Before You Begin: Pay codes can be used to support a wide range of functionality in the application, and this section outlines only the steps that are necessary to support overtime banking.
Overtime banking increments a benefit balance, rather than paying employees at a higher overtime rate, when they work beyond overtime thresholds. The first step in configuring overtime banking involves configuring appropriate pay codes. Pay codes indicate what an employee was doing for a particular segment of time. You create pay codes in Pay Setup > Pay Code.
Pay codes can have a number of attributes selected, such as Is Increment and Is TAFW, which provide additional descriptions of time marked with the code. These attributes also influence how the application treats the time. To set up Dayforce for overtime banking, the following pay codes must be configured:
- At least one pay code marked as incremental and time away from work.
- A pay code to deposit balances into.
- A pay code for the associated withdrawals.