Benefit Pay
EBMS includes many tools to calculate and manage a company’s payroll
benefit pay such as vacation pay, holiday pay, sick pay, and etc. Benefit
pay is often part of a worker’s benefit package and will vary on the payment
plan of the employer. The following section explains the steps to create
hourly benefit pay for a Worker. Benefit pay for a salaried Worker that
is paid above the annual salary amount uses the same setup procedures.
Review the Salaried
Pay > Entering Salaried Employee Information section of this manual
for details on recording benefit hours for salaried Workers without altering
their salary.
Benefit pay can include a fixed number of days or hours per year such
as holiday pay or may vary based on the Worker’s employment history. The
following section will list some common benefit pay types but EBMS is
not limited to the following options:
Holiday Pay
Complete the following steps to setup holiday pay for Workers:
Go
to .
Highlight the holiday pay type and click on the properties button
to view an existing pay type or click on the New
button to create a new pay type.
Enter
an easy-to-remember pay type Description for holiday pay such
as Holiday.
The
Base should be set to Hour
since holiday pay is based on an hourly rate.
The
Type option must be set to Benefit since it involves benefit
pay. This option instructs EBMS to track the total amount of hours
and pay for a specific Worker. If the user does not wish to track
hour history for holiday pay, the Type
can be set to Standard and
all benefit features will be disabled.
The
Reset Hours Available option should
be set to At end of calendar year
option.
Disable
the Carry unused hours to next year
option since holiday hours are used on the holiday and cannot be accumulated
into the next year.
Click on the OK button to save
changes to the pay type.
Insert
the holiday pay type into all the Worker’s pay rate tables. Go to
highlight the Workers root
folder or subfolder, and click on
the Edit Defaults button.
Open the Pay tab to view the
standard pay rates as shown below:
Note: To insert a holiday pay type into selected
Workers instead of all Workers, replace the steps above by going directly
into the Worker record () and click on the Pay tab
Click
on the New Rate button if
no holiday rate exists or highlight the holiday pay rate and click
on the Properties button if the rate already exists.
Select
the holiday Pay Type.
The
Work Code should reflect the benefit
work code such as HOL (Holiday) or BEN (Benefit)
that directs the cost to a payroll overhead expense account.
The
Active option should be enabled to make
the pay rate active.
Set
the Rate Formula to Equal
to so the pay rate equals the Worker’s hourly rate. This setting
can be set to an hourly amount if a fixed hourly rate is paid to the
Worker.
Set
the increment Condition to
Never since the Increment
settings are only used for benefit pay types that are limited such
as vacation or sick days.
The
number of holiday hours paid to the standard Worker should be entered
within the This Calendar Year
field in the Hours Available
section. Keep the From Previous Years
value at zero since holiday hours are not carried over from the previous
year. The hours for the This Calendar
Year should = number of holidays * hours paid per holiday.
Note that this value can be altered for individual Workers if holiday
hours are not consistent for all Workers.
Click
on the OK button to save the
pay type. Filter down the pay type to all Workers by right clicking
on the pay type and selecting Filter
Down from the context menu.
Enable
both filter-down options to copy settings to all Workers. The filter
down will copy the pay type and all the pay type settings to all Workers
in the folder or subfolder.
Enter
the Holiday Pay Type within
the timecard to the holiday type whenever holiday pay is paid to the
Worker. The work code entered in step 2 will default within the timecard.
Review the Processing Payroll >
Entering Timecards section for more details on entering timecards.
Vacation Pay
Vacation pay may be very similar to holiday
pay although additional management tools are needed to record the amount
of vacation days available for each Worker.
Complete the following steps to allot
vacation hours based on a fixed number of hours, a manually entered number
of hours, or a consistent increase of hours per year.
Go
to .
Highlight the vacation pay type and click on the properties button
to view an existing pay type or click on the New
button to create a new pay type.
Enter an easy to remember
pay type Description such as "Vacation".
The Base should be set to Hour
since vacation pay is normally based on an hourly rate.
The Type option must be set to Benefit since it involves benefit
pay. This option instructs EBMS to track the total amount of hours
used and available for each Worker.
The Reset
Hours Available option should be set to either:
At
the end of calendar year if the vacation hours
for all Workers are reset at the end of the calendar year
At
Worker anniversary if the Worker
hours are based on the Worker’s employment year and are reset
at the end of the Worker’s anniversary.
NOTE: The Worker’s anniversary date is
determined by the hire date found within the Worker’s personal
tab. If the anniversary date needs to be different then the
hire date because of part time status changes, place the original
hire date in the Worker note area and change the hire date
to the desired anniversary date.
Never is used if the user
wishes to zero and change the vacation hours manually. This
option is not recommended unless a high level of user intervention
is desired.
Enable the Carry
unused hours to next year option if the company policy
allows the Worker to accumulate vacation time from one year
to the next. Disable the option if vacation time is not transferred
from one year to the next.
Click on the OK
button to save changes to the pay type.
Insert
the vacation pay type into all the Worker’s pay rate tables. Go to
Labor > Options > Worker Categories,
highlight the Workers root
folder or subfolder, and click on
the Edit Defaults button.
Click on the Pay tab to view
the standard pay rates as shown below:
Note: To insert a vacation pay type into selected
Workers instead of all Workers, replace the steps above by going directly
into the Worker record () and click on the Pay tab.
Click
on the New Rate button if
no vacation rate exists. Highlight the vacation pay rate and click
on the Properties button if
the vacation rate already exists.
Select the vacation Pay Type that was created in
step #1.
The Work Code should reflect the
benefit work code such as VAC (Vacation)
or BEN (Benefit) that directs the cost to a payroll overhead expense
account.
The Active option should be enabled to
allow the pay rate to be used within the Worker’s timecard.
Set the Rate Formula to Equal
to so the vacation pay rate equals the Worker’s hourly
rate. This setting can be set to an hourly amount if a fixed hourly
rate is paid to the Worker.
The Increment
Condition can be set to the following 2 options:
The Never
option should be used if the user wished to manually set the
number of vacation hours each year or if the number of vacation
days or hours do not change from one year to the next.
The Beginning
of Calendar Year option or Beginning
of Anniversary Year option (depending on the setting
within the pay type – ) should be used to reset the vacation
hours annually.
The Increment
Amount and Hours Available
settings should be set globally only if the amounts are identical
for all Workers. Normally these values are set for individual
Workers as explained later in this section.
Click on the OK
button to save the vacation pay type.
Right
click on the Vacation pay
type and select Filter Down
from the context menu.
These steps are necessary only to insert the vacation pay type into
all Workers. This will filter down not only the pay type but all the
settings within the pay type.
Enable
the top option (Check this box to
change existing data along with the folder defaults) to insert
the new holiday pay into existing Worker records. Click OK
to insert pay type in all Workers.
Set
vacation days for individual Workers.
Open the Pay
tab of a worker and go to .
Highlight the Vacation
pay rate and click on the Properties
button and the following dialogue will open:
Set the Increment
Condition to one of the following options if the default
setting is not correct.
The Never
option should be used if the user wished to manually set the
number of vacation hours each year or if the number of vacation
days or hours do not change from one year to the next.
The Beginning
of Calendar Year option or Beginning
of Anniversary Year option (depending on the setting
within the pay type – ) should be used to reset the vacation
hours annually.
Enter the increment Amount
to increase the hours available for next year.
Next years available hours will be increased from
the hours available this year by the increment Amount.
For example, if a worker receives an extra vacation
day each year the Condition
should be set to Beginning of
Year and the Amount
should be set to 8 hours. Note that the system does not automatically
create thresholds for incrementing
vacation so the manual setting (Condition = Never)
should be used for any vacation policy that does not increment
time consistently each year.
Enter the total number of vacation
Hours Available This Year
for the Worker. This value will be copied as the next year's
amount when the current year payroll is closed unless the number
of hours is increased based on the Increment
Amount.
The hours From
Previous Years will be disabled unless the Carry
unused hours to next year option is enabled within the
pay type. See to change this option setting.
Save
changes by clicking on the OK
button.
Vacation, sick, or other benefit pay factored
from the total hours worked requires an advanced benefit pay calculation
script. Contact you Eagle Business Software representative to implement
a payroll script to configure a formula based method of calculating Hours Available.
Sick and Leave Pay
Review Sick
and Leave Pay for setup instructions.