Here is a description of each field.
Pay Type: Select the Pay Type from the drop-down list. The Pay Type determines the unit of pay for the employee: Hourly, Salary, or Salary Non-Exempt.
Pay Rate: If you selected an Hourly Pay Type, enter the hourly rate of pay (e.g. 14.75). If the employee’s Pay Type is Salary or Salary Nonexempt, enter the rate per pay period (e.g. 1500.00).
Pay Frequency: The pay frequency will automatically show the company’s default pay frequency (how often you run payroll). If the employee’s pay frequency is different than the company default, select the correct pay frequency from the drop-down.
W-2 Company Retirement Plan: Select Yes if the employee was an “active participant” for any part of the year in a company-provided retirement plan such as a 401(k), 401(b), 457, SIMPLE, SEP, etc. If you select Yes, the corresponding box on the employee’s W-2 will also be marked. For further instructions on W-2 reporting requirements, see IRS Instructions for Form W-2.
Status: The “Active” selection will default to Yes. As long as Yes is selected, this employee will appear on the payroll worksheet for payroll processing