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Retirement Pay Codes

Use the Pay Codes page to add, edit, and delete pay codes for the Ohio eSERS and STRS retirement reporting systems. You must set up separate sets of pay codes for each retirement system. Refer to Pay Code Table for more information.

  1. On the start page, choose Human Resources, then Reference Tables

  2. Choose Pay Codes.

  3. Filter records using the search criteria.

  4. To add a record, click Add new. Refer to Field Descriptions and enter valid information in the required fields. Click Accept.

  5. To edit a record, double-click the record. Update the record and click Accept.

  6. To delete a record, select the record, and click Delete. Click Yes.

Field Descriptions

General Tab



Pay Code

The code identifying the Pay Code record and its pay category, such as regular salary, overtime, or bonus. The code may include any combination from 001 through 999.


We recommend you use all three digits to structure your codes to enable the system to sort Pay Code records properly. For example, enter 001 as the code for the first record and not simply 1.

Pay codes for leave without pay (LWOP) must begin with 09. The codes 090 through 098 are reserved for user-defined LWOP codes. Code 099 is reserved for system-generated LWOP. For example, excess leave usage automatically charges the leave to pay code 099. Even though the code is reserved, you must add pay code 099 to define its parameters.

Refer to Leave Table for more information.


A detailed description of the Pay Code record that appears on reports and data entry pages.

For example, Regular Pay or Contract Pay.


Check Title

The title to print on paycheck stubs.

For example, you could use Reg, Pay, or Contractpay as the check title.


Pay Type

The code identifying how pay is issued for this pay code, whether based on a per-unit rate or a flat amount.

This setting must be compatible with the Pay Method in the job classes you intend to associate with this Pay Code record. The following listing shows the Pay Methods that are compatible with the various Pay Types:

Pay Types

 Compatible Pay Methods

Hourly, Daily, and Per Unit Rate

 Hourly, Daily, and Range/Step Rate

Per Period Rate

Pay Period and Range/Step Pay Per

Timecard Amount and Special Amount

 None Required

A pay code needs to have a pay type of D - Daily or H - Hourly to be used in an amount-based retroactive time load. Use pay codes with any Pay Type setting for a percentage-based retroactive time load.

Valid values:

  • D - Daily - Enables pay to be calculated at a daily rate entered in an employee’s Pay Rate record.

  • H - Hourly - Allows regular pay to be calculated based on the hours entered on timecards multiplied by the rate defined in an employee’s Pay Rate record. Pay codes for calculating FLSA overtime must use an hourly pay type. For more information, refer to the descriptions for the FLSA Overtime and FLSA Calculation Type fields.

  • P - Per Period Rate - Applies if the pay is for a defined period, such as weekly or biweekly. Salaried employees are usually paid at a period rate.

  • U - Per Unit Rate - Bases pay on the units (other than days or hours) entered on timecards. For example, a referee in a school district might receive $75 per game, or a part-time housing inspector in a municipality, $50 per inspection. Pay in such cases would be determined by the number of units worked, that is, the number of games or inspections. You also can use this pay type for a pay code referencing extended leave. In this case, you need to define the appropriate leave code in the Leave to Sub Time from field on the Payroll tab.

  • S - Special Amount - Applies to employees paid a set amount at specific times during the year. For example, if you need to pay athletic coaches or auxiliary police at certain times of the year, this pay type allows you to include the amounts in payroll processing. This differs from Per Unit Rate because the Special Amount pay type assumes the pay code is associated with a flat amount that the employee is paid whenever the pay code is included in a pay run. Enter a Special Pay Frequency on the Payroll tab for records with the Special Amount pay type.

  • A - Timecard Amount - Allows you to enter a pay amount on the timecard.


Per-unit pay amount or percentage for determining an employee’s gross pay when this pay code is used in payroll processing. The type of data you enter depends on the pay code’s Pay Type setting. Percentages should be entered in decimal format, while amounts are entered as dollars and cents.


Follow these guidelines for the Rate field:

Pay Type

In the Rate field, enter:


A factor to multiply by the employee’s hours worked. This factor accommodates overtime, shift differential percentage premiums, and leave-without-pay accounting. For example, for overtime at time-and-a-half, enter 1.5.

To enter a shift differential premium, remember to make your entry in decimal format. For example, to add a five percent shift premium, enter 1.05.

Daily or Per Unit Rate

The amount paid per timecard unit.

Special Amount or Timecard Amount

Zero (0).

The Pay Code record’s Rate field is ignored.


Expenditure account used by the system for distributing salary charges posted to the Fund Accounting system.

When the salary is distributed, the account listed on the Pay Code table overrides the Account code from the default distribution on the employee’s Pay Rate Information page.

Leave this field blank if you want to use the account distribution from the employee’s Pay Rate record associated with this pay code.

OH Retirement System

The retirement system for service credit days worked.


  • STRS - State Teachers Retirement System

  • SERS - School Employees Retirement System

  • NONE - Does not apply

SERS Earning Code

Code for SERS earning. This is only available for the SERS retirement system.


  • 01- Regular

  • 02 - Supplemental

  • 03 - Retro Pay

  • 04 - Stretch Pay

  • 05 - Grievance Pay

  • 51 - Adjustment to Regular Contribution

  • 52 - Adjustment to Supplemental

  • 53 - Adjustment to Retro Pay

  • 54 - Adjustment to Stretch Pay

  • 55 - Adjustment to Grievance Pay

  • 91 - Missed Regular Contribution

  • 92 - Missed Supplemental Contribution

  • 94 - Missed Stretch Pay

Exclude from Quarterly Wage

Select this option to exclude the pay code from Quarterly Wage report calculations.

Taxes Tab

Use the Taxes tab to determine the taxes the pay code is subject to.

Subject to FICA/Medicare Section




Setting determining if the employee's pay is subject to FICA (Social Security), Medicare, or both taxes. In cases where employees hold similar positions but have different FICA/Medicare tax liabilities, you must define separate pay codes to reflect the individual tax circumstances.


  • F - Subject to FICA/Medicare - The pay code is subject to FICA and Medicare.

  • M - Medicare Only - The pay code is subject to Medicare taxes but not FICA.

  • P - From Primary Pay - Subject to FICA/Medicare based on the FICA field setting for the Pay Code record from the employee's primary pay rate.

  • N - Not Subject - The pay code is not subject to FICA or Medicare.

Exempt from Taxes Section



Federal Tax

Indicates whether the pay code is exempt from federal taxes. This setting affects payroll calculations and is reflected in year-end W-2 reporting. Select this option if the pay code is exempt.

Entries in an employee's Pay Rate record override this setting. You can apply the pay code, and federal tax exemption setting to a group of employees and make exceptions for individuals if necessary.

State Tax

Indicates whether the pay code is exempt from state tax assessment. Select this option if the pay code is exempt. This setting affects payroll calculations.

Entries in an employee's Pay Rate record override this setting. You can apply the pay code and state tax exemption setting to a group of employees and make exceptions for individuals if necessary.

Local Tax

Indicates whether the pay code is exempt from local tax assessment. Select this option if the pay code is exempt. This setting affects payroll calculations.

Entries in an employee's Pay Rate record override this setting. You can apply the pay code, and local tax exemption setting to a group of employees and make exceptions for individuals if necessary.

Deductions Tab

Use the Deductions tab to enter all deduction codes the system must not assess against gross wages determined by this pay code.



Exempt Deductions

Eighteen fields for entering deduction codes to be excluded in calculating deductions from the gross wages determined by this pay code. For example, if only base wages are used to calculate pension benefits, you should enter the deduction code for pension benefits for all pay codes not associated with employees' base wages.

Only deductions that use percentage rate deduction methods can be exempted since an employee's base wages do not determine amount-based rates. Therefore, you should only select deductions with one of the following Deduction Method field settings:

  • Table %

  • Employee %

  • % Plus Additional Amount

  • Crossover

  • Incremental Crossover %

The system does not check if the deductions are based on percentages. However, entering an amount deduction or a deduction fully paid by the employer does not affect the records.

If you need to exempt more than eighteen deductions for a pay code, click Additional Exemptions and enter the exemptions on the Additional Exemptions page.

Payroll Tab

The Payroll tab includes fields related to leave accrual and charging, payroll timecards and Time Entry, and other payroll and personnel settings, such as calculating FLSA overtime and encumbering salary amounts.

Leave Time Factors Section



Leave to Add Time to

Leave code used to track earned leave. If the pay code is entered on an employee's timecard, the leave bank is automatically updated with the time earned upon payroll calculation. For example, when tracking compensatory time earned.

The first digit in the three-digit code identifies the leave bank. The system uses this digit to cross-reference with the specific code on an employee's Leave Bank tab.

Add Factor

Factor from 0.00 to 9.99 for calculating leave time earned based on timecard hours (Timecard Hours x Add Factor = Compensatory Leave Time). To enter a factor, you must enter a code in the Leave to Add Time to field.

Examples: If an employee receives a one-half hour of compensatory leave for each timecard hour, enter 0.5 in the Add Factor field. If leave is accrued on a time-and-a-half basis per timecard hour, enter 1.5.

Leave to Subtract Time from

Code to use in timecard or attendance entry to identify the leave bank for subtracting leave time. The code's first digit identifies the bank.

You cannot use this field if a code is entered in the Leave to Add Time to field. If needed, you should set up separate codes for adding and subtracting time from a leave bank.

Notify for Extended Leave

Option for the Consecutive Leave Notification. The selected pay code is included if this option is selected and the Consecutive Leave for Employee notification is turned on.

Other Payroll Factors Section



Pay Time Type

Selection defining how the pay code is used for entry and processing of an employee’s time worked. You can designate the pay code as regular, overtime, leave without pay, extended leave, compensatory, allowance, or non-cash.


  • A - Allowance - Allows reporting allowances on W-2s for uniforms and similar reimbursed expenses.

  • C - Compensation Earned - Calculates compensatory leave time using the following equation: Compensatory Leave Time = Add Factor x Time card Hours. This method requires a code in the Leave to Add Time to field.

  • E - Extended Leave - Allows for extended leave for time reported under a pay code with a pay type Per Unit Rate. You can use this setting to account for employee pay during an extended leave of absence. Make sure to define a leave bank in the Leave to Sub Time from field on the Payroll tab.

  • L - Leave Without Pay - Allows you to dock the employee’s pay. Use this setting for leave code 099 and any other leave-without-pay code. 099 is used for system-generated leave-without-pay.

  • N - Non-Cash - Provides for W-2 reporting of non-cash payments, such as lunches for cafeteria workers.

  • O - Overtime - Indicates overtime wages are maintained separately in employee records and are listed separately in certain payroll reports.

  • R - Regular Pay - Allows benefits to accrue for all regular pay codes, such as regular pay, authorized leave, and holidays.

Special Pay Frequency

User-defined code categorizing how often a special pay is to be paid, for example, M for monthly or A for annually. These codes are entered in the third Payroll Setup window to identify the special pays to include in payroll processing.


This field only applies for pay codes with a pay type of Special Amount. Otherwise, leave the field blank. 

Subject to Worker’s Comp

Indicates whether earnings under this pay code are subject to Workers’ Compensation premium calculations. Select this option if Workers’ Compensation applies.

Refer to Workers’ Compensation Table for more information.

Encumber Salaries

Determines if the gross earnings under this pay code are to be encumbered in the Fund Accounting system. Select this option to encumber the earnings.

The account used for the encumbrance is identified in the employee’s Pay Rate record. Encumbrances are recalculated by running the Payroll Encumbrance option during payroll processing.

Track Position Salaries

Determines if the gross earnings for a position under this pay code should be tracked in Position Control. Select this option to enable tracking.

During payroll calculations, the system examines salary records for pay rates with active positions. If the job class in a pay rate has active positions assigned and the Track Position Salary field in the class’s pay code is selected, the rate’s earnings are added to the Actual Salary field in the Position record.

FLSA Overtime

Determines if this pay code should be used as the default for calculating Fair Labor Standards Act (FLSA) overtime. Select this option to designate this as the default FLSA pay code.

Only one pay code can be specified as the FLSA default. Once a pay code is set up for this purpose, you cannot select the field for other pay codes. The FLSA pay code must have a Pay Type setting of Hourly.

Refer to Entering FLSA Overtime for more information.

FLSA Calculation Type

Determines how FLSA overtime pay should be calculated.


  • A - Amount Only - Uses the amount paid to calculate FLSA overtime. For example, if a shift differential is paid, the differential amount is included in FLSA calculations, but the hours are not.

  • H - Hours Only - Uses hours to calculate FLSA, but not an amount.

  • B - Both - Uses both hours and amounts in calculations. In most cases, you should use this selection because it covers how overtime can be calculated: amount, hours, or a combination of the two.

  • D - Dormant - Applies to special pay that is always included in the rate the system calculates for FLSA overtime. You must set up the pay code for the employee in an active pay rate, but it does not have to be loaded or entered into timecards. The system divides the annual salary by the number of FLSA cycles per year, which is added to the eligible amount for each FLSA cycle.

  • N - No (default) - Excludes the pay code from FLSA calculations.

Your selection depends on the Pay Code record’s settings in the Pay Type and FLSA Overtime fields:

  • If FLSA Overtime is selected:
    You must select N - No in the FLSA Calculation Type field, and the pay code must have an Hourly pay type. In this case, the pay code is reserved for FLSA overtime and cannot be entered on timecards.

  • If FLSA Overtime is not selected, the following are the FLSA calculation types that can be used with different pay types:

    FLSA Calculation Type

    Pay Types

    Any, except D - Dormant


    A - Amount Only, D - Dormant, or N - No

    Per Period Rate

    A - Amount Only or N - No

    Daily, Per Unit Rate, or Timecard Amount

    N - No

    Special Pay

Exclude from Retro Pays

Determines whether the pay code should be excluded from retroactive pay calculations. Select this option to exclude the pay code.

Retroactive pay can be issued as an amount to employees for pay codes using either an hourly or daily pay type. In addition, you can issue percentage-based retroactive pay for pay codes with any pay type setting.

Time Entry Allowed

Determines how the pay code relates to Time Entry. Specifically, this field lets you define the following Time Entry parameters for the pay code:

  • Whether you can use the pay code in association with Time Entry. You can only use a pay code in Time Entry if it has a pay type of Daily, Hourly, or Per Unit Rate.

  • Whether the pay code should appear in Time Entry based on an employee’s Pay Rate record or if it should be available for all employees through the Add Other Time option on the Time Entry page.

  • Whether the pay code is eligible for association with Leave records through the Leave Table page’s Pay Codes option.


  • N - Not Time Entry - Prevents the pay code from being used in Time Entry. However, you can still use it when entering timecards during payroll processing.

  • Y - Assoc Time Entry - Allows you to use the pay code in Time Entry in one of two ways:

    1. In association with an employee’s Pay Rate record, in which case the pay code would display by default on the employee’s Time Entry page.

    2. In association with a Leave record, in which case the employee would access the pay code through the Time Entry page’s Add Other Time option. You must select Y - Assoc Time Entry if you want employees to enter their leave time via Time Entry. Refer to Time Entry's Leave Codes Table for more information.

  • O - Other Time Entry - Defines the pay code for all employees via the Time Entry page’s Add Other Time button.
    To link departments to the pay code for use in Time Entry, click Department Links. Refer to Pay Codes Table for more information.

Approval Level

The approval level necessary before the time entered against this pay code can be processed in a pay run. You can select one of nine approval levels, 1 being the lowest and 9 the highest.

This field is required if the pay code is associated with Time Entry. Leave the field blank if the pay code is not associated with Time Entry.

For example, an approval level of 5 indicates that time must be approved by a department supervisor with at least level 5 security, as defined on the Time Entry Info tab of the Employee Information page.

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