Help Administrators

Creating pay codes

Pay codes are labels used to identify pay rate multipliers – they allow you to apply pay rate multipliers to users' time. They are used in overtime rules and pay rules, time off types, and payroll calculations, and they display in the pay code summary in timesheets.

How pay codes are used in overtime rules and pay rules

Pay codes are used in overtime rules and pay rules to specify at what rate users should be paid for different categories of time worked.

For example, if you are using a California overtime rule or pay rule, you might create and assign the following pay codes:

Pay Code Name

Code

Rate Multiplier

In the Overtime Rule, assign to...

Regular

RT

1

Daily hours worked, less than or equal to 8

Overtime

OT

1.5

Daily hours worked, greater than 8, but less than 12

Double time

DT

2

Daily hours worked, greater than 12

Do not edit the Code field for the default pay codes. The codes are used for pay rule calculations.

How pay codes are used with time off

If you are using the new time off system, the user's pay rule determines which pay code is assigned to time off hours.

If you are using TimeAttend or TimeOff, you choose which pay code is associated to each time off type. The selected pay code specifies which pay multiplier applies to time off hours against that type.

Time off is typically paid at the user's regular rate (x1), but there are possible exceptions to this. For example, a company might need to pay employees double time (x2) for holidays that fall on a user’s regular day off. In this case, they could create a special time off type for use on those days, and apply the double time pay code to it.

Adding a pay code

To add a pay code:

  1. Go to Administration > Pay Codes and Policies > Pay Codes.
  2. Click Add Pay Code, and give the pay code a name.
  3. Select the factor regular pay should be multiplied by when that code is applied.
  4. Select the type of pay code – None, Overtime, Time Off.
  5. Click Save.

About the pay code types

Pay code type determines how the hours are classified. Set the type to Overtime if you want hours for this pay code to be classified as overtime. In this case, the hours will be included in the OVERTIME total in the hours summary bar on Standard and In/Out timesheets. They will also be included in the Total Overtime Hrs field in reports based on the Timesheet Period Details template.

If hours associated with the pay code are not considered overtime or the pay code will be used only in time off types, set the pay code type to None or Time Off, as applicable.

Setting the Regular Hours Pay Code

The regular hours pay code is used in all calculations involving regular hours (for example, in overtime calculations). By default, the Regular Time (x1) pay code is assigned to regular hours.

To change the pay code used for regular hours:

  1. Go to Administration > Pay Codes and Policies > Pay Codes.
  2. Click the link in Pay Code for Regular Hour is…, at the top of the page.
  3. In the dialog that displays, select a new pay code from the drop-down field.
  4. Click Save.

Related links

Using Replicon for payroll and attendance tracking
How payroll works
Running payroll reports
How is pay calculated?
Setting up pay rules

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