To be included in payroll, employees must belong to a Payroll Group.  A payroll group organizes employees who work the same number of days per year, who work the same number of hours per day, who are paid the same number of times and at the same time every month together.  This ensures that it is less likely that an employee will not be paid during pay day.

A payroll group consists of the following:

  • Day Factor - determines how many working days per year there are in the payroll group
  • Hours per Day - determines how many hours there are in a working day.  This is used when calculating an employee’s hourly rate, which is derived from his daily rate
  • Pay Frequency - determines how often the employees in the payroll group get paid.  This can be either weekly, fortnightly, semi-monthly or monthly
  • Payroll Period - determines the period of time for which employees in the payroll group get paid on the Pay Run Date
  • Pay Run Date - determines when the employees in the payroll group get paid
  • Posting Date - determines the month in which payroll, taxable income as well as contributions will be posted for the payroll group, for accounting purposes
  • Payroll Calendar - indicates the payroll periods, pay run dates and posting dates for the payroll group