Enter Wage Codes

Explanation

This activity is used to enter wage codes. The main task of the wage code is to carry information from the schedule definitions, and IFS/Time and Attendance to the payroll system. Most wage codes you will enter in this activity are therefore to be found also in the payroll system. You will only use a subset of the payroll wage codes to cover the time and attendance function. Supplementing the payroll related wage codes, are the time and attendance specific wage codes. These refer to, e.g., time balances, lunch breaks, etc. 

Each wage code is connected to a default wage type. The wage type is used to group the hours distributed on wage codes into different categories. In some cases, you will need to define a wage code that will occur in more than one wage type. However, there will be only one default wage type. The following wage types are used:

Normal

Wage codes for regular scheduled work time. This type is the one used in the schedule definitions to point out the regular scheduled work time. Examples, 010 Hourly wage, or 015 Monthly salary.

Extra Time

Wage codes for compensation between scheduled normal time and normal working hours as per contract, i.e., supplementary hours between part-time and full-time.

Overtime

Various wage codes for work beyond the scheduled regular time and extra time.

A regular hourly rate can also occur as an overtime wage code in the wage report. This is because some groups of employees account for overtime as the regular hourly rate plus an overtime increment. Nevertheless, the regular hourly rate (hourly wage) must be registered with the Normal Time wage type. The transition to the overtime wage code occurs at a later stage. This is also discussed in the Specified Overtime section below. When overtime is accounted, the time shown on the wage codes linked to the Overtime wage type is totaled.

Increments

Wage codes for increments will be linked to the Increment wage type. Examples of increments are:
- additional pay for shift work
- additional pay for inconvenient working hours
- reporting for duty at short notice

Time accounted as increments is not included in the calculation of employee presence hours, but instead as an additional compensation to these.

Break

The Break wage type is only used if unpaid breaks are scheduled. You register breaks under day types (which are descriptions of the work time). The break period is then automatically deducted in connection with the calculation of the day’s result and is not taken into account in the final result. No specific wage code for the break is required; you can use the Normal Time wage code for the employee's group. If you employ a break wage code, you must register this with its own code and link it to the Break wage type. An advantage of having your own break wage code is that the day type can be easier to read.

Lunch

A wage code with the lunch wage type is used to define the lunch period. Scheduled lunch periods are automatically subtracted, if the employee does not clock out for lunch. You must employ the Lunch wage type for personnel with the right to lunch flex; otherwise, the calculation program does not know which break should be considered for lunch. You need not register a specific wage code for lunch; you can use the normal time wage code or a break wage code. If you want to employ your own lunch wage code, you have to register a specific code and link this to the Lunch wage type.

Information

Wage codes of the Information type are used to indicate when a particular event occurs. The only information wage codes you need to register are those which allow you to track any accounting deficit of excess of a certain balance. Since these generally do not occur in the payroll system, you can name them anything you like.

You can also use information wage codes in connection with certain types of absence, e.g., permission and official matters. Using a control parameter, certain absence wage codes can be converted from the absence type to the information type. In such cases, the time will be accounted with the scheduled normal time wage code, together with the absence wage code selected as an information wage code. This option is described in more detail in the Absence Parameter section.     

Balance Accrual

This type of wage code is mainly used when employees have time balances of Flex or Switch type linked in their work schedule assignments. Balance Accrual type wage codes are required to be connected to flex and switch time balances in order to allow the system to add flex hours and switch hours in to the employee's respective balances.

Balance Withdrawal

This type of wage code is mainly used when employees have time balances of Flex type linked in their work schedule assignments. In the same way that Balance Accrual type wage codes are linked to a flex time balance in order to add hours to the employee's balance, Balance Withdrawal type wage codes are used to withdraw hours from the flex balance. 

Balance

Wage codes of Balance type are registered in time balances as positive and negative wage codes. It is used to indicate the number of hours or days that has been added to or withdrawn from a specific time balance. If connected to a time balance, this wage code will be visible in the time reporting result of an employee.

Specified

A specified wage code is employed in some cases for overtime periods. These are fictitious wage codes which are translated to one or two regular wage codes at calculation. These regular wage codes are defined with one or more sequence steps. They are registered in the Specified Overtime window.

Absences

The absence type must be registered for all types of absence. The absence type is completed with a number of parameters in the Absence Parameters window.

The identity of the wage codes

The length of the wage code identity is controlled in the Wage Class window. By default, the length is four characters. This can be changed to 10 characters if required.  

Prerequisites

Before you enter the wage codes, at least one wage class must have been entered.

System Effects

As a result of this activity you can proceed with entering schedules and rules.                              

Window

Wage Codes

Related Window Descriptions

Wage Codes

Procedure

Verify that the correct wage class is shown in the title bar in the Wage Code window before you start your registration. 
Use the following work flow:

  1. In the Wage Codes window, enter basic information, such as the wage code ID, description, and wage type, for every wage code you will use.
  2. In the Absence Parameters window, add information to the wage codes concerning absence.
  3. In the Overtime for Compensatory Leave window, enter the translation from the wage codes concerning overtime cash, to overtime for compensatory leave.
  4. In the Specified Overtime window, enter the basic pay and the increments for overtime. This is only applicable if you should have two wage codes when working overtime, basic pay, and the overtime increment. 


Enter Wage Codes:

  1. List the appropriate wage codes from the payroll system that will be used in the time and attendance function, and in the schedule descriptions.
  2. In the Wage Code field, specify the same code as the one used in the payroll system. In the Wage Code Name field, fill in the name used in the payroll system.
  3. If known, list the supplementing wage codes. You can also zoom into the Wage Codes window, later on, when you need to add a new wage code.
  4. Specify the wage type which is generally valid for the wage code, in the Wage Type list.
  5. If the wage code will be transferred to a payroll system, you must specify a transfer type in the Transfer Type list.