Pay Items are records that contain information about how an entry on an employee payslip is calculated. Pay items can hold hours and dollars, be used in the calculation of other values, determine what appears on a payslip and where it appears, and can be used to determine what GL accounts are used during the payroll process.

Pay Items are not Company specific and must be included in a sequence which in then associated with selected employees. Pay items are associated with Earning Categories for wages, Pay Calculations for fringes and deductions.

Current pay items for leave costed to a specific GL.

An Earning category is an item of income that makes up an employee’s pay. Earning Categories summarise types of pay into categories which can then be reported on and also allows for different methods of payment.

You will also define if the earning category is taxable, have super payable and where is appears on the payment summary. If oncost are to be calculate when used how this calculation occurs is define against each earning category. An earning category must have a corresponding Pay Item, or it will not be processed in the pay run.

Eg. HOL – Annual Leave

Apportion oncost for an earning category can occur in three methods.

Default cost code refers to what cost method is used for the earning category when processed via timesheets.

4. None - no costing

5. Employee - will use the default costing assigned to the employee on the ‘Employee Maintenance’ form

6. Employee GL - will use the GL assigned to the employee on the ‘Employee Maintenance’ form

7. Pay Item - will use the costing method assign to the Pay Item

When a timesheet entry is completed for the Earning Category, COINs will refer to the configuration to establish how the cost is assigned.

Once a payrun is calculated, the transactions associated with an employee timecard are visible in the costing workbench.

All oncost associated to an earning category are costed as per the configuration define against that particular earning category.

Using sub accounts on the debit entry for the oncost allows for reconciliation of all oncost which fall part of the total burden cost to GL.

All of the Pay Items associated with the cost of Labor are rolled up into a single pay item, defined as Total Burdened and Allocated Costs, for expense purposes. When posting to Contract Status or the General Ledger, costs are summarised at the Analysis (Contract or GL) level for each payroll period for each Unit (hour) measured.

All earnings, employer burdens, payroll tax, and workers comp are rolled up into a single Pay Item 767. The costing will be a DEBIT to accrue the expenses. The General Ledger entry will come from the cost code portion of contract analysis entered on each timecard.

The only change to an earning category for this option would be to the default cost as the Pay Item holds no costing therefore setting the default cost to ‘Employee’.

Apportion cost will remain as Timecard as all oncost will be apportioned as per what is entered on an employee’s timesheet

All employees will hold Default costing against their individual record. All defaults can be overridden on a timesheet entry.

When a timesheet entry is completed for the Earning Category, COINs will refer to the configuration to establish how the cost is assigned.

Once a payrun is calculated, the transactions associated with an employee timecard are visible in the costing workbench.

All oncost associated to an earning category are costed as per the configuration define against that particular earning category, in this example costed to the contract C1.22000

COINs can calculated all leave accrual cost associated with an employee. Surestart configuration will have rules defined for Annual Leave, Long Service Leave and Sick Leave.

COINs standard calculation is as follows:

Employee hourly rate in COINs: 32.73

Accrual Rate for leave: HOL 0.076923

LSL 0.016667

SIC 0.038462

Hours worked in one week 38

Pay calculations define deductions from an employee’s individual pay or an oncost calculation on a pay.

On a pay calculation, you can define the method of calculation, the rate or amount, the maximum amount to deduct, where it appears on a payment summary and whether it is taxable.

COINs has the ability to assign an inflated percentage to increase the provision for leave to accommodation on cost being costed to the provision account during postings.

Once a payrun is calculated, the provision can be viewed in the costing workbench or on the individual employee timecard.

The below example displays the new inflated HOLA dollar value which will be credited to the provisional account.

All the Pay Items associated with the cost of Labour are rolled up into a single pay item, defined as Total Burdened and Allocated Costs, for expense purposes. When posting to Contract Status or the General Ledger, costs are summarised at the Analysis (Contract or GL) level for each payroll period for each Unit (hour) measured.

All earnings, employer burdens, payroll tax, and workers comp are rolled up into a single Pay Item 767. The costing will be a DEBIT to accrue the expenses. The General Ledger entry will come from the cost code portion of contract analysis entered on each timecard.

There are oncost that are not required to be apportioned across the timecards and costed against all contracts or GL. For example oncost only to a specific employee for a specific reason. E.g. ICT or Rental Bonds

Pay calculations define deductions from an employee’s individual pay or an oncost calculation on a pay.

On a pay calculation, you can define the method of calculation, the rate or amount, the maximum amount to deduct, where it appears on a payment summary and whether it is taxable.

COINs has the ability to assign a flat rate on a Fringe not included in pay for cost being costed to the provision account during postings.

To ensure the oncost is not including in the apportioning across employee timecards there is a tickbox to exclude the Fringe from being included in the calculations.

The individual oncost can be allocated to an employee on their master record which will be populated once the timecard is generated.

Once the calculation process has occurred there is the ability to view the employee pay details via the period maintenance.

To establish if the oncost is NOT being apportion the employee normal pay without BONDFO has the following oncost

The report will allow you to view the complete break down of employee pay and see the Fringe not included with other oncost.

Surestart provisions for Annual Leave, Sick Leave and LSL are configured to accrue and credit a specific provision account. When entitlements are paid to employee via a timecard, these will debit the provision account. However, oncost are calculated on leave taken therefore reducing the provision account by all oncost associated to leave thus resulting in the taken amount to be greater than what was accrued in the provision account.

To allow for the accrual of oncost on leave types when the leaves are being accrued, a parameter will need to be configured. The parameter must contain the leave types that need to accrue additional oncost to compensation for reconciliation of accounts.

PR > Global Setup > Parameters

The above would indicate that that when the leaves HOL, SIC and LSL are being accrued, the oncosts that normally occur when they are “TAKEN” needs to be “calculated” and added to this LEAVE Type and the “debit” side to go to the “other contracts or timecards” on the timesheet when this LEAVE is being accrued

All the Pay Items associated with the cost of Labour are rolled up into a single pay item, defined as Total Burdened and Allocated Costs, for expense purposes. When posting to Contract Status or the General Ledger, costs are summarised at the Analysis (Contract or GL) level for each payroll period for each Unit (hour) measured.

All earnings, employer burdens, payroll tax, and workers comp are rolled up into a single Pay Item 767. The costing will be a DEBIT to accrue the expenses. The General Ledger entry will come from the cost code portion of contract analysis entered on each timecard.

Surestart leave taken and leave accrued will be costed to specific provision accounts for the specific leave

An earning category that has the costing configuration on the Pay Item to debit a provision account will have “suppress GL posting” selected. This is because the total burden (767) has the full cost of the transaction to the contract or general.

Once a payrun is calculated, the transactions associated with an employee timecard are visible in the costing workbench.

All oncost associated to an earning category are costed as per the configuration define against that particular earning category.

Total CR 4114.04

Total DR 4114.04

The oncost for the leave accrual is calculated by using employee base rate X employee hours per pay period X the accrual rate for the benefit.

Leave hours accrued for employee are calculated using leave accrual rate for the benefit * the hours for the period.

Employee Component Report

When a timecard is calculated using the accrual hour rate for the benefit type the debit entry for the oncost should reconcile back to the extra accrual being credited to the provision account.

Timecard entered for LSL 0.66692 hours

LSLA 0.89

Extra oncost being shown on the employee component report 0.89

HOLA - Timecard entered for HOL 3.07692 (TIMECARD ROUNDS TO 3.08, UNABLE TO CHANGE THIS)

HOLA 18.95

Extra oncost being shown on the employee component report 18.93 (Variation .02)

SICA -Timecard entered for SIC 1.536 (AGAIN TIMECARD ROUNGS TO 1.54, UNABLE TO CHANGE THIS)

SICA 4.73

Extra oncost being shown on the employee component report 4.72 (Variation 0.01).