Pay classes
Pay classes are used in Benefits to identify buckets that are used to track pay and hours worked. For example, if an employee is not eligible for a benefit until they work 1,000 hours, then the entry rule, which is a waiting period rule, will require that the 1,000 hours and the pay class are identified. It is recommended that the pay class code match the code used in your payroll application.
This is also how ACA hours are identified. If all hours imported from the Benefit Hours Worked Import will be used for ACA, then a pay class is not required.
Example
The Two Rivers Company established these pay classes:
-
REG used as regular pay in defined contribution compensation or vesting
-
GTL used for W-2 reporting of taxable Group Term Life Insurance premiums.
Example
The Two Rivers Company defined these pay classes, pay summary groups, and pay codes:
| Kind of Pay | Pay Class | Pay Summary Group | Pay Code |
|---|---|---|---|
| Regular | REG | REG | |
| Flex Credits | FLX | FLX | |
| Group Term Life | GTL | GTL | GTL |