page. For example, if you confirm off-cycle paysheet pages 1−5 in a single confirmation run, and each page contains ten checks, each page is sorted individually: You end up with five individually sorted groups of ten checks each, not one group of fifty checks sorted as a whole.
|
Paysheet Order |
Select this option to sort checks in the same order as paysheets. This is the system default, and is the most efficient and fastest sort order. |
|
Postal Code Order |
Select this option to sort checks by postal code. Use the postal code from the Paycheck Address option. Note that this sort option applies to U.S. zip codes as well as Canadian and other international postal codes. |
|
Company Distribution Order |
Select this option to sort checks according to the print check sequence, which you define on the Pay Group Table - Check Sequencing page. |
|
Select on Payroll Options Page |
Select this option to sort checks by company distribution or postal code sequence based on the paycheck delivery option that you select on the Payroll Options 1 page and the Payroll Options 2 page. |
Paycheck Address Option
Use this group box to select which address you want to appear on the employee payroll checks. When you print paychecks for employees, the system always prints an address on the check, no matter which paycheck sequence option you select.
|
Home Address |
Select this option to print the employee's home address, as entered on the Personal Information pages under the Workforce Administration menu. |
|
Select on Payroll Options Page |
Select this option to print the address according to the paycheck location option selected on the Payroll Options 1 page. This option enables you to override the default address at the employee level. |
Paycheck Location Option
Use this group box to specify the location to use to sort checks when you use location as a sort option for company distribution.
|
Home Department Location |
Select this option to sort checks by home department location. |
|
Select on Payroll Options Page |
Select this option to sort checks using the Payroll Options 1 and Payroll Options 2 pages. Enter the appropriate location at the employee level. |
|
Job Location |
Select this option to sort checks by job location. |
Paycheck Employee Sequence
|
Employee Name Sequence |
Select this option to sort checks by employee name. |
|
Employee ID Sequence |
Select this option to sort checks by employee ID. |
Defining Print Sequence Options
Access the Pay Group Table - Check Sequencing page (Set Up HRMS, Product Related, Payroll for North America, Payroll Processing Controls, Pay Group Table, then click the Pages 4–6 link, then access the Check Sequencing page).
Pay Group Information
Use this group box to define print sequence options. For example, to sort checks by location, shift within location, and employee ID/name (based on whether you select Employee ID Sequence or Employee Name Sequence in the Paycheck Employee Sequence group box on the Pay Group Table - Check Distribution page) within shift, you enter three sort criteria on this page:
|
Prt Seq 01 |
L |
Location |
|
Prt Seq 02 |
S |
Shift |
|
Prt Seq 03 |
E |
Employee |
|
Check Print Sequence 01 − 10 |
If you selected the company distribution order option as the paycheck sequence on the Pay Group Table - Check Distribution page, you must select a check print sequence here: Department ID (D), Employee ID or Name (E), FLSA Status (F), Location (L), Mail Drop (M), Shift (S), Employee Type (T), and Supervisor ID (U). |
Defining Additional U.S. and Canadian Report Parameters
Access the Pay Group Table - Report Parameters page (Set Up HRMS, Product Related, Payroll for North America, Payroll Processing Controls, Pay Group Table, then click the Pages 7–9 link, then access the Report Parameters page).
Use this group box only if the pay group includes employees who belong to the California Public Employees' Retirement System (PERS). If you have no California-based public employees participating in PERS, leave these fields blank.
If you participate in PERS, the information on these fields is used during benefit calculation, if you've set up the PERS plan in the Retirement Plan page to be coordinated with the Federal Insurance Contributions Act (FICA). The Old Age Survivor and Disability Insurance (OASDI) Modification Data fields correspond to the fields on the OASDI Modification Chart.
Suppose 400 USD is the break point for calculating employee earnings reported monthly. According to the OASDI Modification Chart, if earnings are:
Less than 400 USD, earnings are recalculated as:
Earnings × 2/3 × Rate.
Greater than 400 USD, earnings are recalculated using the OASDI formula:
(Earnings - 133.33 USD) × Rate.
To set up this data for a pay group with a monthly pay frequency, enter 400 in the Earnings Break Point field, 0.6667 in the Low Factor field, and 133.33 in the High Exemption field.
|
Earnings Break Point |
Enter a dollar amount at which earnings below the break point are treated differently from earnings above the break point. |
|
Low Factor |
Enter a value to represent the factor that is used in the calculation to modify earnings that fall below the break point. |
|
High Exemption |
Enter a value to represent the factor that is used to modify earnings that exceed the break point. |
If you run Canadian payrolls and produce Record of Employment (ROE) forms, you must enter the appropriate reference and contact information in this group box.
|
Payroll Reference # (payroll reference number) |
Enter a reference number to help you locate employees. This is an internal payroll reference number. |
|
Contact ID |
Select a value representing the employee ID of the person who should respond to any internal questions regarding ROE's. |
|
Issuer ID |
Select a value representing the employee ID of the person who issued the ROE. |
Specifying Banks and Tips Processing
Access the Pay Group Table - Bank/Tip Info page (Set Up HRMS, Product Related, Payroll for North America, Payroll Processing Controls, Pay Group Table, then click the Pages 7–9 link, then access the Bank/Tip Info page).
(USA) Delay Withholding of Taxes
|
Delay Withholding of Taxes |
Select this check box if you do not want to withhold taxes until tipped employees have reported tips equaling the month-to-date tips withholding threshold established on the Federal/State Tax Table - Special Tax Amounts page. |
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Adjust to Minimum Wage (adjustment to minimum wage) |
This check box is selected by default, so that the system adjusts tips for the pay group to minimum wage. If you have an agreement with the Internal Revenue Service, you can deselect this check box. If this check box is selected, you must select a minimum wage adjustment earnings code in the Min Wage Adjustment Earns Code field. |
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Min Wage Adjustment Earns Code (minimum wage adjustment earnings code) |
Select the earnings code to be used for adjusting a tipped employee's earnings up to minimum wage when reported tips plus earnings do not equal the required minimum wage. The default values come from the Company table but you can override the Company table values here. |
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Tip Credit Earnings Code |
Select the earnings code to be used for tips credit. The default values come from the Company table but you can override the Company table values here. Note. Tips processing covers tip allocation, tip credit, and tip establishment mainly in the hospitality industry, but it can be used for any tipped employee population. |
Additional Page Elements
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Source Bank ID |
Select a source bank ID to indicate the bank from which employees in this pay group are to be paid. The source bank identifies the transit number, bank account number, check and advice form, and other information necessary to create checks and direct deposit entries for employees. If you leave the Direct Deposit Bank ID field blank, the system uses the source bank ID that you enter here for both checks and direct deposit. If you enter a source bank ID in the Direct Deposit Bank ID field, then the system uses the value in the Source Bank ID field for check processing only. |
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Direct Deposit Bank ID |
To pay direct deposit from a different bank and account than checks, enter a source bank ID here to identify the bank and account for direct deposit transmittals. If you use the same bank and account for both checks and direct deposit, leave this field blank |
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Minimum Net Pay and Maximum Net Pay |
Enter the minimum and maximum dollar amounts (net) that any given check may be issued for within the selected pay group. |
Selecting Time and Labor Elements for the Pay GroupSee Setting Up the Interface with Time and Labor.