Payroll Item Derivation

You can derive a payroll item from another payroll item, a payroll item group, or a retirement plan. For more information, see the following topics:

• Deriving a Pay Rate from Another Payroll Item

• Deriving a Pay Rate from a Payroll Item Group

• Deriving a Payroll Item from a Retirement Plan

You can derive the following payroll item types:

• Deduction

• Earning:Addition

• Earning:Salary

• Earning:Wage

• Earning:Sick

• Earning:Vacation

• Employer Contribution

Earning payroll items can be derived from other earning payroll items. Deduction payroll items can be derived from earnings, deductions, or retirement plans. Employer contributions can be derived from earnings, deductions, employer contributions, or retirement plans.

When you assign a payroll item that includes a derived rate, you must also assign the payroll item from which the rate is derived. For example, create an earning:addition payroll item called Annual Bonus. Its rate is derived from an earning:salary payroll item called Annual Salary. You must assign both the Annual Bonus and the Annual Salary payroll item to the employee. For more information, see Payroll Setup for Employees.

After you calculate a payroll batch that includes derived pay rates, note the following. The payroll items with derived pay rates appear in the Net Pay subtab of the Complete subtab. For more information, see Creating a Payroll Batch.

Related Topics

• Payroll Item Types
• Creating Payroll Items
• Creating Payroll Item Groups
• Setting a Limit for a Payroll Item
• Applying a Default Rate to a Payroll Item
• Inactivating or Deleting Payroll Items
• Editing a Payroll Item
• Scheduling Payroll Item Changes
• Mapping Pay Codes to Payroll Items
• Standard Pay Codes
• Payroll Items Setup

General Notices