Pay Policies – Definition
Pay Policies
ADD:
– Click on ADD button
– Enter the new Pay Policy name and click on APPLY button to save new Policy
CHANGE:
– Change the pay Policy name
– Click on APPLY button to save the change
Pay Policies – Detailed
Pay Policies Configuration
The Pay Policies screen defines the rules under which the employees’ hours are calculated for Regular, Overtime, and other pay rates. There can be several different policies defined within a company. An employer may choose to have one policy for all employees, or may choose to assign different policies for different employees.
Select the Pay Policy from the dropdown box
Overtime Type:
Check any, or a combination, of the following boxes:
Daily, if employees accrue over time on a daily basis, after they have exceeded a certain number of hours in one day.
Weekly, if employees accrue over time on a weekly basis, after they have exceeded a certain number of hours in one week.
Bi-Weekly, if employees accrue over time on a bi-weekly basis, after they have exceeded a certain number of hours in one bi-weekly period (14 days).
Semi-Monthly, if employees accrue over time on a Semi-monthly basis, after they have exceeded a certain number of hours in a Semi-monthly period (15 days).
Next, enter the number of hours that the employee must exceed in a daily, weekly, bi-weekly or semi-monthly period in order to qualify for overtime pay.
If you checked a combination of the above boxes, overtime will be accrued if any of the conditions checked are true.
For example, say you checked the Daily and Weekly boxes and the “Accrue Daily OT Box,” and entered 8 hours for daily, and 40 hours for weekly overtime. Let’s assume that an employee worked 10 hours on Monday and 8 hours on Tuesday, for a total of 18 hours for the entire week. Under the above rules the employee is entitled to 16 hours regular pay and 2 hours overtime pay.
Consecutive Day Rules
Under this rule, employees may earn overtime if they work straight for 5, 6 or 7 consecutive days and they meet a minimum number of hours.
Saturday, or Sunday Premium
Employees may also earn time and one half, or double time pay, if they work on a Saturday or Sunday, and applicable rules apply.
Pay Lunch Time?
Under this rule employees may be entitled to company paid lunch breaks for a certain number of minutes. Any excess time will be deducted from their total hours.
Pay Break Time?
Under this rule employees may be entitled to company paid breaks for a certain number of minutes. Any excess time will be deducted from their total hours.
Minimum Time
Under this rule, employees may be paid a minimum number of hours if they worked minimum amount of time required under this rule.. For example, employees may be paid a minimum of 4 hours if they work even one hour in a day.
AUTOMATIC LUNCHES and BREAKS
This feature makes it easy for you to define breaks and lunch periods, regardless of whether the employee punches in or out.
Deduct Lunch if not taken
Check this box, and select the minutes, with the up/down buttons, for minimum hours worked. Select the hours by using the up/down buttons.
Deduct Breaks if not taken
Check this box, and select the minutes, with the up/down buttons, for minimum hours worked. Select the hours by using the up/down buttons.
When you are finished with all changes or additions, click APPLY.
