Your payroll codes are used to determine what wages employees are paid for the time they work. You'll note (if you haven't already) that there is no pay or wage information in LMN. That's because LMN exports hours, employees and payroll codes to applications like Quickbooks, or Paychex. Your payroll software reads the employee who is to be paid, then uses the payroll code to determine the applicable wage for those hours.
For example, in Quickbooks, employees have payroll codes for hourly and overtime wages. This is what tells Quickbooks what to pay staff for hourly or overtime. If the employee was paid a 'premium wage' for other work types (like snow or unionized work) - you could setup additional payroll codes for that staff. LMN exports the employee, the hours worked and the payroll code to be applied so your payroll package knows what wage to apply to any/all hours.
Quickbooks example of payroll codes. Scroll further down to watch a video explaining Payroll Codes.
In this video, you'll learn:
- What a payroll code is used for
- How to add new payroll codes to LMN Time
- How payroll codes are used in Quickbooks to pay employees the correct wage