Location:  Payroll -> General Setting -> Payment Group Setting

Click on 'Create' to create a new payment group.

 Code
Enter the Code for the New Cut Off Setup here.

 Description
Enter the Description of the new Cut Off Setup in the column here. 
Payment Period
Select the payment period group for the cut off period.
Period
Select the Rate Cut Off Period, which day of the month for the Cut Off Period, and the payroll calendar.

For a more detail step by step guide to creating Payment group go to this link Step 4.0. Create Payment Group