Employee Exempt Rules Processing

Overview

The Employee Exempt Process screen allows for employees to charge additional hours in a pay run, above the maximum number of hours usually allowed. By marking certain hour types as eligible for exemption, pay runs can be processed and exempt hours can be charged to job costing.

This utility processes unposted timesheets as per setup and automatically adjusts time entered over maximum hours in a pay run and creates a new line in the timesheet table for adjusted hours based on setup selections.

Setup

Employees can be marked as eligible for exemption on their employee profile. The Type field should be set to "Hourly" and the FLSA Type field should be set to "Exempt" as shown in the screenshot below.

Pgm: PYEMPLOY – Employee Profile; standard Treeview path: US Payroll > Setup > Employees > Employee Profile – Personal tab

In the Payroll tab of the System Options screen, the Apply Exempt Employee Hour Restriction field should be set to "None".

Pgm: SYSOPT – System Options; standard Treeview path: System Data > Setup > System Options

Finally, any hour types that should be charged as JCHR when processing pay runs should have the 'Exempt Rule' box checked on the Hour Types screen, as shown below.

Pgm: PYHRTYPE – Hour Type Maintenance; standard Treeview path: US Payroll > Setup > Company > Hour Types

Implementation

Consider the above example. This is fr a semi-monthly pay run which spans 16 days. The value in the NH Total field is calculated as the product of the number of working days in the pay run (11) and the number of daily working hours for the employee (8), as taken from values entered in the Payroll Control screen. Therefore, 88 hours are the maximum number of hours allowed for this pay run.

However, the employee has entered 96 hours on their timesheet, consisting of the 88 normal hours and 8 vacation hours (training hours are not included in this processing). Typically this would result in an error, but this is where the Exempt Employee utility can be used.

Here, the VAC hour type has been marked as Exempt so they are charged as JCHR hours and are subtracted from the regular working hours.

As shown above, the processing has calculated the employee as having worked 80 normal hours and the pay run can now be processed successfully.