Pay Examples

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FlexiTime supports a variety of different employee pay arrangements. For example, you may have employees that:

  1. Enter timesheets for their work, and are paid based on these timesheets.

  2. Enter timesheets for their work but are paid a regular salary regardless of the hours worked. FlexiTime will use the timesheet information to calculate Leave and generate client invoices.

  3. Are paid a regular salary and do not enter timesheets. In this case, the payroll administrator must manually enter any Leave hours when creating a pay.

  4. Do not enter timesheets and are paid an hourly rate. In this case the hours worked are entered manually by the payroll administrator.

 

1. Pay based on Employee’s Timesheets

 

Employee Settings

By default the Derive Pay from Timesheet field on the Employee Settings should be ticked. 

Employee Timesheets

The employee enters time under Timesheets for hours worked. The pay code is determined by the Work and Category selected when entering the time.

If a default pay code has not been set for the Work Category then the default pay code Ordinary Time is used.

 

Timesheet Approval

If the company settings require timesheet approval, a Timesheet Approver must check and approve the timesheet before it is included in the employee’s pay.

Create Pay

The Payroll Administrator creates a new pay and includes the employee. FlexiTime uses the timesheets to calculate the hours worked or leave taken and Gross Earnings for the specified pay period.

 

2. Salary plus Timesheets

 

Employee Settings

Derive Pay from Timesheet should be ticked by default

Add the Salary (SAL) pay code to the employee’s default pay codes. Leave the default hours as zero, FlexiTime will calculate the number of hours each pay based on the normal hours per day of the employee and the pay period. 

The hourly rate will be calculated based on the annual salary and the hours per day and days per week.

Employee Timesheets

The employee enters time under Timesheets for hours worked, including any Leave (sick, annual, special, bereavement etc).

Timesheet Approval

If the company settings require timesheet approval, a Timesheet Approver must check and approve the timesheet before it is included in the employee’s pay.

Create Pay

The Payroll Administrator creates a new pay and includes the employee. FlexiTime uses the employee’s Salary pay code to calculate Gross Earnings and the timesheet to calculate any Leave.

Because the Salary pay code has been included, the quantity of hours for the SAL pay code will be reduced by the total hours for any leave types included in the period. This means the employee will receive the same pay amount each pay.

If work categories are included in the time sheet where the category has the Special Payment for Salaried Employees checkbox ticked an additional payment will be included in the pay for this work. This can used in situations where a salaried employee does additional work outside their expected standard work hours such as a special stock take during a weekend.

 

3. Salary, no timesheets

 

Employee Settings

Add the Salary (SAL) pay code to the employee. The number of hours will be calculated by FlexiTime based on the normal hours per day, days per week and the pay period. 

Create Pay

The Payroll Administrator creates a new pay and includes the employee. FlexiTime uses the employee’s Salary pay code to calculate Gross Earnings.

If the employee has taken any Leave during the pay period, the administrator should manually add the appropriate leave pay code and leave hours to the pay. The number of hours for the Salary pay code must be manually reduced by the leave hours to ensure the employee is paid the same amount each period.

After adding or modifying a pay line in the pay the Recalculate Pay button must be clicked to recalculate pay, tax and leave entitlements.

 

4. Hourly Rate, no timesheets

 

Employee Settings

The regular number of hours the employee is paid each pay period can be entered as a default  pay code for the employee. Go to Employee Setup > Default Pay and add the Ordinary Time pay code. Set the default number of hours to the normal hours paid each pay period.

Create Pay

The Payroll Administrator creates a new pay and includes the employee. If a default pay code has been added for Ordinary Time for the employee it will show in the pay with the default hours. Click edit on the pay code line to adjust the number of hours worked as needed.

If the employee has taken any Leave during the pay period, the administrator should manually add the appropriate leave pay code and leave hours to the pay. The Ordinary Time pay code may need to be reduced to ensure the correct total hours are paid.

FlexiTime will calculate the employee’s tax and other deductions based on the employee’s tax code and pay codes.

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