{"id":123880,"date":"2022-09-23T10:39:16","date_gmt":"2022-09-23T10:39:16","guid":{"rendered":"https:\/\/www.aihr.com\/?post_type=hr-glossary&#038;p=123880"},"modified":"2023-10-19T12:28:06","modified_gmt":"2023-10-19T12:28:06","slug":"pay-group","status":"publish","type":"hr-glossary","link":"https:\/\/www.aihr.com\/hr-glossary\/pay-group\/","title":{"rendered":"Pay Group"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\" id=\"h-what-is-a-pay-group\">What is a pay group?<\/h2>\n\n\n\n<p>A pay group is a set of employees grouped according to shared characteristics and paid on the same schedule. Grouping employees in this manner ensures easier processing of the payroll. A pay group enables a company to sort employees based on pay frequency.<\/p>\n\n\n\n<p>An employee may only belong to one pay group, and each group is assigned a group code in an organization&#8217;s payroll system. Companies typically have multiple pay groups based on, for example, pay frequency, employee type, and shared location.&nbsp;<\/p>\n\n\n<div class=\"gaihrpl gaihrpl-29\"><div class=\"gaihrpl-single aaihrpl-146\"><a class=\"gofollow\" data-track=\"MTQ2LDI5LDYwMA==\" href=\"https:\/\/www.aihr.com\/courses\/compensation-benefits-certification\/?il_id=banner&#038;il_name=cbcp&#038;il_creative=cbcp-value&#038;il_position=slot2\" target=\"_blank\" rel=\"nofollow\" style=\"display:block;padding-top:20px;\"><img decoding=\"async\" src=\"https:\/\/www.aihr.com\/wp-content\/plugs\/podcast-blog-ads-fade.jpg\" srcset=\"https:\/\/www.aihr.com\/wp-content\/uploads\/CBCP-Banner-Value.png 360w, https:\/\/www.aihr.com\/wp-content\/uploads\/CBCP-Banner-Value.png 360w, https:\/\/www.aihr.com\/wp-content\/uploads\/CBCP-Banner-Value.png 700w, https:\/\/www.aihr.com\/wp-content\/plugs\/ w\" sizes=\"(max-width: 480px) 360px, (max-width: 960px) 360px, (max-width: 1280px) 700px, 750px\" style=\"box-shadow: 0px 0px 20px 5px rgb(46 61 73 \/ 15%);display: block;margin: auto; border-radius:19px;\" class=\"small_ad\" \/><\/a>\r\n<br><\/div><\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-examples-of-pay-groups\">What are examples of pay groups?\u00a0<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Wage vs. salary:<\/strong> Some employees are paid a wage according to an hourly rate, while others are paid a monthly salary. These groups would appear on two separate payrolls.&nbsp;<\/li>\n\n\n\n<li><strong>Location:<\/strong> A company might have employees in different cities or even countries. A pay group may be named after each location and follow different payroll schedules.&nbsp;<\/li>\n\n\n\n<li><strong>Executive payment:<\/strong> CEOs and high-level executives may not be visible to everyone due to specific regulations and may form part of a separate pay group.&nbsp;<\/li>\n\n\n\n<li><strong>Pay frequency:<\/strong> Employees paid weekly, biweekly, and monthly would belong to different pay groups.<\/li>\n\n\n\n<li><strong>Union<\/strong>: Union and non-union employees.<\/li>\n\n\n\n<li><strong>Tax<\/strong>: Employees that are tax-exempt and those that are not.<\/li>\n<\/ul>\n\n\n\n<p>Here is an example of what a pay group would look like in the backend of a payroll system:&nbsp;<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><a href=\"https:\/\/www.aihr.com\/wp-content\/uploads\/Pay-Groups-Example.png\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.aihr.com\/wp-content\/uploads\/Pay-Groups-Example.png\" alt=\"Pay Groups Example\" class=\"wp-image-123881\" style=\"width:768px;height:510px\" width=\"768\" height=\"510\" srcset=\"https:\/\/www.aihr.com\/wp-content\/uploads\/Pay-Groups-Example.png 1024w, https:\/\/www.aihr.com\/wp-content\/uploads\/Pay-Groups-Example-300x199.png 300w, https:\/\/www.aihr.com\/wp-content\/uploads\/Pay-Groups-Example-768x510.png 768w, https:\/\/www.aihr.com\/wp-content\/uploads\/Pay-Groups-Example-510x339.png 510w\" sizes=\"auto, (max-width: 768px) 100vw, 768px\" \/><\/a><figcaption class=\"wp-element-caption\"><a href=\"https:\/\/docs.oracle.com\/cd\/E28727_01\/hcm91fp2\/eng\/psbooks\/hpay\/img\/gv_ExampleOfPayGroupSetupForSalariedExceptionHourlyAndHourlyEmp5d2b_hpay7fcf.png\" target=\"_blank\" rel=\"noreferrer noopener\">Image inspiration<\/a><\/figcaption><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-is-a-pay-group-assigned\">How is a pay group assigned?<\/h2>\n\n\n\n<p>A pay group is assigned based on key identifiers (location, frequency, executive vs. non-executive, etc.). A company might use a checklist to verify an employee has correctly been allocated to the pay group, such as:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Paid at the same frequency<\/li>\n\n\n\n<li>Uses the same bank<\/li>\n\n\n\n<li>Paid in the same location<\/li>\n\n\n\n<li>Have the same work schedule<\/li>\n\n\n\n<li>Affected by various labor laws in the same way<\/li>\n<\/ul>\n\n\n\n<p>When the employer makes changes to the pay group of a certain employee, this is typically applied to the next pay run.<\/p>\n","protected":false},"parent":0,"menu_order":0,"template":"","hr_glossary_category":[575],"class_list":["post-123880","hr-glossary","type-hr-glossary","status-publish","hentry","hr_glossary_category-compensation-benefits","description-off"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What is a Pay Group? | HR Glossary - AIHR<\/title>\n<meta name=\"description\" content=\"A pay group enables an employer to sort employees for payroll processing. 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