General Steps to Use Labor Categories for Pay Rates

You can set up labor categories and assign pay rates to them for employees and/or projects.

Follow these general steps to use labor categories for payroll purposes:

1. Define labor categories in Settings > Labels and Lists > Lists.

   You can also create labor categories using the Cost/Pay Labor Category Table form, if the category is for one-time use only in the particular table where the category is added. However, these categories are not available for selection from the Accounting tab of the Employees hub.

2. On the Employment Details tab in the Employees hub, assign a default labor category to employees in the Labor Category field.
3. On the Cost/Pay Labor Category Table form, create pay labor category tables, adding categories and assigning rates.
4. On the Accounting tab of the Projects hub form in the desktop application, set the Pay Rate Method to From Category Rate Table for a project. You can also establish a pay rate specific to an employee on the Time & Expense tab of the Employees hub. If a valid pay rate table is established in both the Projects and Employees hub for a given payroll run, the project-level rate overrides the employee-level.
5. From the Rate Table drop-down list, select the labor category table to use.