Sometimes you might need to define what time-driven earnings reduce the auto pay amounts employees receive, if they have corresponding entries in their time and attendance records.
Dayforce can be configured so that certain time-driven earnings proportionately reduce the auto pay earnings employees receive.
For example, if the auto pay functionality determines that an employee earns $500 per pay period, but their time and attendance records contain $100 worth of vacation time that maps to the 'Vacation' earning, the application can be configured so that the auto pay amount is reduced by $100. The employee receives $400 in auto pay earnings and $100 in vacation earnings.
Configuring the application with earnings that reduce auto pay allows organizations to classify earnings appropriately; for example, a salaried employee earns $1,000 a week, regardless of the hours they work. Although the employee does not record their worked time through a timesheet, they do request time away from work through the application, which creates time and attendance records that are mapped to a vacation earning.
Regardless of whether or not the employee works or takes paid vacation, they are paid their salary of $1,000, but the vacation time needs to be recorded and tracked so that the appropriate balance is deducted and the vacation pay is classified with an appropriate earning both for reporting purposes and so that it appears on the employee's earnings statement as vacation pay.
To accomplish this requirement, configure the Auto Pay Rule so that the vacation earning reduces auto pay and map it to the vacation time and attendance records created by approved time away from work requests; that way, the vacation time and pay is properly tracked throughout the application but the employee's pay isn’t increased on weeks that they take vacation time.
Specify Earnings That Reduce Auto Pay
To specify which earnings reduce auto pay:
- Go to Payroll Setup > Payroll Policies.
- Select a payroll policy and then select the auto pay rule.
- In the Auto pay reduction earnings drop-down list, select the earning codes you want to add.
- Click Save, then click Refresh.