Multiple Employee Pay Rates

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In some cases you may want to pay your employees at different pay rates based on the different jobs or projects they work on. FlexiTime has a number of different ways in which you can pay employees at different rates depending on the situation.

1. Employee Pay Rates - On the employee setup you have the option to enter a Normal Rate, Second Rate and Third Rate for an employee.

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These rates will be used depending on which rate is selected on the pay code. For example, if you look at the pay codes called Second Pay Rate and Third Pay Rate you will see that we have set these to use the Employee's second pay rate and third pay rate.

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If you are using time sheets and wanted specific work recorded in the time sheet to be paid at the second pay rate you would create new work and specify that the default pay code for the work is the second pay rate.

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This allows you to set 3 different pay rates for an employee based on the work they perform.

 

2. Default Pay Rates - The employee default pay codes can be used to specify the pay rate an employee receives for a specific pay code.

Normally the default pay codes are used to specify pay codes to regularly appear in an employee's pay such as Tax and Direct Credit. Other default pay codes are automatically added by FlexiTime when you select employee options such as KiwiSaver or a student loan tax code. The rates of these pay codes are automatically determined by FlexiTime. Or if you have manually entered a pay code for something like a regular deduction you can set the rate to use for the pay code.

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Other pay codes are automatically added to an employee pay because time has been entered in the time sheet for work in the pay period, and the work has been defined with a default pay code. The pay code for the work then determines whether it is the normal, second or third employee pay rate that will be used to pay the employee, as described above. However, if the pay code has been set to use None as the employee pay rate then the rate from the employee default pay codes for this pay code will be used, or if that hasn't been specified then the default rate from the pay code itself will be used.

 

3. Job Based Pay - The last option for determining an employee pay rate on the pay code is to use the Job Pay Rate. When the employee is entering their time in the time sheet if the work they select has a default pay code with this pay option selected then the pay rate for the employee will be based on the pay rate specified on the Job they then choose in the time entry.

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To set options to force an employee to select a job see this support article.

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