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. On the Labor Categories tab in General Accounting Configuration (Configuration > Accounting System Settings > General), define labor categories.

   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 Employee Info Center.

2. In the Labor Category field on the Accounting tab of the Employee Info Center, assign employees to a category.
3. On the Cost/Pay Labor Category Table form, create pay labor category tables, adding categories and assigning rates.
4. On the Project Info Center form, open a project.
5. On the Time & Expense tab of the Project Info Center form, set the Pay Rate Method to From Category Rate Table.

   You can also establish a pay rate specific to an employee on the Time & Expense tab of the Employee Info Center. If a valid pay rate table is established in both the Project and Employee Info Center for a given payroll run, the project-level rate overrides the employee-level.

6. From the Rate Table drop-down list, select the Labor Category table to use.