Summary

The Rate Code Maintenance window is used to create and maintain rate codes. Rate codes allow you to assign different hourly rates to employees depending on the work they are performing. This allows you to set standard pay amounts for pay that is not related to the hourly pay rate attached to each employee record.  When a rate code is attached to a time card line item, the hourly rate attached to the rate code will override the hourly rate on the employee record. For example, if the hourly rate on the employee record is $15.75 and the hourly rate on the rate code is $18.00, the hourly rate of $18.00 will be used on the time card line item.

Overtime pay is generally set up as a pay code (PR> Maintenance> Pay Code) rather than as a rate code because you can set up a rate multiplier on a pay code (PR> Maintenance> Pay Code> Rate Multiplier field). The rate multiplier will increase the hourly rate attached to each employee record when the time cards are generated. For example, if you set up an overtime pay code with a rate multiplier of 1.5, the hourly rate on the employee record will be multiplied by 1.5 when the overtime pay code is attached to a time card line item.

If you use rate codes, make sure the Payroll module is set up to use them (PR> Utilities> Setup> General tab> Use Rate Codes toggle). If the Use Rate Codes toggle is not checked, the Rate Codes field on the Timecards tab of the Employee Maintenance window will not be enabled.

Step by Step

1     View the existing rate codes in the Payroll module.

• Open the Rate Code window (PR> Maintenance> Rate Code).
• Use the Status field to filter the rate codes by status.
  • Click SHOW FILTERS if the Status field is not displayed.
• Select a rate code and click DELETE to delete the selected rate code.
  • You cannot delete a rate code that is attached to an employee default time card (PR> Maintenance> Employee> Timecards tab). You cannot delete a rate code that is attached to employee history records.
• Select a rate code and click EDIT to open the selected rate code.
• Click ADD to create a new rate code. This will open the Create Rate Code window.

2     Create or modify a rate code.

• Enter a rate code in the Code field. The Rate Code can be up to eight alphanumeric characters.
• Enter a Description. The Description can be up to 30 alphanumeric characters.
• Enter a GL Account Number, Workers' Compensation Code and Project Management Task Code and Type Code to override what is on the employee record when the rate code is attached to a time card line item.
  • Leave the fields blank to use the employee defaults.
  • GL accounts are attached to default time card line items. When a GL account is attached to the rate code, the GL account on the rate code will override the GL account on the default time card line item. The GL account on the rate code will also override the GL account attached to the pay code on the time card line item.
  • Workers' compensation codes can be attached to the employee record (PR> Maintenance> Employee> Financial tab> Workers' Compensation field) or to the default time card line items (PR> Maintenance> Employee> Timecards tab> Workers' Compensation field). The workers' compensation code attached to the employee record will populate on the default time card line items. The workers' compensation code on the rate code will override the workers' compensation code on the default time card line item.
  • The Project Management Task Code field is used to enter a Project Management module task code on the time card line item. The task code attached to the rate code will override the task code set up on the default time card line item. The Project Management Task Code field will only be enabled if you have the PM module installed and set up to interface with the Payroll module (PR> Utilities> Setup> General tab> Enable Project Management Interface toggle).
    • You can also specify a partial PM task or type code. When calculating the PM impact on labor timesheet items, the task or type code information specified on the rate code will have precedence over task or type code information specified on the pay code. For example, if the rate code has a partial task code of XXX- and the pay code has a full task code of AAA-BBB, the task code that will appear on the timesheet would be XXX-BBB.
• The Active toggle is used to set up a rate code with an active status. When a rate code is attached to an employee default time card (PR> Maintenance> Employee> Timecards tab), or a time card line item in the Computer Checks process (PR> Computer Checks> Timecards> Create a line item), there is a drop-down menu that filters the rate codes that display in the selection window by active status. By default, only active status rate codes will display in the selection window, but users will be able to attach inactive status rate codes to time card line items.
• The Revisions section is used to set the hourly rate that will be applied when the rate code is attached to time card line items. The Employees section is used to set the hourly rate of a specific employee.
• If you would like to add an hourly rate to the rate code, add a line item to the Revisions section. Click ADD to create a generic hourly rate. This will add a line item to the Revisions section. You can modify an existing revision by modifying the fields of an existing line item in the Revisions section.
  • The Effective Date field is used to set the date the revision will become effective.
  • If you assign an hourly rate to the rate code, the hourly rate will override the hourly rate on the employee record when it is attached to a time card line item. This allows you to set standard pay amounts for pay that is not related to the hourly pay rate attached to each employee record.
  • If there is a rate multiplier attached to a pay code on a time card line item (PR> Maintenance> Pay Code> Rate Multiplier field), the hourly rate on the rate code will be multiplied by the rate multiplier on the pay code when a time card is generated. For example, if you have a pay code for overtime pay that has a rate multiplier of 1.50 and the hourly rate on the rate code is $18.00, the rate multiplier on the pay code will be applied and the employee will be paid $27.00 (18*1.5=$27.00) a hour on the time card line item. This applies even if the employee is attached to the rate code with a specific hourly amount (employees are attached to rate codes using the Employees section). The hourly rate on the rate code set up specifically for the employee will be applied to the rate multiplier on the pay code. For example, if the employee is attached to the rate code with an hourly rate of $10.00, the rate code will be applied and the time card line item rate will be $15.00 (10*1.5=$15.00).
  • Click DELETE if you would like to delete a selected revision. You cannot delete a revision that is attached to an employee default time card. You can only delete the latest revision. If you would like to delete all of the revisions attached to a rate code, start with the most recent revision and delete the previous revisions in descending order by effective date.
  • Click UPDATE after the revision details are complete.
• The Employees section is used to attach employees to a rate code revision. This allows you to set a specific hourly rate on employee records during the time when a rate code revision is effective. Select a rate code revision in the Revisions section and add an employee to the Employee section using the ADD button.
• Click the Save button when complete to save the rate code.