From the Payroll screen, select the Maintenance menu and then Pay Codes.
Note: If desired, to access the Pay Code File from Negotiations (if applicable), select the Payroll menu from the Negotiations screen and then Pay Codes.
At the Pay Codes screen, click the New Record button.
Note: For any field equipped with the repeat function, click the Repeat button or press the Ctrl+R keys to repeat the previous entry for the specified field. The repeat function is only available after your initial entry.
Enter a unique ID for the pay code in the Pay Code ID field. The ID can be alphanumeric and up to 10 characters long (no spaces).
Note: To have the system automatically assign the ID using the first 10 characters (letters and numbers only) of the description, leave the ID field blank; once the record is saved, the ID will be assigned.
Select the Active field to stipulate the pay code is currently active and used by the district. A checkmark will appear in the box if the field is selected. When adding a new pay code, the Active field is selected by default.
Note: If the Active field is unselected (a checkmark does not appear in the box) for an existing pay code, the pay code cannot be added to an employee in the Employee File or an entry cannot be made in the Pay Period Entries, Time Cards, or Employee Absences options. Also, if a contract pay code which was previously set up for one or more employees is made inactive, the contract will not be paid for the applicable employees even if there is a balance for the contract.
Enter a description for the pay code in the Pay Code Description field. The description can be up to 40 characters long.
Tip: Enter an asterisk (*) as the first character of the description to have the system combine the wages for this pay code for an employee with other wages (that also have an asterisk as the first character of the check description, as defined in the Check Description field on the Wages screen in the Employee File, or else the description of the pay code from the Pay Code File if the pay code is not defined in the Employee File for an employee) on the check stub using OTHER YTD PAY as the description.
Enter the appropriate type (Add, Contract, Deduction, or Payment In Kind) for the pay code in the Pay Code Type field, or click the down-arrow button to select the correct one. If the pay code increases the gross wages and will only be paid if an entry is made within the Pay Period Entries option for the applicable employees during a check cycle, enter Add. If the pay code increases the gross wages and will pay a specified dollar amount to the applicable employees each check cycle until a total amount has been paid, enter Contract. If the pay code decreases the gross wages, enter Deduction. If the pay code increases the taxable gross but does not affect the gross wages, enter Payment In Kind.
If applicable, enter the ID of the workers' compensation class with the corresponding rate for which to calculate (and pay, if applicable) the workers' compensation liability on the gross wages for the pay code in the Workers' Compensation Class ID field. If the ID is not known, click the down-arrow button to select the correct one, or press the Ctrl+F keys to access the search feature.
If applicable, enter the box number for where to post the year-end totals for the pay code in the additional boxes on the W2 for employees in the Federal Form Box ID field, or click the down-arrow button to select the correct one. Typically, this field is only completed for pay codes with a Pay Code Type of Deduction or Payment In Kind.
Note: The computer automatically accumulates taxable wages for Boxes 1-6 and 16-19 on the W2s (as based on the taxes selected in the Cross References List); this is for other reportable information in additional boxes.
If applicable, enter the ID of the leave for which the pay code is tied in the Leave ID field. If the ID is not known, click the down-arrow button to select the correct one, or press the Ctrl+F keys to access the search feature. If an ID is entered here, each time this pay code is used in a check cycle, the specified units will be deducted from the designated leave.
Note: This field is disabled and not applicable if Contract is specified in the Pay Code Type field.
Only if the Time Cards option is used in Payroll or the school district uses the Negotiations module, if the pay code is defined to pay regular rates, enter the ID for the pay code to be used for paying overtime rates in the Overtime Pay Code ID field. If the ID is not known, click the down-arrow button to select the correct one.
Note: This field is disabled and not applicable if Contract is specified in the Pay Code Type field.
If applicable, select the Hours Worked field to have the Hours field for entries in Pay Period Entries and Employee Absences for this pay code automatically be completed (based on the number in the Units field) in order to be included in the total hours worked for the employees on the applicable government reports. A checkmark will appear in the box if the field is selected.
Note: This field is disabled and not applicable if Contract is specified in the Pay Code Type field.
Tip: Tracking hours worked is required if the Affordable Care Act (ACA) Hours Tracking option within the School Accounting System will be completed. Also, tracking hours worked is required for inclusion on the applicable government reports for school districts in Illinois (for pay codes used by applicable employees to be included on the Illinois Monthly Teachers Retirement Report, including only employees with absences on contracts or rehired retirees), Missouri (for pay codes used only by employees with a wage type of R for Retired Working Member, T for Non-Member Sub Teaching WAR Waiver, or X for Non-Member), Nebraska, North Dakota (for pay codes used by teachers only), South Dakota (for pay codes used only by employees without retirement), and Wyoming.
If the Hours Worked field is selected, the Hours Per Unit field is enabled. If applicable, enter the number of hours worked for each unit included with entries made for the pay code in Pay Period Entries and Employee Absences in the Hours Per Unit field, or leave the field blank to default to 1. When the entries are made for this pay code in Pay Period Entries and Employee Absences, the number entered here will be multiplied by the number entered in the Units field for the entry and the total will be displayed in the Hours field. The number can be up to 14 digits long (including the decimal point and comma(s) if applicable) and will be rounded to 4 decimal places by the system if capable.
Note: This field is disabled and not applicable if Contract is specified in the Pay Code Type field.
If the pay code is defined to pay overtime rates, select the Overtime field. A checkmark will appear in the box if the field is selected.
Note: This field is disabled and not applicable if Contract is specified in the Pay Code Type field.
If desired, enter any additional information to track for the pay code in the Comments field. The comment can be up to 1,000 characters long.
If applicable, complete the Pay Code Defaults section for the pay code.
Enter the rate to use as the default to pay for one unit of the pay code for all employees in the Default Rate field; otherwise, leave the field blank to enter a specific rate for each employee in the Employee File. The rate can be up to 14 digits long (including the decimal point and comma(s) if applicable) and will be rounded to 4 decimal places by the system if capable.
Note: This field is disabled and not applicable if Contract is specified in the Pay Code Type field.
If desired, in the Default Data Entry Check Sequence field, enter the check sequence (1 to 99) to use as the default when making entries for the pay code in Pay Period Entries or Employee Absences (only applicable if the pay code will not be defined for employees on the Wages screen in the Employee File); otherwise, leave the field blank to enter a specific check sequence to use for the pay code for each employee in the Employee File.
Tip: The check sequence is used to stipulate whether to include the wages for the entries from the pay code on only one check or separate checks if there are multiple pay codes or entries for an employee.
Note: This field is disabled and not applicable if Contract is specified in the Pay Code Type field.
If desired, enter the expense account number(s) to use as the default for the wages paid for the pay code in the Default Expense Accounts List; otherwise, leave the fields blank to enter the specific expense account number(s) for each employee in the Employee File. To enter a default account number, in the blank line (indicated with an asterisk) at the bottom of the Default Expense Accounts List, enter the account number in the Chart of Account Number field. If the account number is not known, click the down-arrow button to select the correct one, or press the Ctrl+F keys to access the search feature. Then click Enter Percents to designate what percent of the total rate is to be expensed to the specified account number; when entering the first account number, 100 will default in as the percent but can be changed as needed. To specify a fixed dollar amount of the total rate to be expensed to the specified account number, click Enter Dollars and then key the amount; the system will then calculate the percentage automatically.
In the Cross References List, select the taxes that will include the pay code in its taxable gross and the deductions that are to be expensed against the pay code by clicking the box to the left of the desired tax or deduction ID. A checkmark will appear in the box if the deduction or tax is selected. If the wages paid with the pay code are to be included in the taxable gross for a particular tax, the tax must be selected. If the deduction is to be expensed against the pay code, the deduction must be selected. To select all of the IDs for the taxes or deductions, click the box located by itself (without a label) at the top of the taxes and the top of the deductions.
Note: If this pay code should be taxed at the supplemental rate (only applicable for FIT and SIT), click the box for Supplemental Rate that appears to the right of the tax ID and description in the Cross References List.
Click the Save button.
Note: The new pay code will automatically have the Gross Earnings column selected on the Pay Codes screen in the Balancing Information option; if needed, make changes as necessary.