Creating pay rules

  1. Select Payroll Administrator > Contract Pay > Setup > Pay Rules.
  2. Click Create.
  3. Specify this information:
    Pay Rule
    Specify a name for the pay rule.
    Description
    Optionally, specify a description for the pay rule.
    Active
    Optionally, select this check box to make the pay rule active.
  4. On the Detail tab, specify this information:
    Contract Pay Class
    Specify a pay class to use to track and report the total hours and wages associated with the contract.
    Cycles
    Use the check boxes to specify the pay cycles in which time records are generated for an employee's base contract pay and any additional assignments associated with their employee contract.
    Other Amount Pay Class
    Optionally, specify a pay class to use to determine which contract pay codes are used for calculating the wage amount and updating the resource’s Other Amounts fields.
    Other Amounts
    Optionally, use the check boxes to specify which resource’s Other Amounts fields are updated with wages derived from the employee’s Contract Base Pay and Additional Pay. This is used by the Benefits Management module as the basis for the computation of the employee benefits coverage and contribution.
    Docking Pay Class
    Optionally, specify a pay class to use to account which contract time records are classified as docked hours. This is used when employees have exhausted all their leave credits or have no available leave credits.
  5. On the Time Record Processing tab, specify this information:
    Time Record Generation Option
    Select a time record generation option.
    Option Description
    Paid By Pay Cycle A time record is created for every pay cycle based on the employee's potential earnings.
    Paid By Work Period A time record is created for every work period in a pay cycle. The time record is based on the employee's potential earnings for the work period.
    Earned + Reserved By Pay Cycle Two time records are created per pay cycle. One time record contains the employee's earned hours and wages. The other time record contains the employee's reserved hours and wages.
    Earned By Work Period + Reserved By Pay Cycle

    An earned time record is created for each work period within a pay cycle. A reserve time record is created for the whole pay cycle.
    Daily Earned + Reserved By Pay Cycle An earned time record is created for each worked day within the pay cycle. A reserve time record is created for the whole pay cycle.
    Note: Earned hours and wages are calculated using the number of days worked from the employee's work schedule
    Prior First Pay Cycle Start
    Optionally, specify how employees are paid that have earned pay on days before their first pay cycle start date. The selected option is also used when an employee becomes eligible for pay based on the first pay cycle start date on their work schedule. If this field is left blank, No Reserve is used.
    Note: You cannot select All In Reserve if the Time Record Generation Option field is set to Paid By Pay Cycle or Paid By Work Period.
    Late Mid Pay Cycle Start
    Optionally, specify how to pay employees that have a base assignment start date that falls mid pay cycle. If this field is left blank, the Pay Actual option is selected.
    Note: You cannot select the All In Reserve option if the Time Record Generation Option field is set to Paid By Pay Cycle or Paid By Work Period.
    Regular Pay Code
    Select a pay code to use to pay employees with regular time records.
    Reserve Pay Code
    Optionally, select a pay code to use to pay employees with reserve time records.
    Note: You must specify a value in this field if the Time Record Generation Option field is set to:
    • Earned + Reserved By Pay Cycle
    • Earned By Work Period + Reserved By Pay Cycle
    • Daily Earned + Reserved By Pay Cycle
    Retroactive Regular Pay Code
    Optionally, specify a pay code to use for adjustments on regular time records.
    Retroactive Reserve Pay Code
    Optionally, specify a pay code to use for adjustments on reserve time records.
    Withhold Reserve
    Optionally, select a value to withhold the employee’s reserve wages until a specific date based on the selected option. If this field is left blank, No is selected. You cannot select Yes; After Work End Date or Yes; During Leave Of Absence if the Time Record Generation Option field is set to Paid By Pay Cycle or Paid By Work Period.
    Option Description
    No To continue paying the reserves on pay cycle after base pay segment end date.
    Yes; After Work End Date To continue paying the reserves on pay cycle after the contract pay work schedule work end date.
    Yes; During Leave Of Absence To continue paying the reserves after the leave of absence on the pay cycle that includes the start date of the base pay segment which is the employee’s return date. The first segment end date and next segment start date are included on different pay cycles.
    Do Not Allow Overpayment
    Optionally, select this check box to manage the overpayment of an employee pay per pay cycle.
    Amount Threshold
    Optionally, define a threshold for the allowable overpayment of an employee per pay cycle.
    Summer Step Down
    Optionally, select this check box to pay a late-start employee the pay cycle wages based on the full contract amount and have a pay reduction in the summer. This field is not available if the Time Record Generation Option field is set to Paid By Pay Cycle or Paid By Work Period.
    Equalize Wages
    Optionally, select whether the late-start employee should receive the same pay cycle wages as an employee who starts at the beginning of the contract year. If this field is left blank, Yes; No Adjustment is used.
    Option Description
    Yes; No Adjustment Indicates that the late-start employee should receive the same pay cycle wages as an employee who starts at the beginning of the contract year.
    Yes; With Adjustment Indicates that the late-start employee should receive the same pay cycle wages as an employee who starts at the beginning of the contract year and an option to indicate the percent of adjustment amount allowed to be computed per pay cycle allocated to be added to the employee’s wages after the contract work period.
    Adjustment Tolerance
    Specify a percentage of the adjustment amount that is allowed to be computed per pay cycle and allocated to be added to the employee’s wages after the contract work period. You can specify a value if the Equalize Wages field is set to Yes; With Adjustment.
    Truncate Wage Calculation
    Optionally, select this check box to truncate the annualized contract amount to the dollar when computing the equalized pay cycle amounts.
  6. Click Save.