Paying Employees based on Piece Rate Pay

Transcription

1 Paying Employees based on Piece Rate Pay INTRODUCTION Piece rate pay consists of paying employees based on the task performed rather than hourly. The base amount paid is determined by which task, or tasks, is completed. Employees can also earn commissions based on enrollment, renewal, or anniversary of agreements and sales and leads. In addition, some employees may be entitled to regular hourly pay. All earnings will be entered as Miscellaneous Wages in the PAYROLL MANAGER. SETUP The setup required to enter and track piece rate earnings consists of: Pay Base Amount In Pricebook Setup Agreement Templates Employee Setup For Piece Rate Earnings Pay Items To Enter Commissions And Overtime, And Track Hourly Earnings Timecard Status Codes To Track Hourly Earnings Pay Base You will enter a pay base for each task when you set up the Pricebook. To enter a pay base on a task: 1. Select Purchasing, then Pricebook from the Main Menu to open the PRICEBOOK (or select the Pricebook icon on the toolbar.) 2. Select the Task section. 3. Click the plus sign by the Category that contains the item to display the category s groups. 4. Select the Group that contains the item to display the items in the grid on right. 5. Select the Item you wish to edit. You can highlight the item and press Enter or right click and select Edit task item. Note: If you know the item number you can enter it in the ITEM NO field at the top of the PRICEBOOK and select Apply. 6. Select the Standard Price tab. Piece Rate Pay 1

2 7. Enter the amount that an employee earns for completing the task in the Piecerate Pay Base field. 8. Select Save to save the changes. Note: Companies who use the Tiered Pricing option can assign a pay base to each Tier rather than for each item. Agreement Templates You should have agreement templates for each agreement type your company sells. When creating the template you will enter the commission amounts you reward your employees upon initial enrollment and for renewal or anniversary of the agreement. To create an agreement template, simply add an agreement of the type you wish to create. Before you close the agreement form select the Save as Template button located at the bottom of the form. When adding the agreement, right-click and select Agreement Status. 2 Piece Rate Pay

3 Enter the commission rewarded for enrolling customers in the New field. If your agreements are fixed term agreements that expire and must be renewed, enter the commission rewarded for renewing customers in the Renew field. If your agreements are perpetual term agreements that do not expire, but you reward commission to the sales rep for each year the agreements is in effect, enter the commission rewarded in the Anniversary field. If you have existing agreements that do not contain commission information you may add it (even if the agreement has been activated and transactions have been processed.) To edit agreement commissions: 1. Open the agreement that you wish to edit. 2. Right-click and select Agreement Status. 3. Right-click in the Agreement Status form and select Edit Commissions. 4. After making the necessary corrections, select the Close button to save the changes and close the form. 5. If you want the changes to apply to the agreement template, select Save As Template before closing the agreement. The system will ask you to confirm that you wish to override the existing template. Employee Setup Employees to whom you pay piece rate earnings must be set up as piece rate employees. All earnings will be entered as Miscellaneous Wages. To set up an employee as a piece rate employee: 1. Select Piece rate as the employee s Pay Type on tab 5 WAGE INFORMATION in the Employee s setup screen. Piece Rate Pay 3

4 2. If the employee may also be paid hourly, enter the correct AVG HRS/PERIOD and AVG CHECK values to calculate the HOURLY RATE you will pay the employee. (i.e. $950.00/40 = $23.75) 3. Once the employee is set up as a piece rate employee the system will display a sixth tab, PIECE RATE. 4. Select that tab to complete the employee s piece rate setup. 5. Enter the percentage of sale you most often pay the employee for sales and select the types of sales (parts, labor, and/or miscellaneous) on which the employee will earn that percentage. 6. Select Include a Base Pay. 7. Select Save, then Close. 4 Piece Rate Pay

5 Pay Items Pay items are used to: Define the pay rate & labor expense type on timecard entries Define the labor expense type on miscellaneous wage entries Group employee wages by type when preparing the payroll Specify GL accounts when posting labor expenses In order to process piece rate payroll properly you must have Pay Items for Commissions, Hourly earnings, and Piece rate earnings. You may have more than one pay item for each pay type. For instance, you may have a job-related pay item for Sales Commissions and a non job-related pay item for Agreement Commissions. You will include a pay item to use as the default for timecard entries created through call progress. If some job-related timecard entries should be paid hourly rather than as piece rate, you will add a different pay item to use for those entries. You will edit the specific Job/Call Types that should be paid as hourly earnings to include the different pay items. You can edit the Pay Item reference table through the Reference Library or Payroll Setup. To access Pay Items from the Reference Library: 1. Select Setup, then Reference Library from the Main Menu. 2. Select Payroll from the list of Volumes Piece Rate Pay 5

6 3. Select Pay Items and click on the Open button. 4. The Pay Item list will open. Press Ctrl+Enter, or right-click and select Modify mode to edit the list. To access Pay Items from Payroll Setup: 1. Select Setup, then Payroll from the Main Menu. 2. Select tab 2, G/L. 3. Select Edit, then the Pay Items button. 4. The Pay Item list will open. Press Ctrl+Enter, or right-click and select Modify mode to edit the list. Be sure to indicate which Pay Items are job related. Job related entries will require you to enter or select a job number. Be sure to indicate which Pay Items are RegOT (Regular earnings). Regular earnings are earnings the employee normally makes and should apply toward overtime calculations. Note: For specific information regarding Pay Item fields, refer to the Setup section of the Payroll Documentation in the User s Guide section of SuccessWare s web site. If you pay your employees hourly earnings, rather than piece rate, for some jobs you must edit the Job/Call Type reference table to add the correct Pay Items for those jobs. To edit Job/Call Types: 1. Select Setup, then Reference Library from the Main Menu. 2. Select Customer Service from the list of Volumes. 3. Select Job/Call Types and click on the Open button. 6 Piece Rate Pay

7 4. The Job/Call Type list will open. Press Ctrl+Enter, or right-click and select Modify mode to edit the list. 5. Move to each item you wish to edit and press Enter. Move to the Pay Item column and select the appropriate Pay Item. Press Enter again to save the line. Only change the items that should refer to a different Pay Item. Job/Call Types that do not contain a Pay Item will refer to the Standard Labor Pay Item in Payroll Setup. Timecard Status Codes You will use the Timecard Report to track earnings that should be paid as regular hourly earnings. In order to run the report for only those items, you will use unique Timecard Status Codes. To enter timecard status codes: 1. Select Setup, then Reference Library from the Main Menu. 2. Select Customer Service from the list of Volumes. 3. Select Timecard Status and click on the Open button. 4. The Timecard Status codes list will open. Press Ctrl+Enter, or right-click and select Modify mode to edit the list. Piece Rate Pay 7

8 5. Move to each item you wish to edit and press Enter. Press Enter again to save the line. 6. Press Ins to add new items. 7. When all changes are complete, press Esc to close Modify mode, then Esc again to close the form. 8 Piece Rate Pay

9 PROCESSING To process payroll using piece rate wages you must complete data entry using certain procedures. You will print reports to obtain the information that you will enter as Miscellaneous Earnings in Payroll. Entering Data You will enter the data necessary to track piece rate earnings based on the type of earning. Piece Rate earnings are recorded as Tasks are posted on customer invoices Agreement Commissions are recorded as agreements are activated Other Commissions are recorded as jobs are completed and invoiced Non job-related hourly earnings are recorded through the Timecard Manager Pay Base (Piece Rate) Earnings The system automatically records the pay base that you will pay the employee for each task as you add the tasks to the customer invoice. The system will track pay bases according to the tasks you select when invoicing. You can edit the pay base for the current invoice if necessary. To edit, or enter, the base pay, press Ctrl+B or right-click and select Employee pay base after you have saved the line item that contains the task. If the task includes a pay base, the system will display the default base. Enter the amount you wish to use for this invoice and press Enter to accept it. If the task does not include a pay base, the system will display a blank EMPLOYEE PAY BASE form where you will enter the desired amount. Piece Rate Pay 9

10 Agreement Commissions Agreement commissions are recorded as you activate new agreements. If you have saved the commissions information for each agreement type as a template, the system will automatically record the amounts. You can enter or edit the commission amount for each agreement if necessary. To edit commission information when adding an agreement: Right-click and select Agreement Status. Enter the correct commission earnings and Salesperson. Select Close when complete. The amounts will be recorded when you activate the agreement. To edit commission information for existing, active, agreements: 1. Open the agreement you wish to edit. 2. Right-click and select Agreement Status. 3. Right-click in the Agreement Status form and select Edit Commissions. 4. After making the necessary corrections, select the Close button to save the changes and close the form. Sales/Lead Commissions Job-related sales commissions can be entered by the dispatcher as he or she completes the Job Summary information or by the employee who processes customer invoices. Commissions can also be entered later, in the MISCELLANEOUS WAGE MANAGER. To enter Job-related sales commissions from the JOB SUMMARY form select the Commissions button located at the bottom of the form. To enter Job-related sales commissions from the A/R Invoice select the button located at the top of the invoice. Select the tab to move to Miscellaneous Itemization and click on the Commissions icon. 10 Piece Rate Pay

11 The COMMISSIONS FOR JOB form will open. Press Ins to add a commission line and complete data entry. When all commissions have been entered for the job, select Close. Hourly Earnings To track regular non job-related hourly pay you will create timecard entries. Job-related hours are automatically added to the timecard as you complete call progress. In order to track job-related hours in addition to piece rate earnings you must assign unique Pay Items to the job/call types for which you pay hourly. To create timecard entries: 1. Select Payroll>Timecard Manager from the Main Menu, or select the Timecard Manager icon. 2. Use the down arrow to select the employee. 3. Click the calendar icon, or press Ctrl+C to open the calendar and select the date of the entry. 4. Select the Modify button to indicate you wish to modify the timecard. 5. Press Ins, or right-click and select Add New Entry. Piece Rate Pay 11

12 6. Use the down arrow to select the appropriate (Timecard) Status. Enter the correct In and Out times and verify that the department is correct. 7. Select Accept to save the entry. Then select Close to close the timecard. Job related hourly entries for which you will pay hourly rather than piece rate will be entered manually in the MISCELLANEOUS WAGE MANAGER when processing payroll. You will run the Timecard Report to acquire the information. Reporting Each pay period you will run a series of reports to gather the information necessary to process payroll. This information will then be manually entered in the MISCELLANEOUS WAGE MANAGER. Pay Base Report Run the Pay Base Report to assemble the piece rate earnings for each employee. The Pay Base Report is a print option when running the Sales Invoice Items report. To run the report select Sales Invoice Items from the AR Invoice Reports group in the REPORT GALLERY. You will use different sorting and grouping options on the report based on how you wish to enter the earnings in Miscellaneous Wages. For instance, if you want to enter the earnings as a flat amount for the payroll period per employee, group the report by Tech. Use the selection fields to include only the jobs for whish you pay piece rate wages (i.e. only Service class or only a certain department.) In the following example you would enter $ for piece rate earnings for Jim and $ for Joe. 12 Piece Rate Pay

13 To enter a separate line for each department per employee, group the report by Tech, then by Department. In this example you would create 3 entries for Jim: $ for Department 10 $ for Department 20, and $ for Department 30 Run the report using different filtering and grouping options until you determine which ones work best for your company. Agreement Commissions Use the Agreement Anniversary Report to collect commissions for agreements for the month. The Agreement Anniversary Report will include commissions for New and Renewed agreements as well as the perpetual agreements that have anniversaries in the selected month. To run the report, select Agreement Anniversary from the Agreements group in the REPORT GALLERY. Enter the month for which you wish to run the report. You can specify an Agreement Type or Salesperson if necessary. To run the report for all agreements and all salespeople, simply enter the month and group by Salesperson. Piece Rate Pay 13

14 Sales and Other Commissions You have two options for entering other commissions. Job-related commissions can be entered as part of completing the job; either through JOB SUMMARY or during invoicing. Recording commissions this way enters them directly into the MISCELLANEOUS WAGE MANAGER. Use the Commissions Summary Report to verify the commissions. You can run the report based on the earned date or the release date of the commissions. You would use the earned date to run a report to determine what earnings you wish to release for the payroll period. Use the release date to report the commissions that were paid during the payroll period. If you enter commissions as lump sums in the MISCELLANEOUS WAGE MANAGER you can print the Commissions Summary Report separately for each salesperson to detail the earnings. To run the report, select Commissions Summary from the Management Reports group in the REPORT GALLERY. 14 Piece Rate Pay

15 If your company does not enter commissions as part of job completion you can use the Sales Invoices report to compile each salesperson s sales for a date range. That information can be used to manually enter the commissions in the MISCELLANEOUS WAGE MANAGER. To run the report select Sales Invoices from the AR Invoice Report group in the REPORT GALLERY. You will use different sorting and grouping options on the report based on how you wish to enter the earnings in Miscellaneous Wages. For instance, if you want to enter the earnings as a flat amount for the payroll period per employee, group the report by Salesperson. Use the selection fields to include only the jobs for which you pay commissions (i.e. only Installation class or only a certain department.) If your technicians are set up as Lead Sources and you pay them commissions for leads you can run the same report but group by Job Lead Source rather than Salesperson. Timecard/Hourly Reporting Non Job-Related Hours To report non job-related hours for which you will pay your employees hourly, run the Employee Timecard Report. You can run the report from the REPORT GALLERY or the PAYROLL MANAGER. To run the Employee Timecard Report from the REPORT GALLERY: Select Time Card Report from the Job/Call Reports group in the REPORT GALLERY. To run the Employee Timecard Report from the PAYROLL MANAGER: Select the Reports button at the bottom of the PAYROLL MANAGER. Then select Time Card Report. Piece Rate Pay 15

16 1. Enter the date range of the payroll period. 2. To only include the timecard status codes for which you pay hourly, select the Selected only radio button in the Time card status section of the screen. 3. Right-click and select Unselect all statuses. 4. Use the mouse to select only the status codes you wish to include on the report. 16 Piece Rate Pay

17 You can enter the information daily or for the entire pay period. Job Related Hours If you pay your employees hourly for certain jobs you will have to set up the Job/Call Types for those jobs to use a specific Pay Item. Use the Wage Source Report to get that information. You can run the report from the REPORT GALLERY or the PAYROLL MANAGER. You must create and prepare the payroll period prior to running the report. To run the Wage Source Report from the REPORT GALLERY: Select Wage Source Report from the Payroll group in the REPORT GALLERY. To run the Wage Source Report from the PAYROLL MANAGER: Select the Reports button at the bottom of the PAYROLL MANAGER. Then select Wage Source Report. Piece Rate Pay 17

18 If you wish to enter hours by department, select Include department on wage listings. If you wish to enter the hours as job related entries (will require a job number for each entry) select the Detail Option Job Location Detail. If you wish to see the hours in decimal format, rather than HH:MM format, select Hours in decimal format. In the following example you will notice that you will see all Pay Items. Also notice that the earnings are $0.00 for most Pay Items. That is because the employee is set up to be paid as a piece rate employee and the earnings have not been entered in MISCELLANEOUS WAGE MANAGER. The commission earnings are reported because they were entered when the jobs were completed. If you run this report to find job-related hours, you can also use it for the non job-related hours such as meetings and shop. In the example, refer to the Pay Items Meetings, PTech, and Shop to use for data entry. Meetings and Shop are non job-related and PTech is the Pay Item assigned to the Plumbing Service job/call types for which the employee is paid hourly rather than piece rate. 18 Piece Rate Pay

19 After you have run the Pay Base, Agreement Anniversary, Sales Invoices, Timecard and Wage Source reports to gather the information you will open the MISCELLANEOUS WAGE MANAGER to enter the data. Entering Payroll Based on the various reports, Jim s earnings this payroll period consist of: Piece rate earnings (base pay) of: Agreement commissions of: Sales commissions of: He will also be paid for 6 hours (1 hour for a meeting, 2 hours of shop time, and 3 hours for plumbing service calls.) These earnings will all be entered in the MISCELLANEOUS WAGE MANAGER. You can access the MISCELLANEOUS WAGE MANAGER from the EMPLOYEE MANAGER or the PAYROLL MANAGER. To open the MISCELLANEOUS WAGE MANAGER from the EMPLOYEE MANAGER: 1. Select Setup from the Main Menu. 2. Select Employee Manager from the Setup Menu. 3. Highlight the employee for whom you wish to enter information and rightclick to select Miscellaneous Wages, or press Ctrl+W. Piece Rate Pay 19

20 To open the MISCELLANEOUS WAGE MANAGER from the PAYROLL MANAGER: 1. Select Payroll from the Main Menu. 2. Select Payroll Manager from the Payroll Menu. 3. Select the Review Period tab in the PAYROLL MANAGER and highlight the employee. 4. Select the Employee tab or right-click and select Employee review. You can also press Enter to review the employee s earnings. 5. The system will ask if you wish to lock the employee. If others are entering call progress or timecard entries answer Yes. Otherwise, you may select No. 6. Select the Wages button at the bottom of the Employee Review. Press Ins to add entries to Miscellaneous Wages. Earnings can be entered in detail or as summarized items. The following example was entered summarizing the earnings by type and department only: The next example was entered in detail, including earned date and job number. 20 Piece Rate Pay

21 If the employee should be paid overtime you must calculate that manually and enter overtime earnings in the MISCELLANEOUS WAGE MANAGER also. To pay overtime: You must manually calculate and enter overtime for employees that are paid piece rate earnings. Even though the employee is not paid based on hours worked (from the timecard), the number of hours to which an overtime premium should be applied is determined by hours worked. After you have entered the employee s earnings, run the Wage Source Report again. The report will include fields for Regular Hours and Premium Base. Those fields are calculated based on the number of hours and amount of earnings for pay items that are marked RegOT (regular wages.) Refer to Regular Hours to determine whether the employee is entitled to overtime and, if so, how many hours. Refer to Premium Base to determine the calculated average (regular earnings/regular hours.) Calculate the employee s overtime earnings using the following formula: Premium Rate = Base Rate + Premium Addition and the premium combination you selected when setting up payroll. You have 5 possible premium combinations: Normal base + calculated average premium addition Normal base + standard hourly rate for premium addition Piece Rate Pay 21

22 Calculated average base + standard hourly rate for premium addition Calculated average base + standard hourly rate for premium addition Standard hourly rate base + standard hourly rate for premium addition As an example, assume that Jim earned 4.5 hours of overtime and the company pays overtime premiums based on the employee s normal hourly rate plus the calculated premium base. Jim s normal hourly rate for all Pay Items is To calculate his overtime earnings at time and a half add half of the Premium Base to his normal hourly rate and multiply by = x 4.5 = You will then enter the overtime earnings in the MISCELLANEOUS WAGE MANAGER using a piece rate pay item that is not marked RegOT. After entering the overtime earnings verify the employee and complete payroll. 22 Piece Rate Pay