Process Timecards without Processing Payroll

The labor module of EBMS can be used for a variety of time and attendance functions.  These tools include time clocks, task management, and remote work order tools that feed labor details into the timecard.   The clock in / clock out times for projects, hours spent on work orders, and start and stop times for a worker's day can be valuable data for labor manager purposes.   Most companies use this data to process payroll or to export to a 3rd party processor.   The company many not wish to use this labor data to process payroll for the following reasons:

  1. The company uses the task and work order system but obtains time card information from another source.  Since the labor entered in the timecard tab of the task is recorded within the worker's timecard, the following steps are recommended to process the timecard data without processing worker pay.

  2. The EBMS user is implementing the time tracking tools, job, and task and work order system but chose to wait to implement payroll till the beginning of the next fiscal quarter or year.  The following steps are recommended to process the labor details until payroll is implemented.

  3. A service department has implemented the task and work order system or the job management tools for a subgroup of workers within the company.  The legacy time tracking system which is used by all Workers is used to record payroll information.  The following steps are recommended until the entire company can implement the EBMS time tracking system.  The time can be processed using the following tools if the EBMS payroll processing system is not used:

  4. A company may wish to use the EBMS Time Track tools for time and attendance without creating timecards.  Review Time and Attendance > Clock In/Out without Timecards for instructions to use EBMS time clocks without payroll.  

Configure Labor for Time and Task Entry

Complete the following steps to configure the EBMS labor module to record labor using Tasks, MyTime, or Time Track without processing payroll.

  1. Setup the following Labor > Labor Options > General settings:

    1. Set the Payroll Year

    2. The Default Pay Type and the Default Salary Type can not be blank.  Populate if they are not already set.  Review Getting Started > Pay Types to create pay types.

    3. Enable the Enter hours daily and the Enable 3rd Party Pay Service options.   

    4. The other options such as Payroll Bank Account are not required until payroll is being processed.  

  2. Open the worker selection list by selecting Labor > Workers from the main EBMS menu.

  3. Select the worker's root folder by selecting the worker category root folder, right click, and select Edit Defaults as shown below.

  4. Click on the Pay tab and set the Frequency based on the estimated time until the recorded time is used for internal payroll, 3rd party payroll, or 1099 subcontractors.  

    1. Set the Frequency to the payroll period currently used within the company.  This option may require many open periods for a weekly or bi-weekly payroll.  Consider the following options if the company does not plan to use the EBMS Labor module to create payroll data in the near future.  

    2. Set the Frequency to Annually if the time data will not be used within the current calendar year.   Use a smaller pay period frequency if this time may be used for payroll within the currently calendar year.  

    3. Select Semi-Annually if the estimated time is a half year.

    4. Use Quarterly or another shorter pay period Frequency if the estimated time is less than 1/2 year.  The target time frame to start using the EBMS labor module to process payroll or to export data to a 3rd party payroll processor should normally be targeted at the end of a calendar quarter.  

  5. Filter down this Frequency setting to all existing workers.  Filter down to all subfolders.  Review [Main] Features > Change Defaults, Filter Down Data and Globally Change Data for instructions to set this option for all workers within the current catalog.  

  6. Set the Method setting to Payroll Service and repeat the filter down step on the Method setting to all existing workers.  Filter down to all sub-folders.  

  7. Disable the Is subject to minimum wage option since wage calculations are not needed.  Filter down to all workers and sub-folders.

  8. Possibly blank the pay rates, both Hourly Pay and Salary Pay if the labor cost transactions are not used to track labor costs in jobs or other reports.  Do not blank rates if they are used within EBMS for reporting purposes.  Filter down to all workers and sub-folders.
    EBMS will create payroll payable for any transactions that contain pay rates. A journal entry may be required to reverse any accounting labor pay transactions created during the payroll process.   

  9. Setup basic pay types.   No need to add advanced pay types.  Use the default pay types delivered with EBMS if they already exist.  Add a Default Work Code if a common work code is being used.  Review Workers > Setting Worker Defaults to set pay types and default work code.  Filter down to all workers and sub-folders if any new pay types have been added.

  10. All Worker Taxes and Company Taxes lists should be blank or tax settings should be disabled.  Filter down each tax or deduction that has been disabled.

  11. Create worker categories to separate workers that are within different locations, departments, or groups.  Create a separate category for 1099 subcontractors if they are being added to the worker list.  Review Workers > Adding and Deleting Worker Categories for instructions on creating worker sub-folders.  

  12. Create worker records including worker name and contact info for anyone including subcontractors that are entering time into EBMS if they are not entered already.  Review Workers > Entering New Workers for instructions to enter worker records.  

  13. Set the largest pay period based on the amount of time that payroll will not be processed.  The Pay Period end date should be the calendar year or quarter considering the Frequency setting filtered down to the worker records in the previous step.  

    Review Processing Payroll > Opening New Pay Period for additional instructions on this step.

Use Time and Task Entry Tools

Review Time and Attendance > Overview for information on the time tracking tools

Review Tasks > Overview or MyTime > Overview for information on work order and other task tools available including advanced tools like Flag Pay, Job Costing, Piecework Pay, dispatch tools, and Prevailing Wages.

Process Labor at End of Pay Period

  1. Process payroll by completing the payroll steps by

    1. Calculating Taxes:  Review Processing Payroll > Calculating Taxes for steps even though tax settings are blank.  

    2. Process Payments:  Review Processing Payroll > Process Payments for steps

    3. Closing Pay Period:  Review Processing Payroll > Closing Pay Periods to close this pay period.  

  2. Financial transactions are created when processing payroll unless the pay rates equal zero.  These general ledger transactions consist of credits posted to payroll payable and debit transactions to the expense account set within the work code.  These financial transactions may need to be reversed for accounting purposes.  Review this process with the company accountant or CFO.   

  3. Review the following settings If payroll is being processed by the EBMS labor module for future pay periods or create a new annual, quarterly, or Monthly pay period to repeat the labor collection process without payroll:

    1. Verify the pay period Frequency within the Pay tab of all workers.  

    2. Verify the Pay > Method for each worker.  

    3. Enable the is subject to minimum wage option if payroll is being processed.   This is an important payroll processing option if EBMS payroll or 3rd party payroll is being processed in EBMS.  

    4. Set or verify pay rates for all workers.  

    5. Set Worker Taxes and Company Taxes for all workers.