Pay Groups, Payroll Calendars, and Pay Periods: Implementation Activity

In the following implementation activity, you will learn how to create pay groups, configure payroll calendars, and generate pay periods for each pay group with the configured payroll calendar.

Story

Suppose that the SweetLife company is going to use the following pay period schedule:

  • Hourly employees are to be paid on a weekly basis.
  • Salaried employees are to be paid once a month.

Acting as a system administrator, you need to create two pay groups—one for hourly employees and one for monthly employees, and then prepare a pay period schedule by configuring payroll calendars and generating pay periods for these pay groups.

Configuration Overview

In the U100 Payroll snapshot, for the purposes of this activity, on the Chart of Accounts (GL202500) form, GL accounts that you will use for deduction and benefit expenses and liabilities, including 20300, 24100, 65100, 69500, and 69600, have been added.

Process Overview

You create pay groups on the Pay Groups (PR205000) form. For each pay group, on the Payroll Calendar (PR206000) form, you configure a payroll calendar. For each pay group with the configured payroll calendar, on the Pay Periods (PR201000) form, you generate pay periods.

System Preparation

Before you start configuring pay groups, payroll calendars, and pay periods, you should launch the MYOB Advanced website and sign in as a system administrator by using the following credentials:

  • Username: gibbs
  • Password: 123

As a prerequisite activity, in the company to which you are signed in, be sure you have completed the Overtime Rules: Implementation Activity.

As a prerequisite activity, in the company to which you are signed in, be sure you have performed the activities in the preceding lessons of this part of the course.

Step 1: Creating a Monthly Pay Group

To create a monthly pay group, do the following:

  1. Open the Pay Groups (PR205000) form.
  2. On the form toolbar, click Add Row.
  3. In the table, specify the following settings for the added row:
    • Pay Group ID: MONTHLY
    • Pay Group Name: Salaried employee group
    • Earnings Account: 69500
    • Deduction Liability Account: 20300
    • Benefit Expense Account: 69600
    • Benefit Liability Account: 20300
    • Tax Expense Account: 65100
    • Tax Liability Account: 24100
    • Is Default: Cleared
  4. On the form toolbar, click Save.

Step 2: Creating a Weekly Pay Group

To create a weekly pay group, do the following:

  1. On the form toolbar of the Pay Groups form, click Add Row.
  2. In the table, specify the following settings for the added row:
    • Pay Group ID: WEEKLY
    • Pay Group Name: Hourly employee group
    • Earnings Account: 69500
    • Deduction Liability Account: 20300
    • Benefit Expense Account: 69600
    • Benefit Liability Account: 20300
    • Tax Expense Account: 65100
    • Tax Liability Account: 24100
    • Is Default: Cleared
  3. On the form toolbar, click Save.

Step 3: Configuring a Payroll Calendar for the Monthly Pay Group

To configure a payroll calendar for the monthly pay group, do the following:

  1. On the Pay Groups form, click the line with the MONTHLY pay group in the table.
  2. On the form toolbar, click Calendar.

    As a result, the Payroll Calendar (PR206000) form opens with the MONTHLY pay group selected in the Pay Group box.

  3. In the Period Type box, make sure that Monthly is selected.
  4. On the form toolbar, click Create Periods.

    As a result, the table on the form is populated with template periods.

  5. On the form toolbar, click Save.

Step 4: Configuring a Payroll Calendar for the Weekly Pay Group

To configure a payroll calendar for the weekly pay group, do the following:

  1. On the Payroll Calendar form, in the Pay Group box, select WEEKLY.
  2. In the Period Type box, select Weekly.
  3. On the form toolbar, click Save.

Step 5: Generate Pay Periods for the Monthly Pay Group

To generate pay periods for the monthly pay group, do the following:

  1. Open the Pay Periods (PR201000) form.
  2. In the Pay Group box, select MONTHLY.
  3. Make sure that the current year is selected in the Year box.
  4. On the form toolbar, click Create Periods.

    The Create Periods dialog box opens.

  5. In the dialog box, review the default settings and click Generate.

    As a result, the dialog box closes. The system populates the table on the form with pay periods according to the template of the payroll calendar that was set up for this pay group.

  6. On the form toolbar, click Save.

Step 6: Generate Pay Periods for the Weekly Pay Group

To generate pay periods for the weekly pay group, do the following:

  1. On the Pay Periods (PR201000) form, in the Pay Group box, select WEEKLY.
  2. Make sure that the current year is selected in the Year box.
  3. On the form toolbar, click Create Periods.

    The Create Periods dialog box opens.

  4. In the dialog box, review the default settings and click Generate.

    As a result, the dialog box closes. The system populates the table on the form with pay periods according to the template of the payroll calendar that was set up for this pay group.

  5. On the form toolbar, click Save.