How does the payroll platform behave when taking time off? | Payroll Web Platform

This is for permanent staff that do not get paid by timesheets - rather they are paid the same earnings each pay run, regardless of hours worked. Typically, these employees' Pay Run Defaults are set up with standard hours to be paid by default in the pay run, and the employee's timesheet setting should be Do not use timesheets or Use timesheets for exceptions only (e.g. overtime).

When the employee takes time off, this is automatically paid in the pay run, so the only acton you will need to take it to reduce the time off balance by the time off taken. Time off earnings are separated from ordinary earnings in the pay run.

Add two earnings lines when time off is taken - these lines remove the time off hours from the ordinary pay category and pay them against a time off pay category. The net effect of these two earnings lines is $0 so remember to include any time off hours with other hours worked in that pay period.

If there are no other hours worked in the pay period, you'll have to use the Add Earnings option from the Actions button within each employee record in the pay run and add an earnings line for the time off hours being taken.

For this case, the employee should have a timesheet setting of Use timesheets to submit all time worked in their Pay Run Defaults.

When timesheet employees take time off, we will automatically create a corresponding earnings line to pay for the time off. No deduction line is created as it is not expected the employee would submit a timesheet for hours worked if on time off.

The main case that is handled slightly differently is Time off without pay. A time off transfer rule deducts that number of hours from the primary pay category. In this scenario, we do not add a corresponding earnings line.

The main use of the time off transfer rules (apart from Time off Without Pay) is for when you need to allocate the payments for time off taken to a separate account in your ledger. In this case, you would need create a separate pay category for that specific time off category.

1. Follow this link to create a pay category called Time off 2.
2. Click on Business Settings.
3. Click on the Payroll Settings submenu.
4. Click on Time off Categories.
5. Under the Payment Setup subheading, configure the time off category as a Custom payment setup.
6. Select Employee's Primary Pay Category in Deduct hours from.
7. Transfer hours to Time off 2 pay category.

If time off transfer rules are configured, the employee's pay rate must be maintained on the pay category. If the employee is being paid their base rate for time off taken, select the Use pay rate of employee's primary pay category for transferred earnings line checkbox and this will automatically apply the employee's primary pay rate in the pay run.

The employee's time off balances will automatically update with any time off taken or accrued in the pay run, and you can view this by selecting the employee's time off balances option.

You can access this from the following instructions:

1. Click on the Pay Runs submenu.
2. Click on your chosen pay run.
3. Click on the dropdown arrow next to the employee's name. 
4. The Time off Balances button appears under the Notes for this Pay Run subheading.

This context panel will display the total updated balance as of at that pay run, including any time off taken or accrued in the period.