Rate classes allow you to assign wage rates, benefits, and deductions to union employees by category. Within a particular rate class/union, you can create multiple rate classes based on different combinations of positions, pay codes, and deduction/benefit categories.

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Before You Begin

Before you use rate classes, make sure the following have been set up:

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Setting

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Up Rate Classes

Setting up rate classes involves the following.

Step 1: Enable the Rate Class Feature

You enable the rate class feature in the Posting Options window.

1. Select Microsoft Dynamics GP > Tools > Setup > Job Cost > Job Cost Setup > Posting Options.
2. In the Payroll section, mark the Rate Class checkbox.
3. Select Save.

Step 2: Set

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Up Rate Class Codes

This is where you enter your rate class codes, enable prevailing wage and fringe rate calculation feature (which includes use highest wage rate), or only the use highest wage rate (excluding prevailing calculation).

1. Select Microsoft Dynamics GP > Tools > Setup > Job Cost > Payroll Setup > Rate Class.
2. Enter a Rate Class code name. Give some thought as to how you want to categorize/name your rate classes. For example, if you are setting up your rate classes to reflect the type of job, for example, heavy commercial vs. light commercial, indicate that in the rate class name.
3. Complete the remaining fields, as necessary.
   • Rate Class
     Enter the name of your rate class, being as descriptive as possible.
   • Description
     It might be a good idea to include the names of the unions assigned to this rate class, in this description.
   • Use Prevailing Wage and Fringe (Davis Bacon)
     If your organization pays its employees' wages and fringes based on the government-supplied wage determination sheet, mark this checkbox so that you can set up rate classes to automatically calculate those rates and fringes. If this checkbox is marked, the second is automatically marked. When you mark this checkbox, the Use Highest Wage Rate checkbox is marked automatically, as the prevailing feature must first determine the highest wage rate for an employee.
   • Use Highest Wage Rate
     If your organization pays its employees the highest rate no matter what, mark this checkbox, and leave the other checkbox unmarked. The system determines the highest rate from the following: 1) employee 2) rate class 3) job rate class and 4) transaction (if different).
4. Select Save.

Copying Rate Classes

You can copy an existing rate class to save time. When you copy a rate class, all position/pay code/deduction-benefit category combinations are copied also.

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1. Select Microsoft Dynamics GP > Tools > Setup > Job Cost > Payroll Setup > Rate Class.
2. Select a Rate Class and select Copy.
3. Select Copy to the message asking if you want to copy the rate class.
4. Enter a New Rate Class, Rate Class Description, and New Union Code.
5. Select Copy.

Step 3:

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Set Up Rate Class Detail

You can set up multiple rate classes for multiple positions/pay code/deduction-benefit category combinations. You can enter special rates for benefits and deductions using either a fixed dollar amount or a percentage of gross wages. These amounts override any rates set up in the Employee Deduction Maintenance window (for deductions) and the Employee Benefit Maintenance window (for benefits).

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Step 4: Assign Rate Classes to Union Employees

You can assign a rate class to each union employee. Each employee can be assigned to only one rate class.

1. Select Microsoft Dynamics GP > Tools > Setup > Job Cost > Payroll Setup > Employee Codes.
2. Enter an Employee ID.
3. Enter a Rate Class. The Union Code field automatically defaults to the union code associated with that rate class.
4. Enter a Federal Classification Code.
5. Select Save. You can also assign a rate class to an employee in the following ways:
   • Assign a rate class to a job that an employee is associated with. This overrides the rate class in the Employee Maintenance Codes window. See Assign rate classes to jobs (below).
   • Assign the rate class to payroll transactions. The rate class is assigned to the employee for that transaction only and overrides the rate class assigned in the Job Maintenance and Employee Maintenance Codes windows.

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Step 5: Assign Rate Classes to Jobs

You can assign one rate class for each job. The rate class entered in the Job Maintenance window overrides the rate class in the Employee Maintenance Codes window.

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For information on processing payroll with rate classes, see Processing Payroll with With Union Rate Classes (optionalOptional). This section also contains examples of the many uses of the rate class feature.

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