# Payroll Group
Payroll Groups classify employees who share the same payroll cycle and salary structure. Groups are linked from Salary Configuration, where the hourly rate for production wages is defined per group or employee.
Overview
Go to Payroll → Settings → Payroll Group.
A Payroll Group is a named set of employees. Use groups to organize salary configurations — monthly components, overtime rates, and the Hourly Rate used when production vouchers calculate hourly production wages.
List columns
| **Column** | **Description** |
|------------|-----------------|
| Id | System ID. |
| Name | Group name. |
| Description | Optional note. |
| Employees | Employees assigned to this group. |
Quick filter tabs: Active, Suspended.
Quick Start
1. Create a group
Go to Payroll → Settings → Payroll Group, click New, enter Name and optionally assign Employees.
2. Configure salary and hourly rate
Open Salary Configuration, select the payroll group (or a specific employee), and enter payment lines plus Hourly Rate (Used for employee production wage).
3. Enable production wages
Turn on Enable Piece-Rate/Hourly-Rate Wages in Production in Payroll Settings. See the production wage flow there.
Fields
| **Field** | **Description** |
|-----------|-----------------|
| Name * | Group display name. |
| Description | Optional note. |
| Employee | One or more employees to assign to this group. Employees can belong to one payroll group at a time via their profile. |
Hourly Rate for Production
The hourly rate is not stored on the Payroll Group record itself. It is set on Salary Configuration (Payroll → Salary Configuration):
| **Salary Configuration field** | **Description** |
|----------------------------------|-----------------|
| Payroll group | Links the configuration to this group (or choose a specific employee instead). |
| Hourly Rate (Used for employee production wage) | Rate per hour for hourly production wages. |
| Overtime Rate Per Hour | OT rate for pay-run OT calculations. |
| Holiday OT Rate Per Hour | OT rate on holidays. |
Hourly production wage formula:
```
Wage amount = Hours worked × Hourly Rate (from Salary Configuration)
```
Piece-rate production wage uses the rate on the BOM, not the hourly rate:
```
Wage amount = Quantity produced × Piece Rate (from BOM)
```
Verify production wages before pay run using Production Wage and the Employee Piece Rate Report.
How It Works
- Employee assignment — Assign employees on the group form or from the employee profile. Group membership drives which Salary Configuration applies.
- Salary Configuration — Each group (or employee override) has payment category lines, calculation basis (monthly/daily), effective date, and production wage rates.
- Pay Run — When a pay run is created for an employee, the active Salary Configuration for their payroll group supplies earning amounts and OT rates.
- Production — On production voucher approve, hourly wage lines multiply hours by the employee's configured hourly rate; piece-rate lines use the BOM rate.
Actions
List header: New
| **Action** | **Description** |
|------------|-----------------|
| View | Opens the group in read-only view |
| Edit | Opens the edit form |
| Delete | Removes the group when not referenced |
| Suspend / Activate | Disables or re-enables the group |
Form buttons: Save / Update, Reset, Cancel
FAQ
Where do I set the hourly rate?
On Salary Configuration, not on the Payroll Group form. Select the payroll group and enter Hourly Rate (Used for employee production wage).
Can one employee have a different rate than their group?
Yes. Create a Salary Configuration targeted to the individual employee instead of the group.
Do I need a payroll group for every employee?
Recommended for structured payroll. Employees without a group can still have an employee-specific Salary Configuration.
How do I assign employees to a group?
Set Payroll Group on the Employee profile — the group drives default salary configuration and group additional payments.
Can I use a payroll group for bulk additional payment?
Yes. Select the group on Additional Payment type Group — one line is created per employee in the group.
What happens if I suspend a payroll group?
Suspended groups cannot be selected on new employee records or group payments. Existing salary configurations remain until edited.
Is payroll group the same as employee group in HR?
No. Payroll Group is for salary structure and pay-run components. HR Employee Group is for HR reporting and workflow — they are separate masters.