Pay codes
You enter pay codes on time records to indicate what type of pay the employee receives. Pay codes define the following:
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How pay is calculated
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Where pay is expensed to in the general ledger (optional)
Pay codes can be alphabetic or numeric. For time card entry, numeric codes are usually more efficient.
You must assign each pay code to a pay summary group. Pay summary groups
Overtime pay codes
When you define an overtime pay code, you define regular and overtime premium rates separately. You need to define these separately for use in special calculations, such as FLSA overtime due to an employee and, optionally, for separate expensing of regular and premium pay.
Shift pay codes
You can set up pay codes to use for different shifts. You can set up shift pay with up to four flat amount shift differentials or percentage shift differentials; or you can set up shift pay codes to use a shift table. Shift tables allow up to nine shifts with different rates defined by job code, grade range schedule, or step and grade schedules.
Example
The Two Rivers Company defined the following pay codes (for clarity, these examples are alphabetic codes).
| Kind of Pay | Pay Code |
|---|---|
| Regular pay | REG |
| West Coast Shift | SHW |
| East Coast Shift | SHE |
| Overtime 1 | OT1 |
| Overtime 2 | OT2 |
| Vacation | VAC |
| Sick Pay | SIK |
| Indirect Tips | ITP |
| Direct Tips | DTP |
| Bonus | BNS |
| Cell Phone | CEL |
| Group Term Life | GTL |
