Pay categories represent how Dayforce pays employees for a segment of time. Each pay category belongs to a pay category group, which can be used for reporting purposes and to classify the type of pay category (such as, vacation pay, regular pay, overtime, premium, or unpaid).
Pay categories influence how employees are paid through a multiplier, which Dayforce applies to an employee’s pay rate for the segment of time with the pay category. For example, the Daily OT category has a multiplier rate of 1.5. Employees with a regular pay rate of $10 an hour would earn $15 an hour for any time in the Daily OT pay category.
Typically, payroll rules are responsible for categorizing an employee’s time into pay categories. You can configure a variety of payroll rules in a pay policy to ensure that employees are paid accurately. See Configure Pay Policies.
You can have multiple pay categories in a pay category group, each of which pay employees differently. For example, in the overtime pay category group, you’d create a pay category for each type of overtime your organization pays out, such as daily and weekly overtime and double-time.
It’s common for some pay categories to have the same multiplier rate and still describe different pay. For example, if you want to distinguish between weekly and daily overtime for reporting purposes, but both overtime rates are paid at time and a half in comparison to the employees’ regular pay.
Pay categories belong to a group, so review the existing pay category groups first, and create new pay category groups if needed.
See the following topics: