Creating payment schedules

Note: Whereas the pay frequency is system-defined and related to payroll activities, the payment schedule is user-defined. It is used to describe the days on which resources are paid. For example, if a resource is paid with a bimonthly pay frequency, you can create the payment schedule as "15th and last day of month."

Payment schedules and pay periods are used in Absence Management, Benefits, and Time Entry.

  1. Select Administrator > Set Up > Resource Components > Work Assignment > Payment Schedules
    or

    select Absence Management > Set Up > Payment Schedules

    or

    select Benefits > Set Up > Payment Schedules

    or

    select Payroll Administrator > Setup > Payment Schedules

  2. Click Create.
  3. On the Detail tab of the Payment Schedule form, specify this information:
    Effective Date

    Specify an effective date.

    Payment Schedule

    Specify a short description for the payment schedule.

    Description

    Specify a long description for the payment schedule.

    Active

    The payment schedule is active by default. Clear the check box to make it inactive. Inactive payment schedules cannot be selected.

    First Pay Period Start Date

    Specify the start date of the first pay period. (Pay periods are automatically created using this date and the Pay Frequency.)

    Current Pay Period Start Date

    Specify the start date of the current pay period.

    Pay Frequency

    Select the pay frequency.

    Note: The pay frequency on the payment schedule must match the pay frequency of the work assignment. Pay frequency is used by Absence Management, Benefits, and Time Entry.
    First Work Period Start Date

    Specify the start date of the first work period. (Work periods are automatically created using this date and the Work Period Number of Days.) Work periods are informational only.

    Work Period Number of Days

    Specify the number of days in a work period.

    HR Payroll

    Select this check box if employees in this payment schedule are processed through Payroll.

  4. Click Save.
  5. On the Overtime Options tab of the Payment Schedule form, select the Overtime Calculation Required check box. Specify this information:
    Calculate Overtime

    Select Not Eligible if the payment schedule cannot be used for Overtime calculation.

    Select Eligible; Calculate Overtime Hours if the payment schedule is an overtime plan and uses the calculated hours method. The earned overtime hours are calculated by Payroll based on the rules of the plan.

    Select Eligible; Do Not Calculate Overtime Hours if the payment schedule is an overtime plan and uses the supplied hours method. Overtime hours to be paid are specified manually.

    Work Period Number of Hours
    Specify the number of hours after which overtime is paid.
    Maximum Hours Per Day
    For daily overtime plans only, specify the number of hours after which overtime is paid.
    Overtime Pay Code

    Specify the overtime pay code. For overtime plans, Payroll automatically calculates the overtime and creates a time record for the overtime pay code.

    Only pay codes with a Calculation Type of Percent Rate and with Overtime Premium Rate can be specified or selected in this field.
    Note: We recommend that a unique pay code be used for FLSA overtime.
    Overtime Premium Rate

    Specify the overtime premium rate.

    For example, for overtime calculated at time and one half, specify 50.00 to indicate the premium rate.
    Note: If you leave this field blank, the premium rate defined for the pay code is the default.
    Work Period Option

    Specify whether overtime pay is based on a fixed work week or a fluctuating work week.

    For a fluctuating work week, the salary is intended to compensate the employee for the entire work week, regardless of the number of hours worked. With this method, the more overtime an employee works, the smaller the regular rate used in calculating overtime becomes.

    For a fixed work week, the salary is intended to compensate the employee for a specified number of hours per week.
    Note: The Work Period Option field only applies to salaried employees.
    Fixed Hours
    If you selected Fixed in the Work Period Option field, specify the number of hours per work period that a salaried employee's pay is intended to compensate.
    For double time, specify this information:
    Pay Code

    Specify the pay code to use for double overtime pay.

    Only Pay Codes with a Calculation Type of Percent Rate and with Overtime Premium Rate can be specified or selected in this field.

    Maximum Hours
    Specify the number of hours in a day after which double overtime is paid. This is used if Payroll is to compute overtime pay for hours worked in excess of the daily limit.
    Premium Rate
    Specify the premium rate for the double overtime hours. This is required to be at least 100.
    For consecutive days, specify this information:
    Pay Code

    Specify the pay code to use for overtime pay for consecutive days. Payroll automatically calculates the overtime and creates a time record for the overtime pay code for consecutive days.

    Only Pay Codes with a Calculation Type of Percent Rate and with Overtime Premium Rate can be specified or selected in this field.

    Maximum Hours
    Specify the number of hours in a day after which overtime is paid. This is used if Payroll is to compute overtime pay for hours worked in excess of the daily limit.
    Premium Rate
    Specify the premium rate for the overtime hours for consecutive days. This is required to be at least 100.
    Consecutive Days Overtime

    Select Not Eligible for no calculation of consecutive days overtime. All the overtime parameters for consecutive days should be blank.

    Select Eligible; Ignore Work Period Hours for Payroll to calculate for consecutive days overtime regardless of the total hours in a work period.

    Select Eligible; Check Work Period Hours for Payroll to calculate for consecutive days overtime after exceeding the hours in a work period.

    Number of Consecutive Days

    Specify the number of consecutive days before calculating for the consecutive days overtime.

    This is required if the Consecutive Days Overtime field is set to Eligible; Ignore Work Period Hours or Eligible; Check Work Period Hours.

    Daily Hours Threshold
    If specified, each consecutive day must exceed this threshold to be considered as consecutive days overtime.
    Work Period Hours Threshold
    If specified, the total hours in a work period must exceed this threshold to apply the overtime.
  6. On the Pay Periods tab of the Payment Schedule form, review the Pay Periods scheduled.
    Note: If you have an allowance, the Start and End dates must be the pay period in which the allowance is to be paid out. The exception is a long-term allowance that is set up year-to-year to be paid out each month or pay period. For example, a cell phone allowance.
  7. On the Work Periods tab of the Payment Schedule form, review the Work Periods scheduled. Work periods are informational.
  8. Click Save.