How to set up a Pay group (via the Personnel Module)?
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Pay Group
A pay group is a logical grouping of employees based on shared characteristics that facilitate payroll processing because of common requirements such as employee type, pay frequency, same country location, and so on. A pay group is unique and consolidates a set of employees within a company for payroll processing. E.g. Monthly, Fortnightly, Executives, etc.
- Pay Group : Enter a unique and user defined code which represents your pay group. This field accepts a Minimum of 3 and a Maximum of 5 alphanumeric characters. CAPS are required and special characters are Not accepted.
- Pay Group Name : The paygroup name should describe the pay period and the group of employees it represents. E.g. Monthly Executives. This field accepts a Minimum of 1 and a Maximum of 40 alphanumeric and special characters.
- Pay Period: This describes the frequency in which persons are paid in that paygroup. Select from the available options. i.e. Monthly, Bi-Monthly, Fortnightly, Weekly, Quaterly.
- Fixed Grade: If this pay group is paid strictly paid via a fixed grade, then select 'Yes'. Otherwise select No.
- Salary Grade Type: If the fixed grade was set to 'Yes', then indicate if the salary grade setup is based on a point or ratio system.
- Hours in Cycle: The total working hours in each pay cycle/period e.g. 35 or 40 hours for a weekly cycle, 80 h ours for a bi-weekly/fortnightly, 173.4 for Monthly, etc. This is used in calculating the hourly rate of pay on the employee's pay profile.
- Currency : Select the currency from the drop down list. The employees will be paid in this currency.
- Active Year : Enter the active year based on the first cycle that you will run on HRplus for that pay group.
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Tax Method: There are several Tax Methods from which you can choose, each of which will determine how the taxes are calculated. Below is a brief description of what how each rule is applied. Follow the links provided for more details on each tax method. For more details and worked spreadsheets see Payroll Manual.
- Smoothing Formula: This is designed for Employees who work all year round, excluding vacation periods, and taxes, therefore, are evenly distributed throughout the year. Additional Notes on Smoothing Formula
- Non-Smoothing: How does the Non-Smoothing Formula work?
- Semi-Smoothing TT only: How does the Semi-Smoothing Formula work?
- Smoothing Formula 2 TT only: How is tax calculated using Smoothing Formula 2
- Tax Table: Select the Tax Table that will be used in processing tax for the selected pay group.
Pay Group Access
Once a pay group has been created, access must then be granted to the relevant users via the security module. Follow the link below for a guide on:
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