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employee group for payroll area

Former Member
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can any one tell me if we have 3 employee groups then is it required to create 3 payroll area, or we can create only 1 payroll area to process the payroll?

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Answers (4)

Answers (4)

former_member193652
Active Contributor
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Dear Angel,

Payroll area is related to period you are running payroll for employees. If you are running for all employees in a monthly period you will just need one payroll area. But if for a group of them for example group A you are running payroll weekly you will need one more payroll area also.

By the way I recommend to have one more payroll period and call it no-payroll for example and if you have any employees which the company don't run payroll and pay them, for example employees of sub contractors, assign them to this payroll area. In this case If anybody leaves company you should assign him/her into no-payroll area also

Regards,

Omid

Former Member
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Hi Angel,

We will design the py areas based on the client pay structure, check with your requirement & based on that you can design but it is not mandatory to take each py for each esubgroup, it's all depend on pay date & grade level pay.

:Kedhar

Former Member
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Hi,

It's not like that. Payroll area is to whom your going to run the payroll.

Lets say for an example: if you want to run payroll for trainees on 25th and you wanted to run payroll for contract employees on 15th and all other employees you wanted to run on 27th. In this case you have to create 3 payrol areas with the help of feature ABKRS. Actually payroll area is according to your business requirement. It's not a one to one mapping with employee group.

Regards,

Dinesh

Former Member
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Hi Angel,

The payroll area is not technically bound to the ee group.

It's only for organising your payroll. If one of your groups is weekly paid and the others monthly, then you'd need at least to payroll areas.

But there is no technical link (you can create one, if you want to, with feature ABKRS, if your ee groups reflect your payroll organisation).

Criteria for PY areas:

- country

- frequency

- date payroll is run

- who is running it

- further criteria depending on country. E.g. In the UK tax district no is determined by payroll area. Therefore, I recommend you let us know, which country you are talking about, so that local experts have a chance to comment on it.

Kind regards

Sven