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How to set up Pay Steps in Human Resources for Microsoft Dynamics GP

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Pay Steps are used to associate an employee's amount of time in a position with a rate of pay. This article explains the process of creating a pay step table, assigning employees, and processing the pay rates.

Applies to:   Microsoft Dynamics GP
Original KB number:   2001014

Activating Pay Steps

  1. Point to the Microsoft Dynamics GP menu, point to Tools > Setup > System > Human Resources Preferences.
  2. Mark the Use Pay Steps/Grades checkbox.
  3. Select the type of date for the basis of the pay step increase. These choices are Hire Date, Adjusted Hire Date, Seniority Date, or Manual.

Creating Pay Step Tables

  1. Point to the Microsoft Dynamics GP menu, point to Tools > Setup > Human Resources, and then select Pay Step Table.
  2. Enter a Pay Step Table ID for this table and description that explains it.
  3. Select the Unit of Pay; you will need to create separate tables for hourly and salary employees.
  4. Enter an Effective Date when the new period begins for the new pay rates. Add Column.
  5. The Step/Grade should be entered in a sequential number sequence.
  6. For the Months in Step, specify the range of steps for this new pay rate.
  7. Enter an amount for the specified effective date.
  8. Continue Steps 5 through 8 until you have entered all desired pay rates.
  9. You can continue to enter effective dates for each new period rate.

Assign a Pay Step Table to Employees through the Employee/Pay Step Table Assignment window*

  1. Point to the Microsoft Dynamics GP menu, point to Tools > Setup > Human Resources > Pay Step Table, and then select the Assign Employees button.
  2. Enter or select a Pay Code.
  3. Under Base Step Increases on, select a type of date to base step increases on. These choices are Hire Date, Adjusted Hire Date, Seniority Date, or Manual.
  4. Select the ranges of Employees. You can base these choices on Employee ID, Location, Department, Position, Union, or Class ID.
  5. You can mark the check boxes to exclude employees already assigned to a pay step table or employees that have a pay increase on hold.
  6. Select Redisplay for the employee information you have selected to be populated.
  7. Select the employees to be assigned to this pay step table, or select Mark All to select them all, and press the assign button.
  8. Select Process to process the changes.

Assign a Pay Step Table to an employee on the Employee Pay Code Maintenance window

  1. Point to Cards, point to Payroll > Pay Code.

  2. Select the employee and the Hourly or Salary pay code.

  3. Use the drop-down to select when the Base Step increases. The options include Hire Date, Adjusted Hire Date, Seniority Date, or Manual.

  4. Use the Look Up to select the Pay Step table to be assigned to this employee.

  5. You must have an amount greater than zero on the FTE field. This is used as a multiplier for the rates. The default value for this field is 1.0. Use the FTE value to change individual employees' pay rates without changing the pay step table amounts. For example, enter an FTE less than 1.0 to decrease a full-time position salary for a part-time employee, or enter an FTE greater than 1.0 to increase the pay rate for an employee providing greater qualifications and productivity. This value must be a positive number.

  6. Select Save.

Activating Post-Dated Pay Rates

  1. To open the Activate Employee Post-Date Pay Rates window, point to Transactions > Payroll > Activate Post Dated.
  2. Select the Range to search on; you can select ranges from the following: Effective Date, Employee ID, Pay Code, and Reason for Change.
  3. In the Sort By field, select how you would like the results to be sorted. Select Redisplay for these results to be sorted.
  4. Next to each post-dated pay rate, select Activate for this rate to become active.
  5. Select Process for the post-dated pay rates to become active.
  6. Verify on the Employee Pay Code the new rate appears. Point to Cards, point to Payroll, and select Pay Code.

After you have verified the new rate, you can process payroll as normal and the new rate will maintain.

If you need to in the future inactivate or turn off pay steps, see Error message when you assign a pay code to an employee in Microsoft Dynamics GP: "You must enter a step/grade value before this record can be saved".