This document will assist in creating contract specific rates and calculations to specific Contracts.

Knowledge or COINS payroll configuration is required.

Payroll > Global Setup > Pay Items

Pay items are used to hold Gross Pay, Net Pay, computed values used in Payroll, such as Withholding, as well as to create a user-determined Gross Pay Amount used for other computations. Pay items used must be included in any sequence associated with a Payroll run.

When creating a new Pay Item you can either Add or Copy an existing. If there are, any Pay Items that work in a similar way in which you require the new pay component to function it may be easier to copy and modify the record rather than adding a new pay Item.

When used in Australian Payroll, Pay Item Effects are currently limited to Add and Subtract only. Since pay items are shared among all Payroll companies, you must consider the setup and maintenance of pay items. Changes can produce unwanted effects. Additionally, if pay items are added, you need to review sequences to see if they need to be modified to include new pay items.

Create a new pay item to reflect the requirements for the specific oncost. Considerations of the costing requirements must be entered here against the pay item.

While Pay Items can be created in any order, their appearance in a sequence must follow payroll logic. For example, we must know an employee's Gross before we can calculate the Employee Tax. While a standard sequence will be included in SureStart, it is important to understand how to create and modify a sequence.

You can use the Item Sequences function to set up pay item sequences, which are the building blocks of pay items. They control the items that appear on each employee's timesheet and are used in their Payroll calculation.

When the pay calculation is performed, the program works through a sequence of pay items in order to calculate the pay. Generally, the sequence will not be changed but if you add a new Earning Category or Pay Calculation, you must ensure it has a corresponding Pay Item and ensure this is in the Pay Sequence or it will not be included in the calculation.

Insert the new Pay Item to the ‘AUS On-cost’ sequence

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

Each employee’s pay components and rates can come from their contract, award, or be set as standard on their employee record.

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.

Create new Pay Calculation – Fringe not included in Pay

If you wish to expense costs to a GL account other than the one prescribed on the cost code, you will need to set up the components of your Total Pay Item to allow for additional postings. All of the standard components of payroll, such as taxes and workers comp, can be configured to post to unique GL accounts. Additionally, Employer provided expenses such as Super Guarantee and Oncost can be configured to post to individual sub accounts.

On the Pay Item that represents Super Guarantee set your Liability account with subaccount as the generic i.e. TOTAL or GEN

Set Additional Posts to 2, and complete the Additional Postings to create a GL based Credit entry, with the default cost order as P and the GL account masked to Direct Labor Oncost. Create Debit entry to the appropriate expense account for the Pay Item with subaccount SUPER.

When the Calculation is run, the full value of Burdened Labor will be shown in the GL Account defined on the transaction's cost code. A Credit offset will be created to the same GL Account with new subaccount, and Debit will be created to the appropriate GL Account representing this component of Labor with new subaccount.

Using this method will allow for various employer provided Fringe Benefits to post to separate expense accounts rather than posting to a single bucket. Aide in GL reconciliation and will provide greater auditability/traceability.

Payroll > Global Setup > AUS specifics > Contracts

Contracts allows you to add rates and calculations specifically to a contract. Rates can be specific to a trade and a skill.

Drill into the contract to display additional tabs. By using (*) wild card you can cover all Trades and Skill and assign rates to all who have timecards costed to the contract for the specific earning category

Contract Calculations: allows you to set calculations for a specific Trade and skill

Contract Rates: allows you allocate specific earning category rates to specific trades and/or skills.

Add new calculation specific to the contract.

Trade - enter the trade/commodity code or wildcard

Calc No - enter the number for a specific calculation – will always start with 1

Effective Date - Date in which the rates will commence from. The date can be used to set up future rates. The latest rates is automatically used with the date applicable to the timecard date.

Description - description of the calculation – free text

Fringe or Deduction - Whether this is a fringe or deduction calculation

Group – Contract group can be left blank

Percentage- The percentage of the calculation if applicable

Flat amount - Flat amount if applicable

Rate per day - daily rate if not flat amounts or percentage of the gross amount

Amount per regular hour - The calculation as an amount per regular hour

Amount per OT hour - The calculation as an amount per overtime hours

Amount per DT hour - The calculation as an amount per DT hours

Pay Item - Enter the pay item number

Once the calculation has been saved drill into the Calc No field, this will open the Contract calculation summary.

Assign a Skill level to be used in the calculation or use the wildcard to cover all skill levels

Allows you the ability to assign specific rates based on Trade and Skill for earning categories.

Trade - enter the trade/commodity code or wildcard

Skill Level - enter the skill level code or wildcard

Earning Category - Allocate the earning category for the contract

Autoflow - Indicator if the contract rate will auto flow to the timecard when a timesheet are created.

Effective Date - Date in which the rates will commence from. The date can be used to set up future rates. The latest rates is automatically used with the date applicable to the timecard date

Regular Rate or amount - the contract regular rate or amount to be used for the earing category

Entering and maintaining up to date employee records is a crucial process in calculating a payroll, for the employees to be paid and to be aware of their allowances.

Each employee will be assigned:

Defines the default information for the company

Payroll > Company Setup > Company configuration

Coins allows you to define timesheet defaults for obtaining the rates for an employee timecard.

The ‘Default Rate From’ allows you to define in what order will COINS obtain the rate.

Greater of Contract/Union/Employee

Or

Order of Contract/Union/Employee

When a timesheet is created for an employee that has costing analysis assigned to the contract and the employee skill/trade match the contract calculations, these rates will be used in the timecard.

MEAL is using the contract rate from the contract summary of $16 as it is to apply to all Trades and Skills.

ORD is using the contract rate for the earning category on the contract summary of $85 for regular rate. This is because the employee record matches the skill and trade allocated to the rate on the contract rates.

Once the payrun has been calculated navigate to Period Maintenance to drill into the Period.

The ‘Burden Detail’ Tab will display the Contract Fringes for individuals

The contract calculation detail Tab will display all employees that have had the calculation applied.

The contract calculation is 20% of the Gross (3246 * 20% = 649.20)

Once the payroll has been posted transactions will be submitted to contract.

Total amount costed to contract is $4532.72

Which equates to Gross wages + all oncost [HOLA,LSLA,SICA,SUPG,WC,PTAX and the contract calculation coded as OCR]