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.