Setting Up Basic Pay Type Information
Access the Pay Type Revisions form.
On Pay Type Revisions, for tax-exempt pay types, select Tax Exemptions from the Form menu. On Tax Exemptions, specify the tax types that should not be computed for the pay type. To specify that the pay type is exempt from all taxes, enter * in the Tax Type 01 field.
- Paystub Text and French CDN. Paystub Text
Enter the text that you want the system to print on the employee's paystub. If you are using JD Edwards EnterpriseOne Time and Labor, the system does not create payments. However, this field is required to complete the form. Generally, you enter a description of the PDBA.
- Pay Type Category
Enter a user defined code (07/PC) that specifies the pay type categories that you want to use:
For regular pay.
To generate overtime.
For reporting purposes on the Certified Payroll Register (U.S. only).
- Effect on GL (effect on general ledger)
Enter a code that indicates whether the system writes journal entries from Payroll to the general ledger, and the method to use. Values are:
H: Write only hours to the general ledger. This code is valid for generating timecard journals. The code should not be used when journals are generated through the pay cycle.
M: Do not write monetary amounts or hours to the general ledger. Do not calculate workers' compensation and general liability.
N: Write monetary amounts and hours to the general ledger.
Y: Write only monetary amounts to the general ledger.
W: Do not write monetary amounts or hours to the general ledger, but calculate workers' compensation and general liability. Workers' compensation and general liability amounts will be written to the general ledger.
- Pay Source
Enter a user defined code (07/PB) that defines the value upon which the system bases the employee's pay. The default value is H (hours worked). Other values exist for tip and piecework processing, and for Canadian lump-sum amounts, irregular commissions, and bonuses. Use E, estimated pay, for an advance pay interim check. The Interim Check program (Format 2) automatically deletes this type of timecard so that you can enter the actual time when it is known.
- Pay Type Multiplier
Enter a factor by which the base hourly rate is multiplied to obtain the actual payment hourly rate. For example, you could use 1.5 to designate time-and-one-half for overtime pay. 0 is not a valid multiplier. The default value is 1.00.
- Shift Differential Method
Enter a code that specifies how the system calculates shift differential information. Values are:
1: Applies the pay type multiplier to the shift differential: Gross = (rate + shift differential) × (multiplier) × hours.
2: Applies the pay type multiplier only to the hourly rate and does not include the shift differential: Gross = (rate × multiplier) + (shift differential) × hours.
Blank: The system follows the shift differential method that is associated with the pay type from the F059116 table.
The multiplier is the pay rate multiplier from the Payroll Transaction Constants table.
When the pay rate is derived from the Union Rate table, the multiplier is assumed to be 1 because it is built into the table. In this case, all methods produce the same result.
- Shift Differential
Enter a monetary amount that is added to an employee's hourly rate, depending on the shift worked. This rate can be applied in one of two ways, as defined by the Shift Differential Calculation Sequence (data item CMTH).
The system does not calculate percentage amounts for shift differentials that you enter at the pay type level.
- Auto Pay Methods
Enter a code that determines how the system treats this pay type when computing automatically generated pay (typically for salaried employees). It also identifies supplemental pay. Values are:
Y: The dollars with this pay type are part of the employee's base pay (for example, regular, holiday, sick, and vacation pay).
N: The dollars with this pay type are in addition to the employee's base pay (for example, overtime pay and time off without pay).
S: The hours with this pay type are subtracted from the employee's base pay at standard rate and added back at the entered pay rate.
B: The dollars with this pay type are in addition to the employee's base pay and are treated as supplemental pay (for example, bonuses, commissions, and payoffs) for taxation purposes. Canadian bonuses, irregular commissions, and lump sums use auto pay method B.
C: The hours or dollars entered using this pay type override all auto pay instructions.
- Amount or Rate
Enter a value that specifies a percentage, a monetary amount, or an hourly rate, depending on where it is used. Values are:
1: For a deduction, benefit, or accrual, the meaning of this value depends on the method of calculation. The method determines whether the deduction is a flat monetary amount, a percentage, or a multiplication rate. Table method DBAs, depending on which table method they use, can either use this amount in the calculation or ignore it. If there are exceptions to the table calculation, you can override the table code in the detail area, set up a flat monetary DBA amount, or override the amount with a one-time override for a timecard.
2: For a pay type, amounts entered in this field override the hourly rate.
- Effect on Gross Pay and Effect on Net Pay
Enter a code that indicates whether the pay type is added to, subtracted from, or does not affect the employee's gross pay. Values are:
Positive: Pay type will be added to the employee's gross pay.
Negative: Pay type will be subtracted from the employee's gross pay.
Blank: Pay type will not have an effect on the employee's gross pay.
A pay type should not have a negative effect on gross pay. If you set up a pay type to have a negative effect on gross or net pay, gross-to-net errors appear on the Payroll Register. It is recommended that you set up a deduction instead of a pay type that would have a negative effect on gross pay.
When you set up a pay type with no effect on gross pay and a positive effect on net pay, do not create a separate check. Creating a separate check will cause a gross-to-net error.
- Tax Type 01
Enter up to 15 tax types for which the respective payroll tax is not to be computed for a pay, deduction, or benefit code.
If you enter * in the first element of this list, no taxes are computed.
- Do Not Allow for Future Entry
Select a value to specify whether you can enter the pay type in advance. Values are:
Allow for Future Entry: Pay type can be entered in advance.
Do Not Allow for Future Entry: Pay type cannot be entered in advance. This is the default value.