Custom groups and pay structures

You must define custom groups and pay structures to classify employee accounting for production, construction, non-supervisory employees, overtime payments, and commission payments.

  • Groups of work assignments can be specified by selecting Payroll Administrator > Setup > Custom Groups. Use the subject HCMGroupPayrollRegulatory.

    You can set up a custom group to include all employees with a Primary and Active work assignment. You can then define other custom groups to classify production, construction and nonsupervisory employees. Ensure that these other groups are subsets of the All Employees group.

  • Pay classes and summary groups can be managed by selecting Payroll Administrator > Setup > Pay Structure.

    For more information, see Pay structure setup.

    For example, you can create pay codes to include regular, commissions and overtime pay.

    Pay codes are added to pay summary groups and pay summary groups are added to pay classes. Confirm that pay summary group relations are created to include the correct pay class and pay summary group with the correct hours and wages selection.

Note: When setting up employee groups and pay classes, you must have a thorough understanding of BLS requirements regarding commissions pay and overtime hours so that they are not counted twice. A warning or error message is not generated if a class or group is set up incorrectly.

For example:

  • If you include overtime pay codes in the All Payroll Class but do not specify the Overtime Pay Class in the parameters, then Overtime with Regular is included in the report. This results in an incorrect report.
  • For overtime hours, you can create a separate Overtime Pay Class to only include manufacturing employees.