Pay Group

What is a pay group in payroll processing?

A pay group is a payroll processing classification that groups employees who share the same pay schedule, pay cycle, or other payroll characteristics. Common groupings include pay frequency (weekly, biweekly, semimonthly, monthly), geographic location, business entity, or employment classification (salaried vs. hourly). Pay groups let payroll teams process batches of employees together while keeping distinct rules for each group, which matters for multi-state and multi-entity employers.

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