Pay Calculations Profile Overview

Modified on Thu, 4 May, 2023 at 5:04 PM

What is a Pay Calculations Profile?

The Pay Calculations profile consists of rules that determine how employees are paid for their time worked. Employees recorded worked time is run through the Pay Calculations profile where rules dictate which hours count towards which Pay Types, or Counters.

Counters

Counters are different pay types used for paying and reporting purposes in the system. Counters are like different buckets that are designed to receive specific time types (ex. overtime hours), quantity types (ex. miles driven), or amount types (ex. cash bonuses). Our discussion is limited to time-based counters for the purposes of this course.

Counters Example

Let us say Alan has a total of 65 hours (about 2 and a half days) on his timesheet this week. Some of it is regular work time, some should count as overtime, and some of it is paid time off. Study how this time distributed to the appropriate counters.

Step 1: Regular Time

Alan's company runs on a typical 40-hour work week, so 40 hours (about 1 and a half days) of Alan's worked time is allocated to the Regular counter.

Step 2: Daily Overtime

Of the 25 hours that remain after Regular hours, 10 of it is Daily Overtime (time greater than 8 hours in a day) and 5 of it is Double Overtime (time greater than 12 hours in a day).

Step 3: Weekly Overtime

Of the 10 hours remaining after Daily Overtime, 2 hours are allocated to Weekly Overtime (Time greater than 40 in a week ignoring Daily Overtime and Double Overtime).

Step 4: Time Off

The remaining 8 hours are the result of Alan taking a vacation day, so these are allocated to a Time Off counter.

Pay Calculations Profile and Counters

The allocation of all these hours to their appropriate counters is the direct output of rules configured in the Pay Calculations profile.

How Does It Work?

Rules are configured in the solution to meet your organization's specific policies around pay. Dozens of unique rules are available to meet a company's various needs, and each rule is configured to apply specific criteria to raw time.

An example of a configured Weekly Overtime rule is shown below. This rule is set to count worked time over 40 hours as weekly overtime. At the same time, the rule is configured to ignore other types of overtime as well as time off.

Configured Weekly Overtime Rule in Pay Calculations Profile

The output of the pay calculation rules can be seen on the timesheet, specifically within many of the report tabs. For example, the image below is the Summary By Day tab on a timesheet. This tab displays raw and calculated time in the first two columns. Time allocated to specific counters (Regular, Sick, and Weekly Overtime) can be seen in the other columns.

Summary By Day timesheet report displaying allocation of hours to different counters.

It is critical that time is calculated correctly so that employees are paid accurately.