Set up a pay group

What this achieves

A pay group is a set of employees paid on the same calendar, under one legal entity. Payroll runs against a pay group rather than against the whole company, so the group decides who is paid together and when.

Required role: Administrator.

Before you start

Create the legal entity first. A pay group belongs to one entity, and the entity is what supplies the group’s currency.

Steps

Go to Payroll → Pay Groups.
Select Add Group.
Enter a Name.

Example: HC Corp UK Ltd — Monthly Salaried.
Choose the Legal Entity.
Choose the Pay Frequency.
Set the Pay Day (of month).
Leave Active switched on.
Select Save.

The Add Group form naming a monthly salaried pay group against the UK legal entity, with the hint that currency is set by the legal entity to GBP, a Monthly frequency and a pay day of 25.

Currency is inherited, not chosen

You do not pick a currency on a pay group. It comes from the legal entity, and the form tells you which currency the group will use once you have chosen the entity.

Example: choosing HC Corp UK Ltd gives the group GBP, because that is the entity’s currency. Paying someone in a different currency means a different entity, not a different pay group.

Pay frequency

Option	Description
Monthly	Paid once a month.
Bi-weekly	Paid every two weeks.
Weekly	Paid every week.

Example: HC Corp UK Ltd runs a monthly group for salaried staff in London and a weekly group for warehouse staff in Operations. Both sit under the same legal entity, because the entity is the same registered company — only the calendar differs.

Options on this screen

Option	Description
Name	What the group is called. It identifies the group when you create a run.
Legal Entity	The registered company employing this group. It sets the group’s currency and the statutory rules that apply.
Pay Frequency	How often the group is paid.
Pay Day (of month)	The day of the month the group is paid on.
Active	Whether the group can be used. Turn it off to retire a group without deleting it.

What happens next

A pay run is created against one pay group for one period, so the groups you define here determine how many runs you process each month. Employees are drawn into a run through the group, and the group’s entity decides which statutory profile applies to them.