Question on Shift Calculation

Question:


Dear Gurus

Does PS Timekeeper allow for the assigning of percentages to specific hours in the workday, so that if a non-exempt employee works those hours, they get a differential paid to the for that hour only.

For example, Jane Doe works the even shift (6pm to 2am) one day a week. When putting her hours in the timekeeper, she records normal hours (8am to 5pm) Monday through Thursday, and 6pm to 2am on Friday. Would she be assigned a shift code at the employee level (lets say 5%) that gets applied to all hours no matter what? OR could the system recognize normal pay for Monday - Thursday, and apply the differential to the hours worked Friday night only?

I Appreciate your early response.

Thanks in Advance

Keyrun

Answer:


You need to understand how Shift Differential is paid through PeopleSoft. here's some background on how you can setup shifts and shift differential or shift premium payment.

Methods to Setup Shift Pay:

This diagram lists some methods for setting up and calculating shift pay:



Earnings Code Based on Other Earnings.

This is the preferred method if you need to express shift pay as separate earnings on the paycheck or advice. Create a separate earnings code for shift differential based on another earnings code or a special accumulator of earnings and pay it out as additional pay. You can set it up as a percentage or a flat rate. A flat rate must be hours-based. Do not select Eligible for Shift Differential on the Earnings table.

Pay Group SetID and Shift Table
Create each applicable shift type on the Shift table. Assign each employee to one of these shifts. Select Eligible for Shift Differential for eligible earnings codes.

Earnings Code With Earnings or Rate Adjustment Factor
Add a rate adjustment factor to applicable earnings on the earnings table to add that rate to the employee’s hourly rate. Or add an earnings adjustment factor to the total earnings. This method does not result in a separate earnings line on the paycheck


Compensation Rate Codes
You can define non-base compensation rate codes to indicate the rate that is paid on the paycheck when assigned to an earning. For example, if the employee is paid overtime at time and half and the employee’s hourly rate is $10.00, the paycheck would show the $15.00 rate for overtime.

Use Time and Labor Rules
Customers who license PeopleSoft Enterprise Time and Labor set up rules to define shift differential.

One important thing to note is that: The Eligible for Shift Differential check box has no bearing on PeopleSoft Enterprise Time and Labor.

So for your case, you need to define a Time and Labor rule for calculating a shift premium instead of using payroll shift differential.



You can try using the Premium Zone Templates:

1) Template 100 :

If a time reporter works between x and y o'clock, then pay premium. i.e. When a time reporter works between (1)SPECIFIED_START_TIME and (2)SPECIFIED_END_TIME, create a shift premium only for those hours worked within the specified time, to be charged to TRC (3)SPECIFIED_TRC.

2) Template 090:

If a time reporter clocks in between x and y o'clock, then pay premium. i.e When a time reporter punches IN between (1)SPECIFIED_START_TIME and (2)SPECIFIED_END_TIME, create a shift premium for all hours worked, to be charged to TRC (3)SPECIFIED_TRC.
If the time reporter punches in within the specified time period, this rule creates a TRC for all hours worked, even when the time reporter punches out after the specified time period.


So, in your case, you would put the start time and end time of friday to pay .05 percent shift premium. Your Shift Premium TRC should have .05 as the multiplication factor.

Hope this helps. Please add comments.