Pay Formula Policies
MAIN MENU > Policy > Pay Formulas
Pay Formula Policies define a specific formula that can be used to convert time into dollars for reporting and payroll purposes. These are then assigned to Pay Codes or other policies to define the amount of pay employees receive for the associated time.
See the Pay Codes section for details on viewing, adding, editing and deleting Pay Formula Policies.
| Pay Formula Policy Tab |
| FIELD |
DESCRIPTION |
| Pay Type |
In this field you can choose the formula to use when converting employees time to dollars.| PAY TYPE | DESCRIPTION |
|---|
| Pay Multiplied By Factor | If you choose Pay Multiplied By Factor, you enter a Rate that is the multiplier for the hourly rate of the employee. | | Flat Hourly Rate (Relative to Wage) | The difference between the employees regular rate and the specified rate will be used. If you set this value to be less than the regular rate, there may be a negative line item amount on their pay stub to account for the difference. If this is set to a value higher than regular rate, the item on the employee's pay stub will show the difference between the two rates. For example, if the employee is paid $10/hour as their regular rate and the flat hourly rate is $15/hour, TimeTrex will calculate $5/hour for all time using this policy. For the Flat Hourly Rate setting, you will need to choose a Wage Group which defines the regular rate. | | Flat Hourly Rate | Similar to the above Flat Hourly Rate (Relative to Wage), however its not relative to the employees wage, so no adjustments to the specified hourly rate are made. This would also normally be used in the case of premium policies where you just want to pay the employee an additional amount per hour. | | Flat Hourly Rate (w/Default) | Will use the rate specified in the pay formula policy unless there is a rate specified in the employees wage record. | | Minimum Hourly Rate (Relative to Wage) | Will use the higher of the two hourly rates, either the one specified in the pay formula policy, or the one specified in the employees wage record for the specified wage group, then it will adjust relative to the employees wage so only the difference in wage is used. | | Minimum Hourly Rate | Will use the higher of the two hourly rates, either the one specified in the pay formula policy, or the one specified in the employees record. | | Pay + Premium | If you choose Pay + Premium, you enter a premium amount that adds to the regular hourly rate of the employee and pays them both amounts. For example, if the regular rate is $10.00/hour and the premium is set to $0.25/hour, all time using this policy will be paid at $10.25/hour. When setting up Premium Policies, in most cases you will likely want to use the above Flat Hourly Rate type specified at $0.25/hour instead of this one to avoid double paying the employee. | | Daily Flat Rate (w/Default) | Will use a flat daily rate regardless of how many hours the employee may work or be absent in the day. For example, if the daily rate is specified as $100 and the employee works 10 hours in the day, they will receive $10/hour. NOTE: If the employee has any wage set in the selected wage group, it takes precedence over the specified daily rate. | | Daily Average Rate | Will use an average daily rate regardless of how many hours the employee may work or be absent in the day. For example, if the employees average daily pay is $120 and the employee works 10 hours in the day, they will receive $12/hour. The formula used is: [ Contributing Wages ] / [ Contributing Time ] = Average Daily Rate. | PAY TYPE | DESCRIPTION |
|---|
| Wage Source Contributing Shift Policy | Specifies contributing shift policies that make up the wage part of the averaging formula. | | Time Source Contributing Shift Policy | Defines the contributing shift policies that make up the time part of the averaging formula. | | Average Rate Over | Days to average time over. |
|
| | Piece Rate (per Good Quantity) | Will use this rate multiplied by the quantity specified when the employee punches in/out. |
|
|
| Wage Source |
When using a Pay Type that depends on a previously defined hourly rate (ie: Pay Multiplied By Factor, Pay + Premium, or either of the "Relative To Wage" types), this specifies what is used as the source/input hourly rate for which the pay formula calculation is performed on.| WAGE SOURCE | DESCRIPTION |
|---|
| Wage Group | The hourly rate defined from the selected Secondary Wage Group. | | Contributing Pay Code | Uses the hourly rate from the contributing pay codes included when calculating a policy. This would normally be used to help calculate the proper overtime rate when the employee may be paid multiple different rates for performing different jobs or tasks, allowing the final overtime amount to fluctuate with each different regular rates rather than using a static overtime rate which using the above Wage Group would result in. | | Average of Contributing Pay Codes | An hourly rate calculated from an average using the below Contributing Shift Policies. The formula used is: [ Contributing Wages ] / [ Contributing Time ] = Average Hourly Rate. | PAY TYPE | DESCRIPTION |
|---|
| Wage Source Contributing Shift Policy | Specifies contributing shift policies that make up the wage part of the averaging formula. | | Time Source Contributing Shift Policy | Defines the contributing shift policies that make up the time part of the averaging formula. |
|
|
|
|
| Rate |
The rate in which hours are deposited or withdrawn from the accrual account. To bank time at double time (instead of paying it out), you would set Accrual Rate to 2.00 and set Rate to 0.00 |
| Accrual Account |
Defines the Accrual Account by which hours will deposit or withdraw from. It is especially important where time banks or compensatory (comp) time are used. Time can be simultaneously paid out and deposited/withdrawn from an accrual account. If you only want to deposit hours to an accrual policy, set the Rate to 0.00, then TimeTrex will not pay out any time. |
| Accrual Balance Threshold |
Specifies a minimum or maximum accrual balance limit. If the accrual rate is positive, the threshold is a maximum, if negative the threshold is a minimum. |
| Accrual Balance Threshold Fallback |
When the accrual balance threshold limit is exceeded, the excess will go to the selected account. This can be used in conjunction with the Accrual Policy, "Move Excess Rollover To" field. |
|