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• Multiple unions for one rate class
  You can have multiple unions for the same rate class. This is useful if you have employees from multiple trades employed on the job , or an employee who works for another union local (besides his home local) for a short amount of time. Conversely, you can also have one union be part of multiple rate classes.
• Multiple calculation methods for benefits and deductions
  You can calculate benefits or deductions based on % of Net Wages, % of Gross Wages, % of Deduction, and % of Earnings Wages, just as you can in Microsoft Dynamics GP. In addition, the system allows fixed Microsoft Dynamics GP benefits and deductions to be calculated, even if they are not set up as being part of a rate class, for example, if an employee has garnishments set up in GP.
• Prevailing wage and benefit determination
  You can implement prevailing wage and fringe rates into your payroll calculations, based on the information from the government-supplied Davis-Bacon Act (DBA) wage determination sheet. This information is based on the union, county and occupational (fed class) code and includes standard and overtime rates for wage and fringe benefits.

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In a union environment companies are faced with complex methods to determine the rate of pay for an employee. In addition to specific wage rates based on the worker’s experience level and classification within a union, the location of the work and the employee’s relationship with the company can become a factor. See Over-scale pay rate support for unionsScale Pay Rate Support for Unions for more information.

Before you begin

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

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Setting up rate classes

Setting up rate classes involves the following: Table of ContentsmaxLevel2minLevel2

Step 1: Enable the rate class feature

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

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

Step 2: Set 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. Choose 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 check box checkbox so that you can set up rate classes to automatically calculate those rates and fringes. If this check box checkbox is marked, the second is automatically marked. When you mark this check boxcheckbox, the Use Highest Wage Rate check box 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 check boxcheckbox, and leave the other check box checkbox unmarked. The system deter mines determines the highest rate from the following: 1) employee 2) rate class 3) job rate class and 4) transaction (if different).
4. Choose 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. Choose Microsoft Dynamics GP > Tools > Setup > Job Cost > Payroll Setup > Rate Class.
2. Choose a Rate Class and choose Copy.
3. Choose 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. Choose Copy.

Step 3: Set up rate class detail

You can set up multiple rate classes for multiple position/pay code/deduction-benefit category combinations. You can enter special rates for benefits and deductions using either a fixed dollar amount or 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. Choose 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. Choose 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 jobsjobs (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.

1. Choose Cards > Job Cost > Job.
2. Complete the Job Maintenance window, assigning a rate class to the job. See Creating a job recordJob Record. 
3. Choose Save.

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

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