Pay Codes

Pay codes represent what an employee was doing for a particular segment of time. You can create pay codes in Pay Setup. Each pay code is linked to a pay category which dictates how Dayforce pays employees for the time.

You can configure pay codes with a number of different attributes that affect how Dayforce mark segments of time. These attributes also influence how Dayforce treats the time. For example, when you select Is Absence, the pay code appears on attendance reports, indicating when an employee was absent through the year. When you select Is Pay Adjustment, the pay code is available to managers when they add pay adjustments to an employee’s timesheet.

Before You Begin: Pay codes are used throughout Dayforce to support a wide range of functionality that isn’t fully described here.

To configure a pay code:

1. Go to Pay Setup > Pay Code and click Add.
2. Enter a name and, optionally, a description for the pay code.
3. In the Pay Category drop-down list, select a pay category for the pay code. Pay categories dictate how employees are paid for their time. By default, Dayforce pays employees according to the pay code’s pay category.
4. Select any of the following checkboxes:
   • Is Pay Adjustment: Managers can select these pay codes when they create pay adjustments on the timesheet.
   • Is Shift: These pay codes are available in the drop-down list when adding or editing worked shifts.
   • Is TAFW: These pay codes mark time away from work, such as time employees spent on vacation, off sick, or on personal days.
   • Is Accrual: These pay codes are used in the accruals system.
   • Note: Pay codes can still affect employee balances, regardless of whether you select this checkbox.
   • Is Increment: These pay codes are used to increment employee balances, and are typically unpaid. To increment balances, pay codes with the Is Increment setting enabled need to be associated with balances in Pay Setup > Balances.
   • Is Absence: These pay codes mark absences. Any time marked with an Is Absence pay code shows up on the employee’s attendance calendar as an absence.
   • Is Excused: These pay codes mark approved exceptions (time an employee didn't work as scheduled, but that a manager already reviewed).
   • Is Exception: These pay codes mark time an employee didn’t work as scheduled. Exceptions are highlighted for manager review on the timesheet. Dayforce shows pay codes with the Is Exception checkbox selected on the attendance calendar in the Work > Attendance screen of People.
   • Is Resolution: These pay codes mark resolved periods where an employee was tardy. When an employee is assigned a tardy pay code and the tardy occurrence is resolved by a manager or supervisor, Dayforce changes the tardy pay code to a resolution pay code.
   • Note: Pay codes with this checkbox enabled require tardy processing configuration in Dayforce.
   • Is Scheduled: These pay codes are available for selection in the Add Schedule and Edit Schedule dialog boxes of Schedules.
   • Is Training: These pay codes mark time spent in training.
   • Is Schedule KPI: These pay codes mark time that contribute to the scheduled labor hours and cost values in Plan.
   • Is Actual KPI: These pay codes mark time that contribute to the actual labor hours and cost values in Plan.
   • Include On Schedule Report: These pay codes mark time that Dayforce includes on schedule reports.
   • Is Controllable: These pay codes are marked as “Is Controllable” in supported Dayforce reports.
   • Is Indirect: These pay codes are excluded from Dayforce’s calculation process which automatically converts amount-based pay adjustments to premiums before calculating changes based on your pay rule configuration. When this checkbox is selected for pay codes, you must run the Is Indirect Pay Adjustment Rule to convert the pay adjustments associated with your Is Indirect pay codes to premiums.
   • Is Read Only: These are pay codes that users can't assign on timesheets.
   • Sum In Timesheet: These are pay codes for pay adjustment hours that Dayforce includes when it sums total hours on timesheets.
   • Note: By default, Dayforce includes all time, regardless of pay code, in the total hours on timesheets. However, it only includes pay adjustments in this calculation if the pay adjustment uses a pay code with this checkbox selected.
   • Is Workflow: These pay codes are available for selection in workflow forms in Dayforce.
   • IsPPACA: These pay codes mark hours included in the PPACA eligibility calculation for PPACA calendars that are configured to derive employee hours from WFM records. See PPACA Setup.
   • Is Schdld Hrs Total: These pay codes are for pay adjustments that should be included in the Totals for Week column in the Grid View of Schedules even though they don't represent hours actually worked.
   • Is Complementary Hour: These pay codes mark complementary hours worked by employees on work contracts.
   • Is Anonymized: If the Is TAFW checkbox is selected, select this checkbox to make the time away code anonymous when shown in Multi-Week Calendar and Schedules.
5. In the Resolution Code drop-down list, select the pay code used to mark approved late or early start or end times. This is used by Dayforce’s tardy functionality. Dayforce marks when employees arrive to, or leave, work early or late, with specific pay codes and highlights the times as exceptions on the timesheet.
6. Using the timesheet, managers review these exceptions. If they approve or authorize the exception, Dayforce automatically inserts the pay code’s corresponding Resolution Code on the timesheet. For this configuration, only select a Resolution Code for the pay codes that are used by the time entry policy to mark when employees are late or early. For example, if the “LL” pay code is used to mark when employees leave up to 30 minutes late, then for the LL pay code’s configuration you’d select the Resolution Code used to mark that a manager has seen that the employee left late, and approved it. By selecting pay codes that are either paid or unpaid, you can configure Dayforce to switch from an unpaid pay code, for unapproved or unresolved late or early starts, to a paid Resolution Code. That way, if a manager doesn’t approve when employees arrive to work late, they aren’t paid for the time. But if they do, because the employee had a legitimate reason, Dayforce inserts the Resolution Code and the employee is paid for the time. The pay codes used, and what amount of time is considered late or early, is set in the employee’s time entry policy. See Time Entry Policies.
6. Select the pay code’s default labor metrics by making a selection in the Department, Job, or Job Assignment drop-down lists. Labor metrics describe how an employee’s labor was spent, by recording worked time against specific departments, jobs, or job assignments.
7. (Optional) In the Hours KPI drop-down list, select a time-based KPI to associate with the pay code.
8. (Optional) In the Amount KPI drop-down list, select an amount-based KPI to associate with the pay code.
9. Enter the pay code’s relative position in the Sort Order field.
10. A pay code’s sort order is used when it’s shown in Dayforce, typically in drop-down lists. Dayforce shows the pay codes according to their sort order values, so that a pay code with the sort order 5 is shown after 4 and before 6.
10. (Optional) In the Image Path drop-down list, select an image to represent the pay code.
11. The main use of pay code images is in Schedules, when approved time away requests show the corresponding TAFW pay code’s image, marking when employees have time away from work.
11. Select what type of pay adjustments users can create using the pay code in the Time/Amount Entry Mode drop-down list. Only relevant if the pay code is configured with the Is Pay Adjustment checkbox selected, Dayforce can be configured to limit the type of pay adjustments (either based on hours or dollar amounts) users can create in Timesheets based on the configuration of the associated pay code. For example, pay adjustments that represent commission bonuses can be limited so that users can only create them with a dollar amount.
12. Any pay code can be configured with one of the following options:
    • Amount Only: Pay adjustments can only be in dollar amounts.
    • Time and Amount: Pay adjustments can either be hours-based or in dollar amounts.
    • Time Only: Pay adjustments can only be hours-based.
13. For example, with the Benefit pay code configured in Pay Setup > Pay Code with Time Only selected in the Time/Amount Entry Mode drop-down list, Dayforce limits the type of pay adjustments created with the Benefit pay code selected to Hours. The Amount option isn't available in the drop-down list shown when creating or editing pay adjustments in Timesheets:
14. 
15. Note: When configuring pay adjustments to be limited to either hours-based or dollar amounts, Dayforce preserves any previously created pay adjustments to be either hours-based or a dollar amount, even if the associated pay code now limits them to one or the other. For example, an hours-based pay adjustment was created last week and today the administrator configures the associated pay code with Amount Only selected in the Time/Amount Entry Mode drop-down list, Dayforce preserves the pay adjustment created last week to be an hours-based pay adjustment. Only pay adjustments created after the configuration was performed are limited to dollar amounts.
12. (Optional) Select a color for the pay code in the Color Code drop-down list to customize how absences are reflected in attendance calendars in Work > Attendance (Year at a Glance) and in the Work > Attendance screen of People.
13. Important: This applies only to pay codes configured with the Is Absence checkbox selected. Time and attendance information that’s associated with pay codes that aren’t configured with the Is Absence setting doesn’t appear in attendance calendars.
13. (Optional) Enter a single-letter code to represent the pay code in the Short Code field. Short codes can be shown on some reports.
14. (Optional) Enter a cross-reference code in the Reference Code field. This code must be unique and must not contain special characters.
15. Click Save.