Setup Sick / Vacation Payroll Item for Salary Employees

Salaried employees do not require the use of the weekly time sheet since the system will automatically default the Hours and Salary rate based on the employee's set up. The weekly time sheet is only applicable for tracking PTO and sick time. The system has different treatment in recording PTO for salaried employees depending on the setup.

Example:

An employee receives a pay of $1,000.00 and is paid every week. The employee used 8 hours of PTO/Sick and time was entered through the weekly time sheet.

 

Note:

Make sure that a Default Hours was set to the Salary Payroll item. 

    - Navigate to Lists> Employees> Employees.
    -  Edit the Employee record.
    - Click on the Payroll tab> Earnings.
    - Enter the Default Hours for Salary payroll item. 
    - Click on Add and Save the record.

Scenario 1: If the PTO/Sick payroll item has no Monetary Rate. 

Result 1: The employee will still receive total earnings of $1000.00 however, the system will not automatically update the hours for the Salary and PTO as shown below:

 

 

 

Note:

1.     Payroll reports will still show the correct Net Pay however, the entire amount will be recorded under Salary and no amount for PTO.

2.     Payroll reports will show incorrect Time since the PTO hours will be added on top of the regular Salary hours.

3.     To correct the hours, edit the paycheck before committing and reduce the Salary hours by the total PTO hours used.

 

- This can be done by navigating to Transactions> Employees> Create Payroll> Lists.

- View the Payroll Batch.

- Click on the Paychecks tab.

- Edit the paycheck.

- Modify the Salary Hours to reduce by the PTO hours.

- Save the record.

- Click on the Calculate Taxes button and Commit the payroll.

 

Scenario 2: If the PTO/Sick payroll item has a Monetary Rate. 

Result 2: The employee will still receive total earnings of $1000.00. The system will automatically update the Hours and Amount for both Salary and PTO payroll items.

 

 

 

Note:

1.     Payroll reports will show correct hours and amounts for both Salary and PTO payroll Items.

2.     The Monetary Rate for PTO needs to be calculated manually.

 

    - Navigate to Lists> Employees> Employees.

    - Edit the Employee record.

    - Click on the Payroll tab> Accrued Time.

    - Enter the Monetary rate for PTO.

    - Click on Add and Save the record.