Important Information About Switching Pay Groups

If it is necessary to switch a payee's pay group after the payee has already been paid, a new validity period must be created on the Payee record so that the pay group can be changed from the start date of the new validity period. When switching a payee's pay group it is important to note the following:

• If a new validity period is created to transfer a payee from one pay group to another any earnings paid to the payee since the transfer are treated independently of earnings paid prior to the transfer. For example, if a payee's earnings for a prior period need to be adjusted after the payee is transferred to a new pay group, an adjustment pay batch must be processed for the payee's original pay group irrespective of whether the payee's new pay group has matching pay periods. In the adjustment pay batch the system will calculate the adjusted earnings and tax withholding without taking into consideration any earnings paid to the payee since the transfer to the new pay group.

• There are situations where there could be a gap between the last pay period of the payee's old pay group and the first pay period of the payee's new pay group. Where this is the case, it is important that in the first pay batch that the payee is paid after being assigned to the new pay group that the Only Include Payees With Timesheets option is not checked when creating the pay batch. This will ensure that the pay batch will load all payees and any of their associated unpaid timesheets that may otherwise fall into the gap between the pay periods of the old and the new pay group and would therefore otherwise not be paid. Any payees who are not intended to be paid in the pay batch can be manually removed from the pay batch once the pay batch has been created if necessary. Note also that in this scenario a payee who has been switched from one pay group to another may have two sets of timesheets in the first pay batch after being assigned to the new pay group; timesheets for the last pay period of the old pay group and timesheets for the first pay period of the new pay group. If that occurs a manual tax adjustment might be necessary at the Tax stage of the pay batch to prevent the payee from being overtaxed due to the inclusion of the timesheets from the last pay period of the previous pay group in the current pay batch.