Defining pay summary groups

A pay summary group represents one pay code or a group of pay codes, and can be tied to pay classes. Use this procedure to define pay summary groups.

  1. Access Pay Summary Group (PR20.2).
    Note: The tax engine uses the Country Code selected to calculate taxes for this Pay Summary Group.
  2. Select the country that you want the pay summary group to represent in the Country Code field.
    Note: The country that you select in the Country Code field determines what information you can enter on the Tax tab. If the company does not use multiple countries, then this country code must be the same as the company's country code.
  3. Specify a code to represent the pay summary group in the Group field.
  4. Specify the name of the pay summary group in the Description field.
  5. Specify the description that you want to print on payments and direct deposits in the Payment Desc field.
  6. If you calculate FLSA overtime for employees, then you must define pay or premiums used in the calculation of FLSA overtime. Use these guidelines to specify tjhe field values:
    OT, Pay (Eligible Overtime, Pay)

    Select whether or not the straight portion of wages for this pay summary group should be considered in the calculation of the weighted average rate.

    OT, Hrs (Eligible Overtime, Hours)

    Select whether or not the hours for this pay summary group should be considered in the calculation of the weighted average rate.

    Prem, Pay (Eligible Premium, Pay)

    Select whether or not the premium portion of wages for this pay summary group should be considered in the calculation of the weighted average rate.

    Prem, Cr (Eligible Premium, Credit)

    Select whether or not the premium portion of wages for this pay summary group should be used as a credit against the overtime calculated.

    Note: The Tips application only uses direct tips in the allocation process.
  7. If the pay summary group is associated with tips pay being tracked by the Lawson Tips application, then select the value that identifies the pay as direct or indirect tips.
  8. Define additional tax information for the pay summary group. Use these guidelines to specify the field values:
    Payment Type

    The type of pay included in this pay summary group. The tax engine uses this payment type to determine how to calculate taxes for this pay summary group.

    Note: This field is required for pay summary groups with a country code of Canada and defaults to Regular.
    Supplemental Tax Code

    The tax method that you want to use for this pay summary group.

    The tax engine uses this payment type to determine how to calculate taxes for this pay summary group.

    Note: If you select US Exempt or Canada Exempt in the Supplemental Tax Code field, then all pay for the pay summary group is exempt from taxes.

    If you select US Manual Override or Canada Manual Override, then use Tax Overrides (PR20.6) to define the authority type that has deduction amounts or percents overridden for this pay summary group.

    Remuneration Code

    If you selected Canada in the Country Code field and selected Canada Supplemental in the Payment Type field, then select C0 (Canada Regular) for bonus payments.

    The tax engine uses this payment type to determine how to calculate taxes for this pay summary group.

    Inc Type

    If this is a Canada pay summary group, then select the income type.

    The tax engine uses this payment type to determine how to calculate taxes for this pay summary group.

  9. Select the Add form action to add the pay summary group.
    Note: Tax Overrides are used when it is necessary, from a global standpoint, to override the normal taxation for a pay type. This is not where tax overrides are defined for an individual employee.
  10. If you selected US Manual Override or Canada Manual Override in the Supplemental Tax Code field, then define tax overrides for pay summary groups:
    1. Access Tax Overrides (PR20.6).
    2. Select the pay summary group that you want to create tax overrides for the Pay Summary Group field.
    3. Define the override tax information you want to use for this pay summary group. Use these guidelines to specify the field values:
      Type

      The type of tax authority that you want to override for the selected pay summary group.

      Note: The type Federal does not include Social Security, Medicare in the US or CPP, QPP, Employment Insurance in Canada.
      Indicator

      Select whether the override is an amount or percent.

      Amount, Percent

      The amount or percent of the override.

  11. Define any tax deductions from which the pay summary group is either exempt from taxes or is subject to update taxable wages only.
    Note: Before you define tax exemptions for a pay summary group, you must define tax deductions.

    See Defining tax deduction codes.

    1. Access Tax Exemptions (PR20.5).
    2. Select the pay summary group that you want to create tax exemptions for in the Pay Summary Group field.
    3. Select the deduction in the Deduction field from which the pay summary group is exempt from taxes or is subject to update taxable wages only.
    4. Select the value that determines how Payroll processes the deduction.
      If you want to Select
      Indicate that the selected pay summary group is exempt from withholding taxes for this deduction Exempt.
      Indicate that for this deduction, taxable wages are updated by, but no taxes are withheld from, the selected pay summary group Update Taxable Only.

Related reports and inquiries

To Use
View a listing of pay codes, pay classes, pay summary groups, and pay summary group relationships Pay Code Listing (PR220)
Related topics