Employees → Employee Wizard → Step 2

Next, you will enter pay information, set up direct deposit, assign the employee to a home division/department, and designate accrual plans (if applicable).

Pay Group*: The default is the organization’s pay frequency. If more than one pay group exists, assign the employee’s specific pay group.  Pay Groups can be set up to group employees for different pay rules, such as: pay frequencies, locations, or to separate reporting.

Pay Types Include:

• Hourly: Employees are paid based on the rate of pay and hours you enter.
• Salary: Employee will receive the Per Pay Salary entered.
• Auto Hourly: Hourly employees that are paid the same number of hours each pay period.
• Manual Salary: For employees who have a fluctuating salary, meaning the salary might not always be the same. Nothing is paid unless the salary is manually keyed on the payroll grid.
• Commission Only: Used to pay workers who will only earn commission pay.
• 1099: Independent contractor paid a flat dollar amount.
• 1099 Hourly: Extremely uncommon. Used for independent contractors, paid hourly.

💡 Hourly or Salary are the most commonly used pay types.

Frequency*: The frequency at which the employee will be paid (important for correct tax calculation). Only edit this field if the employee is paid at a different pay frequency (this is uncommon).

Normal Hours*: Defaults to the Pay Frequency’s normal hours. Weekly hours are 40, Bi-weekly hours are 80, Semi-Monthly are 86.67, and Monthly are 173.33.  (Standard calculation is 40 hours x 52 weeks = 2080 hours annually, then divided by your pay frequency)

Annual Salary, Per Pay Salary, and Hourly Rate: When you edit one of these three fields, the other two will calculate accordingly as they are linked.

Alternate Pay Rates: Default is Rate 2, Rate 3, and Rate 4. Easily change rates directly in the Time Entry Grid when the employee has alternate rates saved in their profile.

Rate 2, Manager Rate, and Weekend Rate are examples (above) of alternate rates of pay for different positions. Contact your Payroll Support Team if you want additional rate fields to be renamed or added to your account. 

Direct Deposit Details

[See Direct Deposit: Options Defined] for detailed instructions for each field. Direct Deposit is one of the methods Heartland offers for employee payment, which sends funds electronically into their banking accounts. (Known as ACH payment)

Organization Fields

The employee’s default Division, Department, Job, and/or Location (when applicable) can be assigned here. These are based on your organizational structure and set up during Implementation.  Existing can be updated, and new ones added at any time.

Accrual Plans

If you track Accruals, we will ask you to complete our Accrual Questionnaire Form to build your plans per your employee handbook [see Adding a New Accrual Plan]. Assign any plan(s) that should apply to the employee and continue. 

Next. (Continue in Step 3: Federal Income Tax)