When an employee is paid, his pay represents the work he has done for a certain period of time. This is called the Pay Period, and can be set up when creating a payroll group.
The amount of days in a Pay Period is determined by the pay frequency of the payroll group, as follows:
- a payroll group with a weekly pay frequency will have pay periods that last one week
- a payroll group with a fortnightly pay frequency will have pay periods that last two weeks
- a payroll group with a semi-monthly pay frequency will have pay periods that last 15 days
- a payroll group with a monthly pay frequency will have pay periods that last one month.
To determine your pay period, go to Company Setup>Payroll>Payroll Group>Add Payroll Group. The Payroll Group creation page will pop up.
Select a Pay Frequency and then enter the Pay Period Start and End Dates of your Pay Period for semi-monthly pay frequencies, or the Pay Period End Date for weekly, fornightly and monthly pay frequencies. Also enter the First Pay Run Date. This is the date when you will pay your employees.
The Payroll Calendar will generate to the right and here, you can verify if the pay periods are correct based on the Pay Period Start and End dates you entered.