Creating Payroll Items

To create payroll items:

1. Go to Lists > Employees > Payroll Items > New.

2. If you have a NetSuite OneWorld account, from the Subsidiary list, select a subsidiary.

3. In the Item Type field, select a payroll item type. For more information see Payroll Item Types.

4. In the Item Name field, enter a name for the payroll item.

5. To include a description, which appears on the Summary subtab of employees’ paychecks, enter a Description.

   Descriptions can help employees to understand the different items on their paychecks.

   Note:

   Employees view their paycheck records in the Employee Center. To ensure that employees with access to the Employee Center can see descriptions, go to Setup > Payroll > Set Up Payroll. Check the Show Payroll Item Descriptions on Summary Tab of Paychecks box.

6. If the Account Category list is displayed, select the type of account to associate with this payroll item.

   Note:

   This option appears for Earning and Deduction payroll items only if the Expand Account List for Payroll Items box is checked. Go to Setup > Payroll > Set Up Payroll.

7. From the Expense Account, Liability Account, or Asset Account list, select the general ledger account to associate with the payroll item.

   Note:

   For employer contribution payroll items, you must select both a liability account and an expense account.

8. If the payroll item is associated with a liability account, from the Agency list, select the tax agency to which this deduction is paid. The Agency ID for this tax vendor is pulled automatically from the vendor record. For more info, see Vendor Records Overview and Associating a Vendor With a Payroll Item.

9. From the Pay Code list, select the appropriate pay code for the payroll item. The pay code determines how the payroll item is taxed and reported and whether the item appears on employees’ W-2s. For more information, see Standard Pay Codes.

10. Depending on the payroll item type, you might also be able to do the following:

    • Set a limit for the payroll item. For more information, see Setting a Limit for a Payroll Item.

    • Derive the rate for the payroll item from a payroll item, item group, or retirement plan. For more information, see Payroll Item Derivation.

    • Apply a default pay rate to the payroll item. For more information, see Applying a Default Rate to a Payroll Item.

11. To specify where this payroll item amount should appear in payroll reports, from the Report Section list, select a report.

12. Click Save.

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