HR & Payroll Setup

HR & Payroll – Setup *

Configuration settings:

  • Payroll Rules
  • Time tracking or “punch” rules
  • Tardy policies
  • Employee Schedules
  • Employee Work Groups
  • Customizing employee records
  • Paid time off accrual rules
  • Payroll burden
  • Activity based compensation
  • Worker’s compensation methods and rates
  • Prevailing wage options

Most of the configuration settings described here will require access to the Administrate menu and then the Setup Wizard menu choice.

Payroll Rules *

Requires: Job Cost & Analysis Module    

Payroll rules are used to determine how compensation is to be calculated for payroll purposes. The system automatically creates two payroll rules named Exempt and Nonexempt. You may create as many named rules as desired. Every employee must be assigned to a payroll rule.

First day of the payroll week

The first day of the payroll week (FDOW) determines the starting day for determining the calculation of weekly overtime. This setting also establishes the beginning day for displaying weekly views of the payroll period.

Access this rule using the Setup Wizard, Time & Payroll Tab, and First Day of Payroll Week.

Rules that pay OT

The term “nonexempt” is often used to describe employees who may earn overtime. The rules for earning overtime are usually determined by the governing authority. In some states employee must be paid overtime for hours worked beyond 8 hours in a day. In other states there may only be a rule for weekly overtime. Additionally, some companies vary regarding the inclusion of vacation and holiday hours toward a weekly overtime threshold.

TracManager Nonexempt payroll rule settings determine:

  • When overtime is paid
  • If paid time off such as vacation, holiday hour are included in the OT threshold
  • If a shift premium is paid for hours worked after or before a specified time
  • If automatic lunch is enabled
  • If lunch break is paid or unpaid time

Set the payroll rules as desired. Create as many named payroll rules as needed.

You may configure the payroll rules from the Time & Payroll Tab, Setup folder or using the Setup Wizard, Time & Payroll Tab, and Payroll Rules

Click here for step-by-step instructions on how to create the payroll rules.

Rules that do NOT pay OT

The term “exempt” is often used to describe employees who is exempt from earning overtime. These employees may be salaried.

TracManager Exempt payroll rule settings determine:

  • If automatic lunch is enabled
  • If lunch break is paid or unpaid time
  • How payroll hours are recorded. A choice of actual hours worked, or nominal 8 hours. This allows the payroll system to pay the employee a salary or amount per day regardless of actual hours worked.
  • How job cost is recorded. A choice of actual cost of the hours worked which is proportionately calculated or based on the nominal hourly rate

Set the exempt payroll rules as desired. Create as many named rules as needed.

You may configure the payroll rules from the Time & Payroll Tab, Setup folder or using the Setup Wizard, Time & Payroll Tab, and Payroll Rules

Click here for step-by-step instructions on how to create the payroll rules.

Time Tracking Rules *

Time tracking rules determine how time clock punches are interpreted. Configure the time tracking rules from the Setup Wizard

Time Precision

Time is tracked by the hour and not by the minute. All time tracking precision is set to one of three choices: by the hundredth of an hour (0.01) or every 36 seconds, the five hundredths of an hour (0.05) or every 3 minutes or the tenth of an hour (0.1) every six minutes. The standard setting is every 3 minutes. If the setting is every 3 minutes that would mean that a time punch of 6:01:29 would be snapped to 6:00 and 6:01:30 would be snapped to 6:03.

The time tracking time snaps used for beginning and ending a work period are often snapped to an increment of 15 minutes. The times within the work period (job times) are allowed to snap to the smaller time granule.

Recommended setting: 0.05 which allows for 15 minute increments as well as sufficient job level tracking accuracy. In most cases 0.01 is too small (36 seconds) and 0.1 breaks at the 6 minute increment.

You may configure this rule using the Setup Wizard, Time & Payroll Tab, and Time Precision.

Early Clock in (Out of Schedule)

If an employee clocks in a few minutes before scheduled time – should the time punch be moved forward to the starting time? The answer depends on the company policy. TracManager supports rules that will adjust the starting and ending punches for small fractional time to force the time punches to snap to a desired time punch. For example, you may configure the rules to snap an early punch forward to the next fifteen minutes such as clocking in at 5:53 and moving the actual clock in to 6:00.

You may configure the payroll rules from the Setup Wizard, Time & Payroll Tab, and Out-of-Schedule Policies.

Late Clock in

Although this is not a commonly used rule, a snap to schedule setting will allow an employee to clock in late and have the start time adjusted back to the on-time starting time if within specified parameters. This rule is located on the Out of Schedule Policies form.

The purpose of this rule is to compensate for the time it may take for employees to walk to the data capture station after arriving on time.

You may configure the payroll rules from the Setup Wizard, Time & Payroll Tab, and Out-of-Schedule Policies.

Also see tardy policies below for late clock in and early clock out within schedule.

Shift Date

If employees work across the midnight hour, their time sheet will include time punches that span across two dates. The “shift date” that the time sheet is associated with may is determined by configuration setting. Example: an employee that clocks in on a Monday after 10pm and clocks on out Tuesday at 6am. The configuration rule determines which day the time sheet is set to.

You may configure this rule using the Setup Wizard, Time & Payroll Tab, and Shift Date Rule.

Tardy Policies *

When employee clocks in later than their scheduled time or departs earlier than their scheduled time a tardy policy may be used to determine how this time and event is handled.

When initially starting the system you may want to defer implementing a tardy policy until adoption of the new system is well established.

Late Arrival or Early Departure

A tardy policy may be created that will assign track the occurrence and make adjustment to start time consistent with company policy. For example if an employee is scheduled to begin work at 7:00 and actually clocks in at 7:06 the clock in time could be adjusted forward to the next 15 minutes (7:15) and the time from 7:00 to 7:15 would be charged to an unpaid “tardy job”. Reports would be available indicating the number of tardy events as well as the amount of time tardy. A similar policy applies to early departure.

You may configure this rule using the Setup Wizard, Time & Payroll Tab, and Tardy Policy. For more help click here.

Employee Schedules *

Requires: Job Cost & Analysis Module    

All employees are assigned to a schedule. The schedule indicates the starting and ending times for each day of the week that the employee normally works. The schedule also includes the normal time and duration of the lunch break. This information is required to support automatic lunch if enabled. Additionally, the employee schedule informs the Scheduling Module when employees are normally available for work (if applicable).

Employee schedules may also be used to adjust the arrival and departure time punches.

Click here for help on how to create employee schedules.

Employee Work Groups *

Requires: Job Cost & Analysis Module    

All employees are assigned to a work group. The work group determines what jobs and activities appear on the employee help lists. The members of a work group should all do the same type of work. Create as many work groups as necessary.

Click here for help on how to create employee work groups.

Customizing Employee Records *

Requires: Job Cost & Analysis Module    

If desired, the employee records may be customized to provide user defined information. For example if you wanted to rack the employee’s birthday, spouses name or emergency contact information you could use the custom fields for this purpose.

To learn more about customizing employee records click here.

Paid time off accrual *

Requires: Job Cost & Analysis Module    

TracManager may be configured to accrue paid time off hours per company policy. Hours may be accrued based upon the hours worked per week.

To learn more about configuring paid time off accrual click here.

Payroll Burden *

Requires: Job Cost & Analysis Module

All job labor costs are recorded with a labor burden. The labor burden is the employer’s contribution for all payroll taxes and costs including FICA etc. The burden is expressed as a percentage. The burden does not include the worker’s compensation insurance cost which is handled separately.

To learn more about configuring payroll burden click here.

Activity-based Compensation *

Requires: Job Cost & Analysis Module    

TracManager may be configured to track hours and adjust compensation based upon the labor activity of the time sheet.

To learn more about configuring activity-based compensation click here.

Worker’s Compensation Insurance *

Requires: Job Cost & Analysis Module                    

When an employee time sheet is approved the job labor costs are recorded including the labor burden and the associated worker’s compensation cost.

There are two methods for determining the worker’s compensation cost.

The most common method is the “by employee” method which means that all of the employee’s hours are associated with a specific risk category and rate.

The second method is “by activity” which means that all labor hours charged to an activity are associated with a specific risk category and rate.

First determine which method reflects the way you need to report. Then create the individual risk category rates and associate the appropriate rate with the employee or activity.

To learn more about configuring worker’s compensation insurance rates click here.

Prevailing Wage *

Requires: Job Cost & Analysis Module                    

TracManager supports tracking time and cost associated with a prevailing wage job.

To learn more about configuring prevailing wage jobs and rates click here.