Configuring pay codes is a crucial step in payroll management that ensures accurate classification of employee earnings, deductions, and benefits. This process involves defining specific codes that represent various types of compensation, such as regular pay, overtime, bonuses, and deductions for taxes and benefits.
It is essential to configure pay codes to facilitate precise payroll calculations, maintain compliance with labor laws, and generate accurate financial reports.
To help you configure pay codes, watch the video or follow the steps below.
Click Settings then under Codes, click Pay Codes.
Click Create New Pay Code.
📌Note: We recommend copying an existing pay code, where a similar one exists, by clicking Copy from its three-dot menu.
From the Payment Type drop-down menu, select a payment type.
From the Payment Subset Type, select a subset type.
In the Pay Code field, enter a unique number.
In the Description field, enter a description then click OK.
Complete each step in the Pay Code Wizard screen then click Save.
For further guidance, check the pay code wizard user guide.