Creating pay summary groups

  1. As payroll administrators, select Payroll > Administration > Setup.
  2. In the Structure pane, click Pay.
  3. On the Pay Summary Groups tab, click Create.
  4. Specify this information:
    Pay Summary Group
    Specify a name for the pay summary group.
    Country/Jurisdiction
    Specify the country code.
    Payment Description
    Optionally, provide 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.
  5. 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.
  6. 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.

  7. Specify the tax form type.
  8. To manually specify the tax override amount or percent, in the Tax Override field, select Manual 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.
  9. Specify this information:
    Supplemental Tax Code
    For US pay summary groups, specify the tax method to be used for this pay summary group. The tax engine uses this value to determine how taxes are calculated.

    For Canadian pay summary groups, this value is required if the Payment Type is Supplemental.

    • Regular Rate: Value is 1.
    • Flat Rate: Value is 2.
    • Concurrent: Value is 3.
    • Bonus Retroactive: Value is 4.
    • Year To Date Bonus Method: Value is 6.
    • Manual: Value is 98.
    Remuneration Code
    Optionally, for US pay summary groups, specify a remuneration code. The tax engine uses this value to determine the taxability of the pay summary group.

    For Canadian pay summary groups, select C000 Canada Other Wages or C001 Canada Bonus. These values are passed in the interface to TaxFactory Canada.

    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, for US pay summary groups, 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.

    For Canadian pay summary groups, select the type of wages to be taxed this time.

    • Regular: Value is 0. Select this option if the pay summary group includes regular pay and is used for regular wage payments, lump sum payments, and patronage dividend payments.
    • Supplemental: Value is 1. Select this option if the pay summary group includes supplemental pay, such as bonuses and retroactive pay increases or wages paid to nonresidents of Canada performing services in Canada. A Supplemental Tax Code is required which determines the tax rate.
      Note: This payment type creates a separate pass to TaxFactory Canada.
    • Commissions: Value is 2. Select this option if the pay summary group includes commission pay.
      Note: The Supplemental Tax Code must be blank.
    Income Type
    Select the type of income being taxed in this calculation.
    • Wage: Value is 0.
    • Patronage: Value is 1.
    • Lump Sum: Value is 2.
    • Lump Sum with Eligible Registered Retirement Saving Plan: Value is 3.
    • Non-Periodic Bonus: Value is 5.
    • Tax Option 2; Periodic: Value is 6.
    Note: Supplemental Tax Code, Payment Type, and Income Type values are passed in the interface to TaxFactory Canada.
  10. Click Save.