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HR and Payroll for Business Central

HR and Payroll for Business Central

Create a Payroll Code

Step 1: Go to the ‘Full Payroll Menu”

Step 2: Choose Payroll Codes

  • This is found under the Setup Column second button down from the top
  • Screen will show you current set up Payroll Codes starting with Earnings

Step 3: To create a new pay code,  click the +New button in the ribbon bar

Step 4: The Payroll Code Setup Card will then appear. Fill this out

  • Type – is a drop down menu with what you are creating. Options are:
    • Earnings
    • Deduction
    • Withholding
    • Employer Tax
    • Direct Deposit
    • Payment
    • Employer Contribution
    • Reimbursement / Draw
    • Advance / Loan
  • Code – is the Code label for the Payroll Code you are creating
    • Open Field for creation
  • Description – this is where you put the description of the code you are creating
  • Manual Input Allowed
    • When set to true you can manually override the amount calculated in the payroll line.
  • Pay Type Code – customized field to link BC Resource Timecard to pay code
  • Benefit Accrual Code – customized field to link BC Resource Timecard Benefit Codes
  • Reverse Sign Allowed – Allows the payroll code to be manually reversed in the payroll document using the reverse sign
  • Process Procedure Code – Field is used if you need to apply a process procedure to a payroll code
  • W2 Classification – Drop down selection of W-2 codes to use on specific break outs of deductions to Box 12 with a code or Box 14.
  • Sorting No. – Using this field you can set the order of the columns in the payroll report when the report is fun to group by payroll code.
  • State Code – Populate with Withholding codes set to specific states
  • Blocked – us this to Block a Payroll Code to no be used.
  • Use Default State Earnings – When set to true, the earning for this tax will be calculates based on the default state in the payroll header. Only editable when mulit-state calculations are turned on and your payroll code is withholding or Employer tax.
  • Tax Reporting Type – use with tax codes
    • Federal
    • State
    • Local
  • Leave Type – use with tax codes
    • FLI
    • SDI
  • Workers Comp Code – Set to true if the Payroll Code is used for Workers Comp
  • Zero Hour Reason – use is pay code will not have hours associated
    • Bonus
    • Royalty
    • Severance

Step 5: Once you have created the Payroll Code, you then need to create the posting setup. This is found on the ‘Full Payroll Menu’ under ‘Posting Setup’

Step 6: Depending on the Payroll Code you set up is where you will add the General Ledger Posting detail

  • Employee Posting Group – defines the Posting Groups and bank account for payments
  • Earnings – this is where you define the debit account of your Earnings Pay codes
  • Withholdings / Deductions – this is where you define the credit posting account of Withholding and Deductions
  • Employer Taxes – this is where you define the debit and credit accounts for Employer Taxes
  • Employer Contributions – this is where you define the debit and credit accounts for Employer Contributions
  • Reimbursements – this is where you define the debit account for Reimbursement payments
  • Payment Advances – this is where you define the debit account of Payment Advances
  • Payments – this is where you where the payments are posting (typically this is set to the Posting Group Bank Account)

Step 7: Now that you have created the code and added the GL posting setup, you then need to clarify if there needs to be a line calculations added to the Payroll Calc. Formula. To get there, Full Payroll menu -> Setup Column -> Payroll Calc. Formulas