Administering Wage Codes for Job and Wage Hours—Exercises

Main Exercises

Purpose: The purpose of this exercise is to show you how to create and change wage classes and to establish your own set of wage codes.

Creating a New Wage Class

Purpose: The purpose of this exercise is to show you how to create a new wage class.

Windows:
Wage Classes
Change Wage Class

  1. Open the Wage Classes window and populate it with the current wage classes.
  2. Create a new record, and create a wage class with a unique ID. The ID should correspond to your production department, e.g., PROD-0.
  3. Open the Change Wage Class window and select your new wage class. 
  4. Check to see whether any wage codes or schedules are available.

Creating a New Wage Code

Purpose: The purpose of this exercise is to show you how to define a standard set of wage codes.

Windows:
Wage Codes

  1. Open the Wage Codes window. 
  2. Create two wage codes for normal wages; one for clerks (monthly salary) and one for the other workers (hourly wages).
  3. In your company, overtime is issued with two new wage codes: one that increases pay by 100%, and one that increases pay by 50%. Make sure that the  Wage Code Name field specifies that the wage codes are used for payment in cash.
  4. The employees can choose to receive compensation either in cash or in additional free time (compensatory leave). This means that you need to create two corresponding wage codes; one for overtime comp 50% and one for overtime comp 100%

Note:  The Wage Code Name field should indicate that the wage codes are used for compensatory time, and the Wage Type Time should be Overtime

  1. Your company uses both flextime and compensatory time. Create two wage codes: one for Flex balance (the Wage Time Type field should specify Flex Balance) and one for Comp balance (the Wage Time Type field should specify Comp Balance). 
  2. You must be able to register absences, you need three wage codes covering the most common absences: one for sickness, one for vacation, and another one for unpaid absence.
  3. Register a wage code for lunch.

    Note: Make sure that the Valid check box is selected. Otherwise, you will be unable to use the wage codes in IFS/Time & Attendance or any other module. If you want to transfer time transactions from IFS/Time & Attendance to IFS/Payroll or any other Payroll system, you must also define the transfer parameter in the Transfer field.

Creating Compensatory Parameters

Purpose: The purpose of this exercise is to show you how to define the parameters for conversion from overtime to compensatory time.

Windows:
Overtime for Compensatory Time

  1. Open the Overtime for Compensatory Time window. 
  2. Create a new record. 
  3. Enter a wage code in the Cash Wage Code field. Use the list of values and select the cash wage code for overtime 50% which you created in the Creating a New Wage Code exercise. 
  4. In the Comp Wage Code field, select the corresponding comp wage code for overtime 50%, which you created in the Creating a New Wage Code exercise. 
  5. Enter a value in the Comp Factor field. This is how you define how your wage codes for overtime cash translate to your wage codes for compensated overtime. For the wage codes that increase time or cash by 50%, use a compensation factor of 1,5.
  6. Register the wage codes for overtime 100% the same way. Use a compensation factor of 2.

Copying Wage Codes

Purpose: The purpose of this exercise is to show you how to copy wage codes from one wage class to another.

Windows:
Wage Codes
Wage Classes

  1. Open the Wage Classes window. 
  2. Create a new wage class with a unique ID.
  3. Open the Wage Codes window. Right-click and then click Change Wage Class to access the new wage class.
  4. Copy wage codes from the wage class that you created in the Creating a New Wage Class exercise above by right-clicking and then selecting Copy Wage Codes. In the Company and Wage Class lists, enter or select a value.  

Note: The company and wage class in which you are currently working are the ones to which you copy wage codes. If you want to copy wage codes to another company and/or wage class, you have to right-click and then click Change Company and/or Change Wage Class.

  1. Check to see if the wage codes were copied as planned. 

Note: You should use caution since all wage codes with the same name will be overwritten.