Pay Types

1. Assign a unique identifier as the  Pay Type ID and enter a descriptive Name, such as Regular, Overtime, Premium, etc.

If you want this pay type to be available in the system, click on the Activate/Deactivate button on the toolbar displayed on the Pay Type/General screen after the Pay Type is saved.  A pay type must be active to track and process hours. It is set to Active by default.

To specify the Payroll Class, click and choose a payroll class from the pop-up list. Payroll Class is used for reporting purposes as well as to control the pay type codes that are available for particular functions; for example, only pay types with a payroll class of overtime can be selected for overtime calculation rules:

• Regular: set for pay types considered regular pay.
• OT1: use for pay types that are used for overtime at a defined multiplier rate (for example, time-and-a-half).
• OT2: use for pay types that are used for overtime at a second defined overtime rate (for example, double-time).
• OT3: Select if you wish a  rule to be configured with a specific pay type included in the calculation rather than relying on the Credit OT settings of the pay type configuration.
• OT4: Select if you wish a rule to be configured with a specific pay type included in the calculation rather than relying on the Credit OT settings of the pay type configuration.
• Premium: use for the pay types specified as premiums.
• Other: use for any pay types that do not fit one of the above classes. Hours assigned to this pay type can be reported as miscellaneous.

If you do not want this Pay Type to display miscellaneous pay on the time card, click to place a check mark next to Do Not Display Misc. Pay on Time Card.

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2. Specify General Pay options to determine how this pay type is to be used in time calculations. Click to place a check mark next to all options that apply:   
• Paid Time: hours encoded with this pay type is paid.
• Credit Premium: hours charged to pay type codes configured as Credit Premium are summed to determine if the premium rule hours worked criteria have been met. The hours are included whether they are Paid or Unpaid.
• Credit Daily Guarantee: check this field if hours charged to this pay type are included in the calculation of the minimum hours worked in the day to be eligible for the guarantee.
• Disqualify Accrual: check to include in the Disqualifiers section of the Accrued Leave Rule screen.
• Considered Worked: hours in this pay type are considered time worked for the purpose of being eligible for holiday benefit. This field should be checked when regular and/or overtime pay types are selected. It could be checked for vacation and other pay types depending upon the company’s holiday benefit policy. Select also if hours associated with this pay type should be included in the following accrued hours calculations: Average Daily Hours Worked, Average Daily Hours Scheduled, Hours Worked, and Average Weekly Hours Worked.
• Deduct Premium:  this setting is only available for pay types with Payroll Class of premium. When checked, the hours calculated as Allocate Towards Premium are reduced by the number of hours calculated as premium hours
• Credit Weekly Guarantee: check this field if hours charged to this pay type are included in the calculation of the minimum hours worked in the week to be eligible for the guarantee.
• CMS Worked Hours - Click this check box if this pay type code should be used to calculate deducted meal hours for CMS Reporting. CMS configuration occurs in the Pay Groups page.
• Allocate Towards Premium: hours encoded with this pay type can be converted into premium. This is used when a premium pay type is configured to be deducted. It is normally checked for pay types with a payroll class specified as regular but may also be checked for overtime and other payroll classes.
• Credit Towards Daily Total: check if hours charged to this pay type are to be included in the daily total amount on employee's time cards.
• Credit Accrual: hours associated with this pay type should be included in the following accrued hours calculations: Average Daily Hours Worked, Average Daily Hours Scheduled, Fixed Hours, Ratio, Hours Worked, and Average Weekly Hours Worked.

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3. Specify Usage options to determine how this pay type is to be used in miscellaneous pay time calculations:
• Adjust + AutoLoad: miscellaneous pay adjustments assigned to a pay type for which this option is selected are added to the automatically loaded hours. Miscellaneous pay adjustments that are assigned to a pay type for which this option is not selected overwrite the automatically loaded hours. When multiple adjustments are made and assigned to a pay type for which this option is not selected, the automatically loaded hours are overwritten.

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4. Specify Overtime Pay options to determine how this pay type is to be used in time calculations. Click to place a check mark next to all options that apply:
• Allocate Towards Overtime: hours encoded with this pay type can be converted into overtime in a pay period where overtime has been calculated.
• Credit Period Overtime: hours assigned to this pay type are counted toward the pay period overtime.
• Credit Day Overtime: hours encoded with this pay type are to be counted toward daily overtime.
• Credit Consecutive Overtime: hours encoded with this pay type are counted toward consecutive/non-consecutive day overtime.
• Credit Week Overtime: hours encoded with this pay type are counted toward weekly overtime.
• Require Job Code on Bulk Hours Time Card:  Selecting this field will require a Job Code to be entered for each new time entry and each time entry edited. This option is only available if the Time Entry Technique off the Pay Group/General tab is set to "Hours Entry." The default is unchecked.
• Require Reason: check if a reason code is required on punches to which this pay type is assigned.
• Allow for Time Off: this field is checked for all pay types that can be assigned to a Leave Request.
• Allow on Schedule: check if this pay type can be assigned to a schedule. Use when employees can trade schedules and the hours on the traded days are handled specially for overtime calculations. For example, if the hours are not included in overtime calculations, a pay type with no credit overtime fields checked is assigned to the schedule.
• Allow Accrual: check if this pay type is used for accrual purposes.
• Considered Absent: check if the employee is considered absent for a day on which hours are charged to this pay type.  Note that this field is used for documentation purposes only; it does not control any processes within the application.
• Allow for On Call: Pay Types with Allow for On Call flagged is available on the On Call Guarantee Rule screen.
• Pay Type for Prior Period Adjustment: click and in the pop-up list choose the from the list of available pay types designated for prior period adjustment.
  
   

Example for Credit OT

Example of a Vacation pay type that does credit the weekly OT calculation (i.e., assumes a weekly overtime rule after 40 hrs) -

• Employee takes 8 hours Vacation on Monday and works 33 Regular hours TU-FR for a weekly total of 41 hours. Since vacation hours do count toward the weekly overtime rule, the calculation result is 32 Reg hours, 8 Vac hours and 1 hour of OT

Example of a Vacation pay type that does not credit the weekly OT calculation (i.e., assumes a weekly overtime rule after 40 hrs) -

• Employee takes 8 hours Vacation on Monday and works 33 Regular hours TU-FR for a weekly total of 41 hours. Since vacation hours do not count toward the weekly overtime rule, the calculation result is 33 Reg hours and 8 Vac hours

Use the pay groups tab to associate pay types with pay groups. Here you select the pay types that are available to each type of user within each pay group on the miscellaneous pay screen of the time card. All pay groups are displayed on this tab. This tab is not available until you save the Pay Type.

• Allow Employee: select this circle to allow all employees in this pay group to use this pay type when entering miscellaneous pay transactions on their time card. When selected, supervisors and super-users automatically have permission to use this pay type as well.
• Allow Supervisor: select this circle to allow all supervisors in this pay group to use this pay type when entering miscellaneous pay transactions on time cards. When selected, super-users automatically have permission to use this pay type as well.
• Allow SuperUser: select this circle to allow all super-users in this pay group to use this pay type when entering miscellaneous pay transactions on a time card.

The Payroll/Coding tab is used to specify the payroll transfer code (also known as the earnings code) associated with hours transmitted to payroll. Additionally, an override pay rate for hours charged to the pay type can be assigned using the Pay Rate Modification configuration.

1. Transfer Codes – coding is established to represent the earnings code associated with these hours in the payroll system. The transfer codes specified here are sent to the payroll interface file for this pay type. When the transfer code is left blank, the hours/dollars encoded with this pay type are not transferred. The payroll company assigns these codes. Either the hours or the dollars code should be specified, but not both:
• Hours Code: enter the hours code to have the hours data transferred.
• Dollars Code: enter the dollars code to have the dollars data transferred.
• Report Group: this value is automatically filled in with the Pay Type ID when the pay type is saved. This value can be changed for customized reporting.
2. Pay Rate Modification – specify how additions or modifications are to made to the standard pay rate:
• None: no additions or modifications are made.
• Fixed Amount: the pay type is modified by an additional amount. Use the arrow keys to enter the additional amount in the Add to Rate field. For premium pay types, this is the rate per hour unless the premium pay type is configured to deduct premium; when configured to Deduct, the pay rate is equal to the configured Fixed Amount plus the employee’s base rate.

For pay types with Payroll Class of Regular or Other, the rate specified here is the rate applied to the employee’s hours; it overrides all other rates. For pay types with Payroll Class of OT1 or OT2, this rate is multiplied by the overtime multiplier configured for the employee’s pay group.

• Percentage: the pay type is modified by a percentage of the employee’s base rate. Use the arrow keys to enter the additional percentage in the Add Percent field. For premium pay types, this is the rate per hour unless the premium pay type is configured to deduct premium; when configured to Deduct, the pay rate is equal to the employee’s base rate plus the specified percentage of the base rate.

For pay types with Payroll Class of Regular or Other, the percentage specified here is applied to the employee’s base rate. For pay types with Payroll Class of OT1 or OT2, this rate is multiplied by the overtime multiplier configured for the employee’s pay group.

• Alt Rate 1: uses the value specified in the "Alt Rate 1" field of the profile edit screen.
• Alt Rate 2: uses the value specified in the "Alt Rate 2" field of the profile edit screen.

Base rate determination – the pay rate applied to an employee's hours is determined using the following priority: 1) pay type configuration, 2) work preference rate, 3) position configuration, 4) employee's primary rate.

1. Allow Entry settings determine where entries are allowed on the time card edit screen. If a field is not checked, the entry is not allowed. Click to place or remove the check mark for the following settings:
• Allow Regular Hours: check this field when you want this pay type to be assigned to a time punch. All pay types with a payroll class of regular are available on the pay type column of the time card.
• Miscellaneous Hours: check this field when you want this pay type to be assigned to a miscellaneous pay  transaction. When entering miscellaneous pay transactions, this field must be checked to enter hours. See related information on the Payroll/Coding section above.
• Allow Miscellaneous Amount: check this field if you want a pay type to be assigned to a miscellaneous pay dollars transaction. When entering miscellaneous pay transactions, this field must be checked to enter hours. Check only if dollars are to be entered and passed on through the payroll process.

Time Clock ID: type in the unique code to be used at the time clock when prompted for a pay type. Set to zero unless the pay type is to be used at the time clock.

Attendance Calendar: check if this pay type is to be reported on the Attendance Calendar report. When checked, enter a unique identifier in the Use Abbreviation box so this pay type is easily identified in the Attendance Calendar report.

2. Specify Tips Code if the pay type to be used for tips transactions. Your tips code can be set to None, Cash, or Credit.
3. Entry Restrictions allows the user to modify a pay type to allow restrictions to be configured. This action will implement data entry restrictions for miscellaneous pay entries. For example, you may set a limit on the hours an employee takes of a specific pay type (e.g., dental - 4 hours per pay period).

Only one of the following options may be selected for a pay type code:

• Default is None - the  system will not attempt to apply restrictions.
• When Use Default Restrictions is selected, the system will apply the default restrictions. The Default restrictions applied would be those set using the Set Restrictions Default option.
• When Activate Restrictions is selected, the Set Restrictions button will display.
  Selecting this button presents the following options:
  
  Activate Restrictions
• Day  (establish day limit - minimum/maximum)
  Week  (establish week limit - minimum/maximum)
  Pay Period  (establish pay period limit - minimum/maximum)
• Based on the User Type (i.e., Employee, System User, Supervisor, Manager) the user may apply limits (minimum, maximum) to each of the time periods listed above.
  
  Clicking on the Minimum and Maximum limit amount fields presents a dialog offering  the following options:
• Fixed Number (hours for Pay Types configured for hours entry and $ for Pay Types configured for $ entry)
• Scheduled Hours (Master Schedule or Actual Schedule)
• Profile Field (Scheduled hours per day, holiday override hours, UDF defined as integer or float)
   

Notes on Limits:

• Minimum hours value must be less than or equal to the maximum hours value.
• Minimum and Maximum values can be entered as positive, negative, or zero values.
• The Minimum and Maximum values may range from -9999.99 to 9999.99 (inclusive).

 

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