If you need to create an overtime rate other than the standard Time and a Half and Double time, you can use Rate Factors.
Rate Factors allows you to define rate factors and descriptions that can be used instead of the Time and a Half and Double. Rate Factors can be selected in Rate Details on the employee record and the Rates tab of a Pay Class. They can also be selected in Overtime Hours on Transactions.
Rate Factors can only be used if the Use Rate Factors checkbox on the Rate Factors tab in Payroll, Maintenance, General, General Parameters has been ticked. This is also where you can define the Descriptions for your Overtime Rates.
To create a Rate Factor
Go to Payroll, Maintenance, Rates, Rate Factors.
Click Add to create a new Rate Factor.
Enter the Code. This is an alpha-numeric field and will display in the transaction dropdown. Once defined, it cannot be changed.
Enter a Description. This is used on Pay Advices.
Enter the Rate Factor. This is the factor you want to multiply the rate by to calculate the overtime. For example, if the overtime is paid at 125% of the base rate, enter 1.25.
Once the rate factor is created, you can link it to an Employee's Rate Details, attach it to a Pay Class code, and use it in transactions.
Use Rate Factors in Transactions
Go to Payroll, Transactions, Processing, and choose the Transactions (e.g., Extended Transactions).
Enter the Employee.
Click on Overtime Hours in Pay Summary and then Add.
Select either Time/Half or Double as the Overtime Type. Time/Half will use the Overtime Rate 1 Description from General Parameters in reports, and Double will use the Overtime Rate 2 Description.
Select the Rate Factor you want to pay the Overtime. Where Rate Factors are attached to the employee or pay class, this will default to the first rate factor in their Rate Details. This will be blank for employees who aren't attached to Rate Factors.
Once all components have been entered, click Process.
Note: Penalty Rate factor cannot be edited in a Manual Calculation Addition or Subtract OR Transaction Adjustments if the Lookup Field is left as Code. Right click with your mouse on the Overtime Type and select Lookup Field, and select Description. You should then be able to edit.
Rate Factors in Reports
Below is how Rate Factors will appear in Reports.
Report | Rate Factor Display |
Transaction Report | Uses the Overtime Rate Descriptions from General Parameters |
Payroll Report | Uses Time/Half and Double |
Summary of Hours | Uses the Overtime Rate Descriptions from General Parameters |
Pay Advices | Uses the Rate Factor Descriptions |
Costing Report | Uses Time/Half and Double |
Employee Previous Earnings Report | Uses the Overtime Rate Descriptions from General Parameters |