Creating pay summary groups

  1. Select Payroll Administrator > Setup > Pay Structure.
    or

    Select Administrator > Set Up > Payroll > Pay Structure.

  2. Click the Pay Summary Groups tab.
  3. Click Create.
  4. In the Pay Summary Group field, specify a name for the pay summary group.
  5. In the Country field, specify a country code.
  6. Optionally, specify a payment description. The payment description is used on employee payments and reports. If no payment description is specified, the name of the pay summary group is used.
  7. If you calculate Fair Labor Standards Act (FLSA) overtime for employees, select these check boxes as appropriate:
    Overtime Pay
    Select this check box if the straight portion of wages for this pay summary group are considered in the calculation of weighted average regular rate of pay.
    Overtime Hours
    Select this check box if hours for this pay summary group are considered in the calculation of the weighted average regular rate of pay.
    Premium Pay
    Select this check box if the premium portion of wages for this pay summary group is considered in the calculation of the weighted average regular rate of pay.
    Premium Credit
    Select this check box if the premium portion of wages for this pay summary group is used as a credit against the overtime calculated.
  8. Select these check boxes as appropriate:
    Non Earnings
    Select this check box if this pay summary group is used for non-earnings, such as mileage or tuition reimbursement.
    Non Cash Income
    Select this check box if this pay summary group is used for non-cash income, such as excess group term life.
    Exclude Hours From Hours Worked On Pay Stub
    This field determines if the wages of the pay summary group are shown in the Hours Worked column on the pay stub. Select this check box to exclude the wages of this pay summary group.

    For example, if the employee worked 10 hours in this pay code and this check box is selected, the Hours Worked column for this pay code is 0. The Hours column for this pay code is 10.

    For this field to be available, the Enable Hours Worked On Pay Stub check box must be selected when setting up the organization.

  9. Specify the tax form type.
  10. To manually specify the tax override amount or percent, select Manual in the Tax Override field and follow these steps:
    1. Click Save.
    2. On the Manual Tax Rate Overrides form, click Create.
    3. Specify the authority type.
    4. Specify the amount or percent.
    5. In the Allow Tax to Exceed Taxable Wages field, select Yes or No.
    6. Click Save.
  11. Specify this information:
    Supplemental Tax Code
    Specify the tax method to be used for this pay summary group. The tax engine uses this value to determine how taxes are calculated.
    Remuneration Code
    Optionally, specify a remuneration code. The tax engine uses this value to determine the taxability of the pay summary group.
    Custom Earnings Code
    Optionally, specify an override to specify how tax is calculated for a specific jurisdiction. A custom earnings code can only be used in conjunction with a remuneration code of BSIE999.
    Payment Type
    Optionally, specify a payment type for use in calculating District of Columbia tax withholding. If you select Supplemental Cumulative, then the Supplemental Tax Code field must be set to Cumulative.
  12. Click Save.