How to set up and calculate minimum wage balance in Microsoft Dynamics GP

To set up and calculate minimum wage balance, follow these steps:

1. 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.
2. Type or select a pay code, and then type a description in the Description box.
3. In the Pay Type list, select Minimum Wage Balance.
4. In the Pay Rate box, type a pay rate. The pay rate is the minimum hourly rate the employee must receive.
5. In the Pay Period list, select a pay period.
6. In the Subject to Taxes section, select the check boxes that are required for the pay code.
7. To save the pay code setup, click Save.
8. Set the employee card to use minimum wage balance. To do this, follow these steps:
   1. On the Cards menu, point to Payroll, and then click Employee.
   2. In the Employee Maintenance window, click Additional Information.
   3. In the Employee Additional Information Maintenance window, click to select the Calculate Minimum Wage Balance check box.
   4. Click OK to save the changes.
9. Assign the pay code to the employee. To do this, follow these steps:
   1. On the Cards menu, point to Payroll, and then click Pay Code.
   2. In the Employee Pay Code Maintenance window, select or type the employee ID.
   3. In the Pay Code list, select Minimum Wage Balance.
   4. Click Save to save the changes.

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:

• The Hourly pay code at a rate of $2.00.
• The Reported Tips pay code.
• 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.