US Payroll - Recalculate Salary Charge Rates

Overview

This document outlines the recalculate salary charge rate functionality within Payroll in Enterprise. To explain this, consider the following example.

An employee works 60 hours for a given week and records those hours against the job in their timesheet. They are salaried and, due to the nature of their contract, are only to be paid for 40 worked hours for the week. As such, their hourly rate based on their annual salary is multiplied by 60 (the number of hours worked) and then divided by 40 (the number of hours being charged to the job) in order to give the actual hourly rate of pay the employee received for that week.

The data used in this scenario is given below.

Prerequisites

Before recalculating charge rates for salaried employees, the following considerations should be made.

US Payroll

In the US Payroll - Payroll Control screen, the ‘Allow Calculate Salary Charge Rate’ and ‘Calculate Salary Charge Rate Before Timesheet Posting’ boxes should be checked.

Screenshot of Rules tab

Pgm: PYCOMPRO – Payroll Control; standard Treeview path: US Payroll > Setup > Company > Control

Job Costing

In the Enter Job screen, the ‘Use Calculated Salary Charge Rates’ box should be checked.

Pgm: JCJOBFM – Job Setup; standard Treeview path: Job Costing > Job > Enter Job

Process

Log into the E-Time module and enter the time worked for the employee. In the example below, the employee has entered 60 hours. Once all the relevant details have been entered, press the [Submit For Approval] button.

E-Time; standard Treeview path: E-Time > E-Timesheet > Timesheet Entry

Once the timesheet has been completed, submitted, and approved by an administrator, its details can be viewed in the US Payroll module before it is posted.

As shown by the NH Pay Rate column below, the employee pay is calculated as $48.076 per hour. The job is costed at this same hourly rate, as shown by the N.Hrs Charge Rate field in the Employee tab. This value, as shown in the calculations at the start of this guide, is found by dividing the annual salary amount by the contracted number of work hours per year.

Pgm: PYTIMSTM – Timesheet Entry; standard Treeview path: US Payroll > Timesheet > Timesheet Entry – Timesheet Details tab

Pgm: PYTIMSTM – Timesheet Entry; standard Treeview path: US Payroll > Timesheet > Timesheet Entry – Employee tab

In order to change the value of this field to the actual hourly rate, select the Calculate Pro-Rated Salary Charge Rate/Pay Rates option from the Option field of the US Payroll - Salary Payroll Redistribution screen. This option is selected because both the amount paid to the employee and the amount charged to the job need to be changed. Press the [Process] button to perform the calculation.

Pgm: PYCALCHG – Calculate Salary Charge Rate; standard Treeview path: US Payroll > Processing > Salary Payroll Redistribution > Recalculate Salary Charge Rates

One can now look at the updated timesheet to see that the NH Pay Rate column and N.Hrs Charge Rate field have been updated with the recalculated hourly rate.

Pgm: PYTIMSTM – Timesheet Entry; standard Treeview path: US Payroll > Timesheet > Timesheet Entry – Timesheet Details tab

Pgm: PYTIMSTM – Timesheet Entry; standard Treeview path: US Payroll > Timesheet > Timesheet Entry – Employee tab

Edit Listings and Reports

To further check that the hourly pay rate and hourly charge rate has been changed correctly for the salaried employee, a timesheet edit listing can be printed.

Timesheet Edit List By Employee; standard Treeview path: US Payroll >Timesheet > Reports > Timesheet Edit Listing Report – [Print] button

At this point, post the timesheet and print the various posting reports to see the impact on the US Payroll, Job Costing, and General Ledger modules.

Check the ‘Print Reports Immediately’ box on the Timesheet Posting screen to automate the printing of timesheet reports whenever a timesheet is posted.

Pgm: PYTIMPST – Payroll Timesheet Posting; standard Treeview path: US Payroll > Timesheet > Timesheet Posting

Pressing the [Post] button then automatically prints the following reports.

As a final check, run the Job Cost Transaction report.

Pgm: JC2000 – Job Cost Transaction Report; standard Treeview path: Job Costing > Reports > Job Cost Transaction Report

Please note that, as per the scenario, the job has recorded 60 hours but has only been charged for 40 hours.