A pay group is a set of employees grouped for payroll processing purposes. A pay group is often organized as a department or a separate entity from the company itself. It can have employees of all levels: hourly employees to salaried employees, from part-time workers to full-time workers. The goal of a pay group is to provide cost savings, efficiency, and flexibility for the company.
Some of the components listed here are examples of pay groups. Here’s a breakdown of every component:
These are the following steps to assign your pay groups effectively:
Pay groups are needed for effective payroll management while simplifying its operations. It allows organizations to apply specific pay rules and calculations to employees with similar pay schedules and attributes.
Yes, pay groups can be adjusted in response to external or internal organizational changes ensuring that the payroll management system remains efficient and compliant with regulations.
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