Pay classes

Pay Classes group pay summary groups for:

• Performing special calculations

• Applying special system edits

• Reporting

Pay summary groups can be associated with more than one pay class.

The Human Resources application automatically creates three pay classes if you define them when you create a company:

• Overtime—Edits against paying overtime to exempt employees. Commonly abbreviated as OVT.

• Noncash—Administers the proper calculation of non-cash income. Commonly abbreviated as NON.

• Tip Pay—Allows for entry of both hours and amount on time record without being multiplied together. Applies edits using Tip pay for non-tipped employees. Commonly abbreviated as TIP.

You can define other pay classes for reporting or to use with other Human Resources applications. For example, you can define a vacation or sick pay class to track usage in the Time and Attendance application, or define a pay class to calculate deductions based on certain types of pay.

There is no limit on the number or type of pay classes you can create; however, you must define the overtime, non-cash, and tips pay classes on the HR company or Payroll will not activate special hard-coded edits and calculations.