Pay Stub Ammendment

General support regarding TimeTrex, such as
configuring policies/taxes or processing payroll.
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lsanchez_gutierrez
Posts: 36
Joined: Fri Jan 05, 2007 5:26 pm
Location: San Jose, Costa Rica
Contact:

Pay Stub Ammendment

Post by lsanchez_gutierrez »

I have seen Timetrex calculates an employees salary based on the work hours and hourly rate. If for example, an employee has a fixed montly salary, for example $1,600, he should earn $10/hr in a 40hr week and using a Semi-Monthly Pay Period (1-15,16-LastDayofMonth).

There are months in which the first 15 day period has 11 work days (Mon-Fri) and other cases, like February where the second 15 days period is 13 days or months with 30 days, making it a 16 day period.

In the case where the 15 day period is less than 15 days I can easily add a Pay Stub Ammendment and increase the employees salary. What do you recommend for the opposite example, when you have to reduce their salary, it is not a deduction, beacuse that amount will be added to the total deductions (employee/employer). It is instead a reduction of their salary.
shaunw
Posts: 7839
Joined: Tue Sep 19, 2006 2:22 pm

Post by shaunw »

It sounds like you aren't necessarily looking for salary then, what you want is closer to an hourly wage.

The whole point of salary is it doesn't really matter how many days there are in a pay period, but its averaged over the entire year so the employee gets consistent paychecks. If you want to pay the employee 19,200/year (1,600/month), enter that amount and that is what they will get paid. Having 13 days or 16 days in a pay period really makes no difference.

Instead of increasing/decreasing their wage every 2nd month or so due to the whole 13/16 day payperiods, why not just set them up as an hourly wage and let TimeTrex handle that for you automatically? It would save you a lot of time and hassle in the long run. Not to mention reducing the huge possibility for errors to occur.

Regardless of which, you can enter negative pay stub amendments, ie: a negative "regular time" earnings pay stub amendment to reduce their wage. But you have to be careful with this especially in overtime/premium time scenarios, and year end reports, but that may not affect you.

Oh yeah, depending on which country you are in this practice could get you into legal trouble.
lsanchez_gutierrez
Posts: 36
Joined: Fri Jan 05, 2007 5:26 pm
Location: San Jose, Costa Rica
Contact:

Post by lsanchez_gutierrez »

Thanks Shaun for your explanation.

I am really looking for a Salary, a fixed monthly income payed every 15 days, the 15th of every month and the last day of every month. I have seen in the Wage Section for employees that you can enter a Salary (Annual), and it calculates it for every hour depending on the average weekly time. Does this option give me a fixed, $1,600 salary for the employee every month? It tricks me due to the fact it gives you an hourly rate calculation.
shaunw
Posts: 7839
Joined: Tue Sep 19, 2006 2:22 pm

Post by shaunw »

Yes, the salary option will pay the employee a fixed amount every pay period assuming no other overtime/premiums and such are added.

The reason the hourly calculation exists is so TimeTrex can calculate an hourly wage for things like overtime, absence time, or job costing if/when those are actually used.
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