Pay Items

Overview

Core allows you to create a list of items that employees can be paid for, e.g., wages, regular pay, reimbursements, fringe benefits, bonus, holiday, commission, jury duty, vacation, etc. Core associates default pay items to relevant activity items. If a pay item is marked as Frequently Used or Default, whenever new employee profiles are created, those pay items automatically added for those employees. You can choose the frequency of these payments and assign taxes and withholdings to them. You can then assign these pay items to the employees to determine which payments they receive in a paycheck (as part of the main check or paid using a separate check).

Based on the company (employer) setup, Core automatically generates a list of standard pay items with customized settings. In the Pay Items screen, you can set the rules and codes for paying regular time, bonuses, sick/vacation/holiday time, etc. You can customize the payment frequency for the codes, set up rates or premiums to use, specify the US standardized categorization of wages for which this code will be factored in for taxation. For instance, regular hours are factored into federal wages if this option is checked.

Typically, pay items can factor into your base pay, 401(k)/403(b) calculations or hours worked. For instance, if an employee is set up to get $5,000 annually allocated into his 401(k), you can set up a pay item for that, which will reduce that balance until it gets down to $0. Bonus is not part of hours worked; in other words, it is not time entry dependent. However, regular pay can be time entry dependent.

For paying additional benefits for a certain period of time, recurring payments can be used.

Field Description

Basic Tasks

Add Pay Items

View Reports

Advanced Tasks

Export Pay Items

 

Field Description

Field Name Field Description
Payroll Lists > Pay Items > Add New Pay Item >
Pay Item The unique display name of a pay item. You can use an alphanumeric combination. It allows you to identify what the employee is being paid for, just like a category. For instance, regular pay for regular time. If you are setting up a pay item to identify reimbursable expenses, Core then maps its time to the payroll system.
Description A brief description of the pay item. It can be a longer description to describe what the pay item represents. Pay items are kept short for reporting purposes.
Pay Item Category You can select the type of pay item category here. You can have multiple pay items per pay item category. Some of the pay item categories include Regular, Supplemental, Combined, etc.
Payment Frequency It determines how often or at what interval the pay period get repeated, say once a month, first pay period of month, etc.
Frequently Used This tags the pay item as a frequently used or default item. 
Show Hours & Rate This option is checked when the pay item is supposed to be dependent on the time entries for payroll and you want to display the hours and rate for the same. Some pay items, such as bonus pay, are not dependent on time entries. This option is selected by default for all pay items except bonus and commission.
Check Method

You can choose how the paycheck for the payment is generated in relation to other pay items. It indicates whether the payment needs to be placed on a separate check or combined with the rest of the payment.

  • Combine with main paycheck: This combines or merges all pay items that are set as such and calculates the Wages, Taxes and Withholdings together. It allows you to create combined pay checks for an employee in a single payroll.

  • Separate: This creates separate Wages, Taxes and Withholdings for all pay items that are set as such. It allows you to create multiple pay checks for an employee in a single payroll. Separate paychecks are calculated as Supplemental Wages, having different percentage for calculation.

Withholdings: Assign Withholdings

You can select which withholdings are applicable to this pay item. In other words, you can specify all the withholdings that should be deducted from the paychecks associated with this pay item. Withholdings of type 'wage garnishment' do not display in this list.

Taxes: Assign Taxes

You can specify the different taxes that should be deducted from the paychecks associated with this pay item. Some of the taxes include Local Tax, FUTA , Federal Tax, State Tax, etc.

Accounts: Pay Item Expense Account

You can specify the expense account for the pay item. It is the account that records actual expense incurred by company on payroll.


Add Pay Items

To add a new pay item:

    1. Open the Pay Items screen from the side menu > Lists > Payroll.

    2. Click Add on the right panel.

    3. On the Add New Pay Item screen, enter the required information:

      • Pay Item: The unique display name of a pay item. You can use an alphanumeric combination. It allows you to identify what the employee is being paid for, just like a category. For instance, regular pay for regular time. If you are setting up a pay item to identify reimbursable expenses, Core then maps its time to the payroll system.

      • Description: A brief description of the pay item. It can be a longer description to describe what the pay item represents. Pay items are kept short for reporting purposes.

      • Pay Item Category: You can select the type of pay item category here. You can have multiple pay items per pay item category. Some of the pay item categories include Regular, Supplemental, Combined, etc.

      • Payment Frequency: It determines how often or at what interval the pay period gets repeated, say once a month, first pay period of month, etc. 
      • Pay Item Expense Account: You can specify the expense account for the pay item. It is the account that records actual expense incurred by company on payroll.

    1. Enter other details for the pay item, if needed.

      • Show Hours & Rate: This option is checked when the pay item is supposed to be dependent on the time entries for payroll and you want to display the hours and rate for the same. Some pay items, such as bonus pay, are not dependent on time entries. This option is selected by default for all pay items except bonus and commission.

      • Check Method: You can choose how the paycheck for the payment is generated in relation to other pay items. It indicates whether the payment needs to be placed on a separate check or combined with the rest of the payment.

        • Combine with main paycheck: This combines or merges all pay items that are set as such and calculates the Wages, Taxes and Withholdings together. It allows you to create combined pay checks for an employee in a single payroll.

        • Separate: This creates separate Wages, Taxes and Withholdings for all pay items that are set as such. It allows you to create multiple pay checks for an employee in a single payroll. Separate paychecks are calculated as Supplemental Wages, having different percentage for calculation.

    1. Click Assign Withholdings to assign the relevant deductions to the pay item. You can select which withholdings are applicable to this pay item. In other words, you can specify all the withholdings that should be deducted from the paychecks associated with this pay item. Withholdings of type 'wage garnishment' do not display in this list.

    2. Click Assign Taxes to assign the relevant taxes to the pay item. You can specify the different taxes that should be deducted from the paychecks associated with this pay item. Some of the taxes include Local Tax, FUTA , Federal Tax, State Tax, etc.

    3. Click Save & Done.

View Reports

To view a report:

  1. Open the Pay Items screen from the side menu > Lists > Payroll.

  2. In the list view, click More > View Reports.

  3. Select a report from the Report List dialog. It opens in the viewer.

  4. Preview the report and then choose to export or print it.

Export Pay Items

In Core, you can export the pay items to the Comma Separated Values file format. Core exports data from all available columns and not just the columns visible in the grid.

To export pay item records to a .CSV file, watch this video or follow these steps:

  1. Open the Pay Items screen from the side menu > Lists > Payroll.

  2. In the list view, click More > Export as CSV.

  3. A .csv export file is created and saved on your system at the default download location, say your desktop. Click to open the spreadsheet.

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