Unlocking Efficiency: NetSuite’s SuitePeople Time Off Management Part 2

by | May 23, 2024 | NetSuite Fundamentals, New to NetSuite


Effective payroll management is essential for every business, guaranteeing accurate employee compensation while adhering to legal standards. NetSuite provides robust solutions for payroll management, enabling the creation of custom payroll items that seamlessly integrate with time off types. This article explains the importance of creating payroll items accurately, the benefits of syncing them with time off types for a more efficient payroll workflow, and a step-by-step guide on correctly creating new payroll items in NetSuite. For more information on Time Off Management Setup, explore our previous blog here: Unlocking Efficiency: NetSuite’s SuitePeople Time Off Management Part 1  

Accuracy and Compliance 

One of the primary reasons for creating payroll items correctly is to ensure accuracy and compliance with labor laws and company policies. By accurately categorizing earnings, deductions, and taxes, you can ensure that employees are paid correctly and that your payroll processes comply with relevant regulations. 

Consistency and Efficiency 

Creating payroll items correctly helps maintain consistency in how earnings and deductions are processed. This consistency not only ensures that employees are paid correctly each pay period but also streamlines the payroll process, saving time and reducing the likelihood of errors. 

Reporting and Analysis 

Accurate payroll item setup is essential for generating accurate reports and conducting meaningful analysis. By correctly categorizing earnings and deductions, you can easily track labor costs, analyze trends, and make informed decisions about your workforce. 

Integration with Time Off Tracking 

Syncing payroll items with time off types in NetSuite can further streamline your payroll process. By linking time off types to specific payroll items, you can automatically calculate and apply earnings and deductions based on employee time off. This integration helps ensure that employees are paid accurately for their time off and eliminates the need for manual calculations. 

Employee Satisfaction 

Accurate and timely payroll processing is essential for employee satisfaction. By ensuring that employees are paid correctly and on time, you can enhance morale and reduce turnover, leading to a more productive and engaged workforce. 

Creating Payroll Items 

You can create payroll items for each type of earning, deduction, and contribution that you use in your organization. You then assign payroll items to employees. 

First, go to Lists > Employees > Payroll Items > New

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

In the Item Type field, select a payroll item type.  

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

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

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

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.  

Click Save. 

Note: After you create a payroll item, be sure to update the payroll information.  


Creating Payroll Items correctly and syncing them to Time Off Types in NetSuite is crucial for ensuring accuracy, compliance, efficiency, and employee satisfaction. By taking the time to set up your payroll items correctly and integrating them with your time off tracking system, you can streamline your payroll process and improve overall payroll management in your organization. 

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