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Evo-ERP and DBA Classic >> Payroll >> how to do a raise mid pay period
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Message started by cathyh on 09/26/08 at 10:28:53

Title: how to do a raise mid pay period
Post by cathyh on 09/26/08 at 10:28:53

I can not figure out how to do a pay raise mid pay period.
There is only one line available for hourly rate and I have two different rates to add to a pay check.
Is it possible to do two separate pay checks for one period? Would this affect taxes?

Title: Re: how to do a raise mid pay period
Post by kkmfg on 09/26/08 at 11:11:37

You can print multiple paychecks for a single employee during a single pay period. However, from our experience it does seem to affect the tax rate. But, if it's only for one week for one or two employees then it's probably not that big of a deal.

However, if you really want it on one paycheck you might be able to call it vacation or holiday pay. It asks for the per hour rate for every type so you can just change the hourly figure for one of those for one week. This is sort of a cheater's way to do it. The taxes and everything will come out right this way.

Title: Re: how to do a raise mid pay period
Post by GasGiant on 09/26/08 at 11:19:06

We cheat even worse. We time raises to the beginning of a pay period. Promotions, too.

Once in awhile we still have to make a mid period change, and then they figure the two-weeks worth of pay, divide by 80 hours, and change the rate to the "blended" number for one payroll, then have to change it again for the next payroll.

Title: Re: how to do a raise mid pay period
Post by cathyh on 09/26/08 at 15:03:38

Thanks C & C for your input. Right now we are trying to get it to match our Quickbooks Payroll so we went with putting it in Sick Pay. Since the raise was only for two days, I think the two check idea would really change the tax total.
We are having issues with taxes not matching, mainly state (CA) but also a couple of federal. All the settings seem to be correct. I haven't really looked at it yet.

I think its a great idea to insist that pay raises and promotions begin at the start of a pay period!

Title: Re: how to do a raise mid pay period
Post by EMI Ann on 10/13/08 at 07:52:14

Calling a raise sick pay can create its own set of problems, particularly if you pay sick pay and it's earned by the hour worked. In Payroll M set defaults, you have three un-named categories. We have set them up for Raise, Shift Diff, and Upgrade. We use Shift Diff for shift differentials, and Upgrade for work during the regular shift that pays at a higher rate (say, fine work on a scope as versus standard assembly). If a raise is granted mid-pay-period, we can just put in the raise amount and the number of hours on the fly for that pay period (ex. 24 hrs @ $0.25), then enter the new rate in his/her page after payroll is closed out, and can handle a shift differentail or an upgrade the same way. If employees have a regularly used differential or upgrade, you can set it up in Employee Info, Pay categories for each employee. Using this method of taking care of pay quirks allows us to keep our "regular" hours as reported for workman's comp rating, health/life insurance eligibility, etc. correct. The other items will report in their own collumns on reports, so they are a little easier to track.
Hope this helps!
Ann Luce
EMI Filter Company

Title: Re: how to do a raise mid pay period
Post by cathyh on 10/13/08 at 13:22:50

Thanks Ann for your input. We do not use Sick Pay category- we have one category for Paid Time Off. I ended up putting it in Double time (we never have double time) because we have the three other categories defined. I don't know if this has state law ramifications or not!
I did notice that the vacation (paid time off) accrual does not pick up hours from the user defined categories when totaling hours for the accrual calculation based on hours worked, at least it didn't pick up the "bonus" entry of 1 hour, which we don't mind. But if it was hours worked it would be a problem.