Process time off in lieu and banked time off in lieu
Before you can process time off in lieu and banked time off in lieu, you must perform some setup. For information about how to set up time off in lieu and banked time off in lieu, see Set up time off in lieu and banked time off in lieu.
When in lieu hours are loaded into the compensation journal from both employee scheduling and time entry pages, the hours must be processed with the following requirements:
Do not pay the hours to the employee. Force a multiplier of 0.
Do not send the hours to the external payroll provider. When the source record contains a non-blank value for In Lieu Code, Sparkrock 365 does not send the hours to the external payroll provider.
Do not count the hours as worked because the hours are processed when the time off is used. This action prevents the hours from being double counted. Double counting is solved by two records, one with positive hours and one with negative hours.
Upon posting of the compensation journal, create the accrual entry in the Employee Absence page with a positive sign.
Use the Use Multiplier for Comp. Hrs. field to determine whether the quantity included in the created employee absence record uses the multiplier passed in from the employee scheduling or time entry systems. If Use Multiplier for Comp. Hrs. is clear, use 1.0.
When processing time off in lieu, Sparkrock 365 creates two lines in the compensation journal, one for the hours worked that has a positive sign and the other for the hours stored that has a negative sign. This design ensures that the hours worked is 0 in the net transaction. Both lines must have an amount of 0 and not impact the financial side of payroll, and the general ledger. The two lines are saved in the compensation ledger, which creates an audit trail of the hours stored.
When the employee processes an absence request from the stored hours cause of absence, Sparkrock 365 uses the HR pay code that is associated with the cause of absence record. If a user has regular, overtime, and double-time hours, three separate cause of absence records are created so that each record can have the correct HR pay code associated with the record. This design ensures that the correct multiplier is used. If multiple cause of absence records are used, multiple schedule unit activities, time entry unit activities, or both are created. Those who are responsible for performing time entry must be aware of the additional activities for saving time in lieu.
Example usage scenarios
The following scenarios use Time Entry Unit Activities and Time Entry Unit Position Activities.
Book time to Lieu Time that will be immediately paid out: In this scenario, an employee works an extra hour on Wednesday and is paid time and a half for that one hour. No time is banked for future use. The time is paid when earned.
Book time to Lieu Time that will be banked for future use: In this scenario, an employee works an extra hour on Wednesday and takes 1.5 hours off the following Friday. No earnings are recorded for the Wednesday work, but 1.5 hours go into the LIEU cause of absence for future use. When the employee takes the time the following Friday, the 1.5 hours is paid at straight time.
Book hours that will be recorded at 1.0 to Lieu Time to be banked for future use, but when used, pay will be 1.5x: In this scenario, an employee works an extra hour on Wednesday and gets to take a different hour off at a later date. When the employee takes the time off at the later date, they are credited 1.5X their normal hourly rate for that hour.
Book time to Lieu Time that will be banked for future use, but then decide to pay it out: In this scenario, an employee works an extra hour on Wednesday and wants to save the time for future use. The employee instead decides to have the time paid out at the end of the year. The time is handled upon earning the same as it is in the Book time to Lieu Time that will be banked for future use scenario. When the employee indicates that they want the time paid out instead, there are two options:
- Perform a time bank transfer in the employee attendance plan. To move the hours from the cause of absence with the pay code of 1.0X to the cause of absence with the pay code of 1.5X. Correct the transfer lines to show the conversion of hours, that is, divide by 1.5. Then enter time on the Absence Registration page with the Source Type of Used to deplete the balance and send the information into the compensation journal.
- Manually zero out the hours in the Absence Registration page for the time off in lieu cause of absence, and enter a line into the compensation journal directly for the hours or amounts that must be paid.
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