Including an Employee in Payroll

After you enable the Payroll feature, the Payroll subtab is added to employee records. You must enter required information into this subtab so that you can use NetSuite to pay your employees.

To include an employee in Payroll:

Go to Lists > Employees > Employees, and do one of the following:
- To create an employee record, click New.
- To include an existing employee in payroll, beside the employee name, click Edit.
On the Address subtab, enter an address for the employee. The home address you enter is used to calculate state and local taxes. For more information, see Entering an Address for an Employee.

Note:
The home address can be used in conjunction with a workplace address.
On the Human Resources subtab, enter values in the Social Security Number, Birth Date, and the Hire Date fields.
On the Payroll subtab, do the following:
- Check the Include in Payroll box. If this box is not checked, the employee cannot be paid with SuitePeople U.S. Payroll.
  
  If you use NetSuite OneWorld, you must select a Subsidiary for the employee that matches the Subsidiary defined at Setup > Payroll > Set Up Payroll. Otherwise, this box is unavailable. After you select a subsidiary, save the employee record. Then, reopen the record in edit mode to check the Include in Payroll box.
- In the Compensation Type field, select Wage or Salary, depending on whether your company pays this employee an hourly wage or a periodic salary.
  
  Important:
  If you use the Compensation Tracking feature, and you set up Payroll to copy compensation tracking information, note the following. Enter the compensation tracking information on the Compensation Tracking subtab in the employee record. For more information, see Integrating Employees’ Base Pay Information with Payroll.
- In the Pay Frequency field, select how often this employee is paid.
- In the Last Paid Date field, for existing employees, enter or verify the last date of this employee's most recent pay period.
  
  This is the most recent date for which employees were paid or should be paid. For example, a pay period ends on October 7 but the paycheck is generated on October 10. The last paid date is October 7.
  
  For new employees the Last Paid Date field should be blank.
  
  If you add an existing employee to payroll for the first time, manually enter the last date of their first pay period. This field is automatically updated with the most recent pay-period end date each time you run payroll.
  
  Note:
  If this employee uses the Time Tracking feature, you must enter the employee’s last paid date. This ensures that the employee’s pay is calculated correctly according to the Pay Earnings Prior to Pay Periods (Days) preference in payroll setup. For more information, see General Payroll Preferences.
- From the Workplace list, select where this employee works.
  
  The workplace determines the taxes that must be paid by the employer and the employee.
  
  Important:
  If an employee lives in Washington, D.C. and works in a neighboring state, note the following. You must create a workplace with the same zip code as the employee's home address, but do not assign the workplace to the employee. After you create this workplace, if a reciprocity agreement is checked, employee tax withholding is calculated for only Washington, D.C. If a reciprocity agreement is not checked, withholding is calculated for both jurisdictions.
- If you set the Decrease Elective Deferral Limits and Automatically Calculate Catch-Up preference, you can override the employee’s elective deferral limits. For more information, see Decreasing Elective Deferral Limits for an Employee.
Click Save.

To include an employee in Payroll:

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