Pay adjustments are another method that you can use to correct your employee’s time and attendance records or their pay. Pay adjustments cover two general categories:
- Paying out benefits, bonuses, or premiums. You can pay an employee a lump sum, either in dollars or hours, to cover commission pay, quarterly bonuses, or vacation balance payouts.
- Accounting for absences. You can cover unworked, scheduled time with a pay adjustment that uses an employee’s sick or vacation time to account for the absent time. The employee is paid according to their benefits—if sick days are paid at their regular rate, for example, the employee is paid for the shift.
Note: The Add New Pay Adjustments button isn’t shown on the timesheet if the user assigning the pay adjustment doesn’t have access to any of the pay adjustments the employee can be assigned. By default, users can assign any pay adjustment and every employee can be assigned any pay adjustment. Pay adjustments are restricted only if Dayforce is configured to do so. For more information, contact your system administrator.
The following examples illustrate some scenarios you can cover by making a pay adjustment in the Timesheets feature.
| Example Scenario | Description |
|---|---|
| Annual bonus |
Employees can earn an annual bonus, depending on the organization’s performance and their reviews. At the close of every fiscal year, for the employees that earned a bonus, managers make pay adjustments to pay these bonuses. Because the bonus is paid as a lump sum of $1,000, the manager adds a $1,000 pay adjustment on the timesheet for employees who earned the bonus. |
| FLSA overtime adjustment |
Depending on your requirements, your employees might be eligible for overtime adjustments based on bonuses earned for past pay periods. In these scenarios, bonuses earned for past pay periods might affect the employee’s regular rate of pay at the time the bonus was earned. This might also affect the rate at which they were paid for any overtime worked in the same period. The employee is entitled to any earnings discrepancy through an overtime pay adjustment. Dayforce contains functionality that awards these adjustments automatically. However, depending on how your instance of Dayforce is configured, you might have to add these pay adjustments manually and mark them accordingly. When adding such overtime pay adjustments, you specify your FLSA adjustment period (that is, the period in which the bonus was earned) using the Period Start Date and Period End Date fields. |
| Using vacation days in lieu | An employee was absent last Friday. They decide to use a vacation day to cover the absence. The manager adds a vacation pay adjustment on the timesheet for the day the employee was absent. This way, the employee is paid for the shift and the absence is accounted for on the timesheet. |
| Weekly sales contest | Every week, the employee with the highest sales in each department is paid a bonus. The bonus is paid at the employee’s regular rate, for 5 hours. To support this scenario, the manager adds a 5-hour pay adjustment on the timesheet for the employee who won the sales contest. |
These common scenarios are covered by making different types of pay adjustments in Timesheets.