You can create pay types in HR Admin > Pay Type. Pay types are used to categorize employees into different groups that describe how they are paid. For example, employees who are paid on a salary basis are assigned a different pay type than those paid on an hourly basis.
Role feature access: HR Admin > HR Admin > Pay Type
The number of pay types that you need to create depends on your organization's payroll policies. The more complex the rules and the ways that employees are paid, the more pay types you will require to properly group employees.
To create a pay type:
- Go to HR Admin > Pay Type.
- Click Add and enter a name and description.
- Enter a value in the Reference Code field.
- In the Group drop-down list, select Hourly or Salary.
- Configure other fields as needed. See Pay Type Settings.
- Click Save.
Pay types in HR Admin > Pay Type have the following settings:
| Setting | Description |
|---|---|
|
Name |
The name of the pay type. |
|
Description |
(Optional) The description of the pay type. |
|
Reference Code |
The reference code value of the pay type. Reference codes are used to export data to other applications. These codes must be unique and must not contain special characters. |
|
Sort Order |
(Optional) A sort order number defines the rank of the pay type in lists and reports. Pay types without a sort order are placed below those with a sort order. |
|
Group |
The pay type’s group, either Hourly or Salary. While you can create as many pay types as necessary for reporting purposes, each needs to represent either an hourly or salaried job assignment so that Dayforce knows how employees with the corresponding pay type are paid. |
|
Maximum Rate |
(Optional) Dayforce enables one of these fields based on whether you select Hourly or Salary in the Group drop-down list. You can enter a value to define the maximum rate or salary for employees with this pay type. Dayforce notifies users with a message if they attempt to save a rate or salary in an employee's records that is greater than the maximum. If the rate or salary specified for an employee in the HR Import exceeds the maximum, it’s recorded in the background job log and the import background job continues. |
|
Maximum Salary |
|
|
Hide Daily Pay |
(Optional) This checkbox can hide the Daily tab of the Pay panel in Timesheets for employees with this pay type. This checkbox doesn’t affect the Employee Timesheet feature. |
|
Auto Pay Payroll |
(Optional) This checkbox enables the pay type for the auto pay functionality of the Payroll module. For more information, see Auto Pay in the Payroll Administrator Guide. |
|
Ledger Code |
(Optional) The ledger code of the pay type. This functionality can be used only if Dayforce is configured to use the Payroll module. Dayforce can associate the pay amounts for each pay type with the appropriate general ledger account. This information can then be exported with the Payroll GL Export background job. |