MANAGE PAY TYPES

Use this screen to enable or define certain pay type characteristics. Pay types control the way in which labor cost is calculated on the Manage Timesheets screen. Use pay types on the Manage Timesheets screen to specify premium or straight-time rates of pay. Depending on the pay type, you can add additional amounts to the calculated labor cost. In addition, the Pay Types table controls whether a pay type is eligible for overtime premium recasting and/or weighted average rate calculations.

You must set up pay types before they can be used in timesheet entry. The Pay Types table must also contain the default pay type you want to use on the Configure Labor Settings screen before you can complete Configure Labor Settings. You can add to this table at any time, and you can establish an unlimited number of pay types.

Location

Identification

Pay Type Code

Enter a pay type code. This code is used on timesheet lines and in various places throughout Costpoint.

Description

Enter a description of the pay type code.

Factor

This field displays the rate, which is defined using up to four digits to the right of the decimal in this field, and which is multiplied by the previously calculated labor cost (hours worked times employee's normal rate per hour) on the timesheet line. An example is "1.5" for a rate that pays overtime at one and a half times the normal hourly rate. Use this rate for any type of premium pay, such as shift work. If you do not want to change the previously calculated labor cost on a timesheet line, enter "1.0" for the rate. If you select the Benefit Reimbursement check box, the value in this field must be zero.

Details

Additional Calculations Based on an Amount

Use the options and the Amount field in this group box to specify how the labor cost on the timesheet line is calculated. The calculation of the labor cost on the timesheet line is affected by two elements of the Pay Type Code: Factor and Amount. The Factor refers to a rate by which the labor cost is multiplied, and the Amount refers to a flat amount or amount per hour that is added to the previously calculated labor cost.

Add pay type amount to timesheet line

Select this option to add the Amount below to the timesheet labor cost, as is. This may be appropriate for a uniform allowance or other amount that is a flat per pay period amount. If you select the Benefit Reimbursement check box, you must also select this option.

Multiply hours times pay type amount

Select this option to multiply the Amount below by the number of hours on the timesheet line, and to add the result to the timesheet line labor cost. No factor enters into this calculation; therefore, no matter what the rate is for this pay type, even if this pay type has a factor other than "1.0," it does not affect the Amount calculation.

Multiply hours times pay type amount times factor

Select this option to multiply the Amount below by the number of hours on the timesheet line, to multiply by the Factor of this pay type, and to add the result to the timesheet line labor cost. This is similar to the above usage method except that the factor enters into the equation.

Amount

The amount you enter in this field is either a flat amount or is multiplied by the number of hours on the timesheet, depending on the options you selected in this group box. Costpoint adds this flat or calculated amount to the previously calculated labor cost on the timesheet line containing this pay type. Because this is a required field, a default value of "0.00" is provided.

Pay Type Categories

Use this group box to enable the use of a pay type or identify a characteristic about the pay type.

Do not select check boxes for features that do not apply to this pay type.

Overtime

Select this check box if this pay type is an overtime or premium-type of pay type.

Cost-only

Select this check box if this pay type is a cost-only type. A cost-only pay type determines the labor cost based upon the hours worked, but then zeroes out the hours on the timesheet line. Use this option primarily for entering overtime premium to an overhead account. All hours (including overtime hours) are charged directly to the contract at the straight rate. Hours entered for the overhead account are only for calculating the labor cost.

Benefit reimbursement

Select this check box if this pay type is used solely for the purpose of making benefit dependent care, medical care, or cash out reimbursements. This pay type is not used on timesheets. If your company is not licensed for Costpoint Benefits, this check box is disabled.

Reimbursement - Exclude from gross earnings

Select this check box if earnings associated with this pay type must not be included in gross earnings. When you compute payroll, the earnings amount associated with this pay type is not included in the gross earnings amount, but rather the total reimbursements amount. When you select this check box, Costpoint displays the following message indicating that you should assign the taxability status to the Pay Type on the Configure Pay Type Taxability screen: "You have opted to exclude this pay type from gross earnings. You may also want to set up Pay Type Taxability for this pay type."

Leave without pay (LWOP)

Select this check box to use this pay type for leave without pay.

Leave without pay (LWOP) - Negative

Select this check box to use this pay type for negative leave without pay.

Severance

Select this check box to use this pay type for severance pay.

You must flag all LWOP pay types before you can run the Create Leave Modifier Codes utility.

Federal-non-taxable sick pay wages

Select this check box if the wages that are associated with this pay type represent federal-non-taxable sick pay wages.

Exclude from ACA Full-Time Equivalent Analysis

Select this check box if hours associated with this pay type should be excluded when determining if a non-full-time employee’s hours worked make the employee eligible for full-time equivalent status under Affordable Care Act rules. The Analyze Full-Time Equivalent Eligibility screen uses this check box to determine if the pay type’s hours from the timesheet should be included when comparing the employee’s hours worked to the average monthly hours threshold.

Employee Eligibility

Exempt

Select this check box if this pay type is eligible for use by exempt (from the Fair Labor Standards Act) employees. The Manage Timesheets program checks this field to determine whether such exempt employees can use this pay type. You can identify exempt employees on the Manage Employee Salary Information screen.

Non-Exempt

Select this check box if this pay type is eligible for use by non-exempt (from the Fair Labor Standards Act) employees. The Manage Timesheets program checks this field to determine whether an employee can use this pay type. You can identify non-exempt employees on the Manage Employee Salary Information screen.

Salaried

Select this check box if salaried employees can use this pay type. The Manage Timesheets program checks this field to determine whether a salaried employee can use this pay type. You can identify salaried employees on the Manage Employee Salary Information screen.

If you want to pay overtime to salaried employees, you must select this check box, even if this is an overtime pay type. If you want to pay overtime to salaried employees and this is an overtime pay type, select both the Salaried and Overtime check boxes.

Overtime Premium Recasting

Eligible for overtime premium recasting

Select this check box to specify whether this pay type is eligible for recasting by the Manage Overtime Premium Recast Charge Codes screen. If you select the Eligible check box, any timesheet lines containing this pay type have the premium portion of overtime recast to a new timesheet line.

To be eligible, the pay type must have a Factor greater than "1.0," an Amount of "0," and a pay type that is neither a Cost Only nor a Benefit Reimbursement.

Recast Pay Type

Enter, or click to select the pay type to use for the new recasted timesheet line generated by the Manage Overtime Premium Recast Charge Codes screen. The pay type identified here is specific to this pay type when encountered on the timesheet line. You can identify a company-wide pay type for the same purpose on the Overtime Settings subtask of the Configure Labor Settings screen. Leave this field blank if you want to use the company-wide pay type for recasting purposes. If you enter a pay type, it must already exist in the Pay Types table and you must have selected the Eligible check box.

Allocate Compensated Overtime

Calculate overtime premium on this Pay Type

Select this check box if the pay type must be calculated for overtime premiums on the Allocate Compensated Overtime Across Timesheet Lines application.

Allocate overtime premium to this Pay Type

Select this check box if the pay type must be allocated for overtime premiums on the Allocate Compensated Overtime Across Timesheet Lines application.

When you first access this application, both the Calculate Overtime Premium on this Pay Type and Allocate Overtime Premium to this Pay Type check boxes are selected. Selecting both check boxes enables the pay type to be included in the overtime premium calculation and to receive an allocation.

Weighted Averages

Use the options in this group box to specify how or whether the Apply Weighted Average Weights to Timesheets application processes this pay type. That application recalculates labor cost for employees working at multiple rates of pay within a pay period.

Include this Pay Type in determining the weighted average

Select this option to include this pay type in the calculation of the weighted average pay rate for employees who have worked at more than one rate of pay for the pay period. The weighted average rate is determined by adding the labor cost for all designated lines and dividing by the sum of the related hours for those lines. This rate then becomes the basis for recalculating pay types so designated (normally overtime).

Recalculate this Pay Type

Select this option to make this pay type eligible for labor cost recalculations by the Apply Weighted Average Weights to Timesheets application. Timesheet lines containing this pay type have the labor cost recalculated (by the Apply Weighted Average Weights to Timesheets application). Normally, this is an overtime pay type and is used for employees working at multiple rates of pay in the same pay period. One requirement of the Fair Labor Standards Act is that a non-exempt hourly employee working at more than one rate of pay within the same workweek must be paid at the weighted average rate earned during the week. This weighted average rate is normally used for the basis of calculating overtime amounts. Or, if agreed to by the employee in advance, the employee can be paid overtime based on the rate paid for the job actually done in the overtime hours.

Not applicable (do not include or recalculate)

Select this option to designate that any timesheet line containing this pay type must be skipped by the Apply Weighted Average Weights to Timesheets application. Select this option for benefit reimbursement pay types.