Table of Contents

About employees in payroll

Employees are the heart of any payroll system. OnePayroll extends the standard Business Central employee record with comprehensive payroll-specific fields and workflows.

Employee record overview

Each employee in OnePayroll includes:

Core information (from Business Central):

  • Employee number (unique identifier)
  • Name
  • Address
  • Job title
  • Department
  • Manager
  • Start date

Payroll extensions (added by OnePayroll):

  • Pay group assignment
  • Employee type (determines pay unit and compensation method)
  • Work location
  • Payment methods for direct deposit
  • Garnishment details
  • Benefits enrollment
  • Pay unit and pay factor (derived from employee type)
  • Rehirable flag
  • Self-service status

Employee types

Employee types are user-defined codes that control how an employee's compensation is calculated. Each employee type specifies:

  • Code — A unique identifier (up to 20 characters)
  • Description — A human-readable name
  • Pay Unit — The unit of compensation (e.g., Annual, Hourly)
  • Compensation Method — Determines how pay is calculated

Compensation methods

Each employee type uses one of two compensation methods:

Regular

  • Employee receives a fixed amount per pay period
  • Pay is divided evenly across periods based on the pay unit conversion factor
  • Common for: salaried office staff, management, professionals

Work-Based

  • Employee is compensated based on units of work (hours, days, etc.)
  • Pay varies each period depending on work reported
  • Common for: hourly workers, production staff, temporary employees

You define employee types on the Employee Types page. Because employee types are user-defined, you can create as many as needed to represent your organization's compensation structures.

Tip

The Pay Conversion Factor on the Employee Types page shows the conversion factor from the assigned pay unit, which determines how the employee's rate converts to a per-period amount.

Employee status

OnePayroll defines an employee lifecycle through four statuses:

Onboarding

  • New employee being set up
  • Not yet included in regular payroll processing

Active

  • Currently employed and participating in regular payroll
  • Most employees are in this status

Offboarding

  • Employee is leaving the organization
  • Final payroll processing and separation tasks

Inactive

  • No longer employed or temporarily not working
  • Doesn't appear in payroll processing
  • Historical records retained for audit

Status transitions

Onboarding (new hire setup)
   ↓
Active (employed)
   ↓
Offboarding (separation in progress)
   ↓
Inactive (no longer employed)
Note

The status is determined automatically based on the employee's employment date and termination date.

Pay group assignment

Each employee is assigned to a pay group that determines:

  • How often they're paid (weekly, biweekly, monthly)
  • When payroll periods occur
  • Which GL accounts are used for posting
  • Whether they're included in a specific payroll run

Employees in the same pay group (e.g., "Biweekly Salaried") are processed together during payroll.

Compensation structure

Employee compensation is determined by several related elements:

Employee type

  • Determines the pay unit and compensation method (Regular or Work-Based)
  • Set on the employee card

Pay units

  • How compensation is expressed (Annual, Hourly, Daily, etc.)
  • The pay unit's conversion factor translates between different units
  • Defined on the Pay Units page and linked through the employee type

Pay types

  • Specific earnings and deductions applied to the employee
  • Each employee may have a different combination of pay types

Benefits and deductions

Employees can be enrolled in:

Benefits

  • Health insurance (employee + employer cost sharing)
  • Retirement plans (401(k), pension)
  • Other voluntary benefits
  • Benefits can have coverage tiers and life event changes

Garnishments

  • Wage garnishments (court-ordered, child support, etc.)
  • Processing order determines calculation priority
  • Protected by disposable pay rules and exempt amounts

Other deductions

  • Union dues
  • Loan repayments
  • Flexible spending accounts
  • Employee advances

Tax information

Employees have tax details controlling withholding (US localization):

Federal

  • Filing status (Single, Married, etc.)
  • Withholding credits and adjustments
  • Additional withholding amount (if any)

State (if applicable)

  • State of residence
  • Filing status
  • State-specific withholding parameters

Local (if applicable)

  • Local tax jurisdiction
  • Any special local tax rules

Historical tracking

OnePayroll maintains complete employee history:

Snapshots

  • Historical record of employee payroll configuration
  • When did pay change? When did employee move departments? etc.
  • Enables audit trail of all changes

Payroll entries

  • All historical payroll for the employee
  • Can reprint pay stubs or review past compensation
  • Supports tax statement generation

Benefits history

  • When benefits were added, removed, or changed
  • Coverage history for compliance

Employee vs. payroll master data

OnePayroll stores some data differently:

Data Stored In Purpose
Name, address BC Employee Human resources
Pay group, employee type OnePayroll Payroll processing
Bank account OnePayroll Direct deposit
Tax withholding OnePayroll Tax calculation
Garnishments OnePayroll Payroll deductions
Benefits OnePayroll Benefits administration

OnePayroll's payroll-specific data integrates with BC's employee master data.

Next steps

Learn how to work with employees:

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