Default Payroll Schedules
Payroll schedules include essential information such as Payroll Frequency (weekly, bi-weekly, semi-monthly, monthly), Overlapping strategies, and Overtime calculation strategies.
Note: If you create more than one payroll schedule, it should be because different groups of employees are being paid differently. If it was a mistake during the configuration, you can only edit or delete it if a ticket is open for our Support and Development departments.
To create a Payroll Schedule, follow this path:
Settings > Payroll Schedules > New Payroll Schedule
Label: This is the name of your Payroll Schedule. It will appear in the Default Pay Schedule option from the Default Settings.
Frequency: You can choose how often you will generate payroll-ready data by selecting one of the four options available: Weekly, Bi-Weekly (every two weeks), Semi-Monthly (twice a month), or Monthly.
Period Start Time: Use this option to follow regulations in jurisdictions where you must precisely set the payroll time. If that’s not your case, leave the default value. If you are unfamiliar with Pay Period Start Time, please contact your assigned Client Success Team Member, who will assist you in setting it up properly.
First Period Start Date: This is the same as the previous setting. You can usually choose any day unless you have specific regulations to follow.
Period Overlapping Strategy: Choose an overlapping strategy for shifts that span two payroll periods. Two options are available: split shift hours in their respective periods or allocate the entire shift hours to the starting period.
Holiday Overlapping Strategy: Decide how you want to pay your employees during holiday shifts that span two payroll periods. You can either pay the holiday rate on hours that overlap with the holiday’s effective period or pay the entire shift as a holiday if it started during a holiday.
Holiday Overtime Rule: Choose between two options for Holiday Overtime: Do not count hours worked on holidays or count hours worked for the Overtime period.
Use weighted overtime calculation method: This is a yes or no setting. Weighted overtime is also known as “blended” overtime. It is often used when employees perform multiple jobs and get paid different rates. Weighted average over time (also called WAOT) uses a formula to get the average of a worker’s different pay rates to be paid for overtime without the employer having to calculate and add up the overtime pay for each rate separately. Weighted or blended overtime can also be used when employees have overtime hours and get tips or commissions as part of their pay.
Overtime Example:
An employee works 20 hours at 15$/h and 30 hours at 18$/h weekly.
- This employee worked (20h + 30h) = 50 hours, so they have ten overtime hours.
- The weighted average rate for the week is (20h * 15$/h + 30h * 18$/h) / 50h = 16.8$/h.
- The weighted average weekly overtime rate is (16.8$/h * 1.5) = 25.2$/h.
- The straight earnings for the week are (40h * 16.8$/h) = 672$.
- The overtime earnings for the week are (10h * 25.2$/h) = 252$.
- The total weekly earnings are then (672$ + 252$) = 924$.
Time Slices with multiple pay codes: Select the pay code that generates the highest pay rate or stack premium for all applicable payroll codes.
Example: An employee is working 50 hours at 15$/h during a holiday.
- This employee worked 50 hours, so they have 10 hours of overtime.
- The overtime stacked rate is (15$/h * 1.5) 15$/h = 7.5$/h.
- The holiday stacked rate is (15$/h * 2) 15$/h = 15$/h.
- The total stacked rate is (7.5$/h + 15$/h) = 22.5$/h.
- The total earnings with the highest pay rate option are (50h * 15$/h + 10h * 15$/h) = 900$.
- The total earnings with the stacked premiums is (50h * 15$/h + 10h * 22.5$/h) = 975$.
The Status column shows whether a pay schedule has been archived or active. The default view filters out the archived payroll schedules. If you select ALL in the filter, you will see active and archived payroll Schedules.
Employee Payroll Schedules
You can also manage payroll schedules for individual employees. Follow this path to access the payroll schedule.
Employees > Select Employee > HR Profile > Payroll and Scheduling Settings > Payroll Rate Section.
You can modify the Pay Schedule field by selecting one of the options between the default and any other Payroll Schedules you may have already created.
Note: A pay schedule will only appear in this menu if you have already created it.