Follow these steps to set up a pay group:

1. In Payroll, from the Setup menu, select Pay Groups.
2. Enter a Pay Group ID and Description, for example, Field, Field Mgmt, Admin, Executive.
3. Select Auto Salary if you want employees in this pay group to be paid automatically when using process payroll (optional).
4. To assign expense accounts for earnings and burden (employer taxes and fringes) in this pay group, enter either full General Ledger accounts or enter the General Ledger prefixes used to build the accounts.
5. In Pay Frequency, select how often the employees in each pay group are paid (this item also provides the basis for the annualization of earnings for the tax calculation).
6. In Days and Weeks, enter the number of days, weeks, or both that should accumulate for the employee each time an employee in this pay group is paid (optional).
7. In Salary Hours, enter the number of hours that should accumulate for the employee each time an employee in this pay group is paid (optional).
   Note: Only use this field for salaried employees. For pay groups that include salary employees, if you post salary pays to Billing, you must make an entry in Salary Hours.
8. Click in the Bank Accnt column, click [List], select the correct Payroll bank, and then click [OK].
9. Select the order in which checks print in Custom Sort and your rounding preference in Round Net (typically, round net is only used for Australian Payroll).
10. Click [Accept line] to accept the current line.
11. If desired, repeat steps 2 - 10 to set up additional pay groups.
12. Click [Accept table].

Notes:

• Your company's payroll bank accounts must already exist in Cash Management.
• You must select a Pay Group for each Employee during employee setup in Payroll.
• If you are set to use Inter-company accounting or Retrieve prefixes in GL Entry settings in PR Settings then the Pay Expense Prefix field is required.