Earnings: Reduce Auto Pay

Overview
Setup
  - Earnings Setup
  - Employee Salary Setup
       - Hourly Employees
Verify Results

 

Overview

Admin users can turn on Reduce Auto Pay for specific earning codes. When these codes are used in Payroll Detail Entry or Quick Entry, they will automatically adjust the employee’s standard salary.

For example, if a weekly salaried employee normally works 40 hours per pay period but takes 8 hours of time off, the Reduce Auto Pay process will automatically adjust their 40 hours worked to 32 hours to accommodate the time off.

In the image below, the earning code “Holiday” has been set to Reduce Auto Pay. 8 hours of Holiday time were entered in Payroll, so the Reduce Auto Pay feature automatically adjusted the 40 Salary hours to 32 hours.

Check Preview:

 

 

Setup

Earnings Setup

To start the Reduce Auto Pay setup, navigate to Company (module) → Company Setup → Earnings.

• Select Edit on the Earning code you wish to reduce—common earning codes to apply this process to include Paid Time Off, Holiday, and Vacation.

• Check the Reduce Auto Pay checkbox.

• Select Save.
• Repeat this process for as many Earning codes as you wish.

 

Employee Salary Setup

After setting up the Earnings codes, navigate to HR Admin → Manage Employees → Employee Center → select Employee → Payroll (tab) → Rate (tab) to finalize employee salary setup.

• Select Edit on the employee’s active Base Rate.

Four fields MUST be filled to enable the proper Reduce Auto Pay setup.

• Auto Pay: Select Pay base salary each paycheck from the drop-down menu.

• Rate: The employee’s hourly rate. Calculate this by dividing the employee’s salary per pay period (Salary field) by their regular hours per pay period (Default field). This MUST be calculated correctly to ensure proper payment.

• Salary: The employee’s salary per pay period.

• Default: The number of regular hours the employee works per pay period.

Select Save. Repeat this for each employee who should be set up with the Reduce Auto Pay function.

 

Hourly Employees

This feature is typically used for salaried employees, but it can be set up for hourly employees. Follow these steps for an hourly employee’s setup:

• Navigate to HR Admin → Manage Employees → Employee Center → select Employee → Information (tab) → Rate (tab).

• Select Edit on the employee’s active Base Rate.

For hourly employees, only three fields must be filled to enable the proper Reduce Auto Pay setup:

• Auto Pay: Select Pay default hours each paycheck from the drop-down menu.

• Rate: The employee’s hourly rate.

• Default: The number of regular hours the employee works per pay period.

Select Save.

 

Verify Results

Once you’ve completed setup, verify that the employee’s hours and pay look correct using the Check Preview feature in Detail Entry before submitting your payroll.