Setting Up Employee Pay Types
Employee pay types are components of pay. You can define employee pay types in the payroll system in different ways. The employee pay types for labor expense allocation are based on the granularity to which payroll expenses need to be allocated. For example, pay components may include different taxes, but for allocation purpose, you can define a single grouped employee pay type named Direct FICA Tax.
Creating Employee Pay Types
Create new employee pay types from the Employee Pay Type page.
To create an employee pay type:
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Go to Expense Management > Setup > Set Up Employee Pay Types > New.
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In the Employee Pay Type field, enter the name of the employee pay type.
Upon saving the record, the same value entered in this field is copied to the Name field.
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From the Expense Allocation Account list, select the account from which you want to debit labor expense allocation.
You must select an account other than bank account or credit card account.
For more information, read the topic Creating Accounts.
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(Optional) To make the employee pay type available for allocation, check the Include for Allocation box.
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Click Save.