Payroll: Set Up Payroll Classes

Payroll classes define different pay scales within your organization. To ensure that all crew members receive the correct pay for their work, each level of pay should be defined as a separate payroll class.

Let's consider some examples:

• For a company that pays crew members based solely on their position, payroll classes may look something like this: Pilot, Captain, Mate, Tankerman, Deckhand, etc.
• For a company that pays crew members based on both their position and level of experience, payroll classes may look something like this: Pilot I, Pilot II, Pilot III, Captain I, Captain II, Captain III, etc.
• For a company that pays each crew member differently based on their own negotiated rate, one payroll class could be configured for each crew member.

You can simplify your payroll setup by using a base rate. Most earning codes in a payroll class are usually factors or multiples of a single rate. By configuring a base rate for the payroll class and flagging earning codes to inherit it, you only have to manage one rate per class instead of one per earning code. This makes setup and annual rate escalations much easier.

New payroll classes are active by default.

For information on finding, duplicating, or deactivating existing payroll classes, see "Manage Payroll Classes." For information on assigning payroll classes by asset and position, see "Set Up Payroll Class Mappings."

Set Up Payroll Classes

You can set up payroll classes on the Setup > Payroll > Payroll Classes tab.

To create a payroll class

1. Go to the Setup > Payroll > Payroll Classes tab.
2. Click New Payroll Class.
3. In the Name field, enter a name for the payroll class, for example, "Pilot I."
4. (Optional) In the Accounting Code field, enter an accounting code. This will enable you to export your payroll data or integrate it with an external accounting system, so be sure it aligns with your other systems. It will also appear on the Payroll Details tab, giving a clear view of what's being paid to each crew member.
5. (Optional) In the Limit to Payroll Groups field, select one or more payroll groups to limit this payroll class to those groups. If left empty, the payroll class is available to all payroll groups.
6. (Optional) Under Base Rates, click Add Base Rate, then complete the following fields:
   • Rate: Enter the base rate in the currency of your choice for this payroll class.
   • Effective Date: Select the date the base rate takes effect.
7. (Optional) Repeat step 6 to add additional base rates. You can add past and future base rates, but only one base rate is active at any given time. To plan ahead for a rate change, enter the new rate with a future effective date.
8. (Optional) Under Earning Code Rates, click Add Earning Code, then complete the following fields:
   • Earning Code: From the list, select an earning code to include in this payroll class.
   • (Optional) Use Base Rate: Select this checkbox to have this earning code use the payroll class's base rate instead of a rate you configure here.
   • Rate: Enter the rate in the currency of your choice for this earning code.
   • Quantity: Select how you want to track this earning code. See "Payroll: Set Up Earning Codes" for details on each option.
   • Pay Out Factor and Bank Accrual Factor: Indicate how this rate will be paid out to and banked for your crew. For example, a company that pays crew in full, without banking any of their pay for later, would enter a Pay Out Factor of 1 and a Bank Accrual Factor of 0. A company that pays crew half of their rate and banks the rest to pay them when they aren't working would enter a Pay Out Factor of 0.5 and a Bank Accrual Factor of 0.5.
   • Effective Date: Select a date prior to any payroll you will be calculating to ensure that the settings will apply.
   • (Optional) Add Rate: Click to add another rate to this earning code, for example, to track any historical pay rates or set up a future rate increase.

   NoteIf you select the Use Base Rate checkbox, the Rate and Effective Date fields and the Add Rate option are hidden, because the base rate and its effective date are managed in the Base Rates section.

9. (Optional) Repeat step 8 to add additional earning codes to this payroll class.
10. Click Save Changes.

Assign a Payroll Class to a Crew Member

You can assign a payroll class to a crew member on the Management > People > People tab.

To assign a payroll class to a crew member

1. Go to the Management > People > People tab, then select the crew member you want to assign the payroll class to.
2. On the Payroll sub-tab, click Edit.
3. Under Payroll Classes, click Add Payroll Class.
4. From the Payroll Class list, select the payroll class you want to assign to the crew member.
5. In the Effective Date field, select a date prior to any payroll you will be calculating to ensure that the settings will apply.
6. (Optional) Select the Protected checkbox to flag this payroll class assignment as protected. If your payroll scheme has been configured to recognize protected payroll class assignments, selecting this option will prevent other payroll class assignments, such as defaults from a crewing requirement, from taking effect. If your payroll scheme has not been configured in this manner, selecting this option will have no effect.
7. Click Save.

To remove a payroll class from a crew member

1. Go to the Management > People > People tab, then select the crew member you want to remove the payroll class from.
2. On the Payroll sub-tab, click Edit.
3. Under Payroll Classes, click the remove icon (X) to the right of the payroll class you want to remove.
4. Click Save.