This article describes how set up and calculate minimum wage balance in Microsoft Dynamics GP and in Microsoft Business Solutions – Great Plains.
More Information
To set up and calculate minimum wage balance, follow these steps:
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Setup a minimum wage balance pay code. To do this, follow these steps depending on the program that you use.
Microsoft Dynamics GP 10.0 and higher versions:
On the Microsoft Dynamics GP menu, point to Tools, point to Setup, point to Payroll, and then click Paycode.
Microsoft Dynamics GP 9.0 and Microsoft Business Solutions – Great Plains 8.0
On the Tools menu, point to Setup, point to Payroll, and then click Paycode. -
Type or select a pay code, and then type a description in the Description box.
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In the Pay Type list, select Minimum Wage Balance.
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In the Pay Rate box, type a pay rate. The pay rate is the minimum hourly rate the employee must receive.
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In the Pay Period list, select a pay period.
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In the Subject to Taxes section, select the check boxes that are required for the pay code.
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To save the pay code setup, click Save.
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Set the employee card to use minimum wage balance. To do this, follow these steps:
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On the Cards menu, point to Payroll, and then click Employee.
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In the Employee Maintenance window, click Additional Information.
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In the Employee Additional Information Maintenance window, click to select the Calculate Minimum Wage Balance check box.
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Click OK to save the changes.
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Assign the pay code to the employee. To do this, follow these steps:
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On the Cards menu, point to Payroll, and then click Pay Code.
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In the Employee Pay Code Maintenance window, select or type the employee ID.
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In the Pay Code list, select Minimum Wage Balance.
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Click Save to save the changes.
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Note You may not create a transaction by using the Minimum Wage Balance Pay Code
Examples
For the following examples, the employee is assigned the following:
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The Hourly pay code at a rate of $2.00.
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The Reported Tips pay code.
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The Minimum Wage Balance pay code at a rate of $5.50.
Example 1
An employee receives a pay rate that is equal to minimum wage during training. The pay rate in the Hourly pay code is set to a wage of $5.50 and therefore no Minimum Wage balance is calculated or appears on the pay stub.
Example 2
An employee has worked 40 hours during the week. A transaction is entered for the Hourly pay code for 40 hours. The build finds that the minimum pay of $220 will not be met by using the transactions that were created. Therefore, the employee pay stub includes the Hourly pay code at $80.00, and the Minimum Wage Balance pay code at $140 ($220-$80). The calculated gross wages for the employee is $220.00.
Example 3
An employee has worked 40 hours during the week. The employee received $100 in tips. A transaction is entered for the Hourly pay code at 40 hours and the Reported Tips pay code at $100.00. The build finds that the minimum pay of $220 will not be met by using the transactions that were created, and calculates a Minimum Wage balance of $40. Therefore, the employee pay stub includes the Hourly pay code at $80.00 and the Reported Tip pay code at $100.00, and a Minimum Wage balance of $40. The calculated gross wages for the employee is $120.00 ($80+$40).
Example 4
An employee has worked 40 hours during the week. The employee received $200 in tips. A transaction entry is created for the Hourly pay code at 40 hours and the Reported Tips pay code at $200.00. The build finds that the minimum pay will be met by using the transactions that were created. Therefore, the employee pay stub includes the Hourly pay code at $80.00 and the Reported Tip pay code at $200.00. The calculated gross wages for the employee is $80.00.
