There are times when an employee will work two different jobs or positions within your organisation and will get paid a different rate for each position. In these scenarios, you may also need to pay their leave at two different rates, and they may be entitled to allowances specific to one or both positions.
There are two options for how to setup these employees. You should consider both options outlined below and select the one that most suits your organisation.
Two Employee Records
Creating two records in MicrOpay will mean that:
The employee is paid the correct rate when they work and when they are on leave without the need to manually override rates or create different leave reasons.
The employee will have two pay advices, they will appear twice on all reports and have two Income Statements in MyGov.
If there are allowances that relate to one of the jobs, these can be assigned to the specific record, and they can be calculated based hours worked for that record.
Contract Hours and Work Patterns can be setup relevant to the position. Or leave can be accrued based on hours worked.
Considerations
If you use ESS, ESP or a third-party system, the employee will have two records in these systems as well. They may need to enter leave applications twice, once for each role. For example, if the leave period covers hours worked for both roles, they will need a leave application for each role.
You may need to use a Tax Adjustment to correctly tax the employee over the two records. This can be attached to the employee record with a default amount to withhold each period.
The Superannuation Contribution Cap will need to be monitored so that they don't exceed it between the two records.
If the employee has any bank splits, additions or deductions, these will need to be considered and managed over the 2 records, like Child Support or Union.
One Employee Record
Creating one record in MicrOpay will mean:
Tax will be calculated correctly based on what the employee is paid in the current period.
The employee will receive one pay advice, appear on reports once (the Costing Report will depend on the Cost Accounts used), and receive one Income Statement in MyGov.
The Superannuation Contribution Cap will be applied to the whole of the employee's earnings.
You can include the different rates in the Employee's Rate Details and use the different rates for each job, refer to the steps below for more information. You would then choose the different Rate Type when you enter transactions.
An alternative to using different rates would be to pay the second job through an Addition Before Tax instead of Normal Hours. Doing this will mean that the hours will be excluded from some reports as they appear under Additions Before Tax.
Considerations
The employee can't be set up as Autopay, as you will need to key two entries for Normal hours, one at each rate or pay class.
If you import transactions, the import file will need to contain at least two lines for the employee one for each rate or pay class with the applicable hours.
When paying leave you will potentially need to key two entries for leave and either:
Create two leave reasons for each leave type (e.g. two Annual Leave Reasons, two Sick Leave Reasons, etc), one for each role and attach the leave reason to the applicable rate. When keying leave you (or the employee) will need to select the Leave Reason that relates to the job.
Manually change the rate for the Leave entry so that it is paid at the rate specific to the role. This can be done in Leave Processing or in the Transaction screen. You may also need to split the leave between the two rates.
Any allowances that are specific to one role but are paid as an additional percentage or rate per hour will be paid on all hours entered, not just the ones specific to the role.
Note: If you create two Leave Reasons for each leave type, in ESS these leave reasons will be available to all employees when they apply for leave. This may cause other employees to select the wrong leave reasons in their application.
To set up two different rates on the Employee:
Go to Payroll, Maintenance, Employees, Employees.
Edit the employee.
Select Rate Details.
Add the different pay rate in Other Rate or Award Rate.
Click OK.
When processing a transaction, you select the Rate Type from the drop down (either Normal, Other or Award). The rate type will be available in any field that has the normal rate field associated. You can also select the Rate Type when setting up Additions and Deductions as a Percentage or Rate Type.