Exception, offset time record rules

Exception, offset time record rules define how Payroll reduces one type of pay for an employee when another, specific type of pay is added to the employee's time records. Payroll uses these rules to create offsetting time records for individual employees on a case-by-case basis. These rules are most often used for employees with standard time records who also have time records for paid time off such as vacation or sick time. The rules ensure that salaried employees' hours are not overstated, and hourly employees are not overpaid.

However, you do not typically use exception, offset time records for company-wide holidays. This sort of global offset can be created using the automatic time record feature.

Current status time records containing an exception pay code will cause a negative or offset pay code for the same number of hours to be created when the Offset Time Record Creation program is run.

Exception, offset time record rules consist of two types of pay codes:

Exception pay code—the pay code that triggers the need for pay to be reduced. For example, vacation time, sick time, and so on.

Offset pay code—the pay code for which Payroll creates a negative time record.

If your company has a flex plan, the Benefits Administration application creates standard time records for flex credits that employees receive as pay, even if the employee does not have standard time records set up on their employee record. For companies that do not want to issue a flex credit payment for an employee who does not have any other pay for the pay cycle, the Benefits Administration application can delete flex time records if no other time records exist for the employee in the pay cycle. For more information, see the Infor Benefits Administration User Guide.

Example

Riverbend Hospital uses an 80-hour standard time record for their full time exempt employees to reduce the amount of data entry required for time record entry. These time records are created using the pay code REG for Regular Pay. The hospital also uses the following exceptions to Regular Pay: Sick, Vacation, and Leave Of Absence.

Dick Franken is an employee who had a 80-hour REG standard time record created in this payroll cycle. He actually used 40 hours of Vacation time and only worked 40 hours. The payroll officer keys in 40 hours of Vacation for Dick, which causes his time records to total 120 hours for this payroll cycle. The payroll officer then runs the Offset Time Record Creation program, and the application automatically creates another time record line for Dick with a negative 40 hours of Regular time, correctly reducing his total time for this pay period to 80 hours (40 hours Regular and 40 hours Vacation).

Riverbend Hospital set up exception pay codes with the related offsetting pay codes as follows:

Exception Pay Code Offset Pay Code
VAC—Vacation REG - Regular
SIC—Sick REG - Regular
LOA—Leave of Absence REG - Regular