Handling Employees with Multiple Jobs in the Same Organization
This topic provides an overview of multiple job considerations and discusses how to:
Issue a single check.
Set up direct deposit for paychecks.
Take general deductions.
Set up deduction subsets.
Set up union dues deductions.
Set up multiple benefits programs.
Set limits for general deductions and benefits deductions.
Note: The content of this topic is only part of what you must know about multiple jobs. Other relevant information appears in your PeopleSoft HCM Application Fundamentals product documentation.
In many medical, academic, and industrial settings, employees hold more than one job in the same organization. A professor might double as a dean or a doctor as a professor of medicine. Following are some of the considerations to keep in mind when employees hold more than one job in the same organization.
(USA) FLSA Overtime Requirements for Multiple Jobs
The Fair Labor Standards Act (FLSA) of 1937 requires that you pay overtime to nonexempt employees who work more than 40 hours in a week. When an employee has multiple nonexempt jobs in the same organization, Payroll for North America applies the overtime rule to the total hours for all jobs with the same FLSA period.
For example, suppose an employee has two nonexempt jobs:
Data entry clerk for 22.5 hours.
Receptionist for 20 hours.
The system adds together the hours and pays overtime for 2.5 hours at the FLSA rate.
Note: Payroll for North America does not calculate a blended FLSA rate for employees working in multiple companies, because each job would have its own FLSA rate.
(USA) FICA Status Indicator
An employee who holds multiple jobs might be exempt from the Federal Insurance Contributions Act (FICA) in one job, while eligible for FICA in another job. Designate the FICA status of each job on the Job Data - Payroll page in the Job Data component (JOB_DATA).
Tax Calculations
If an employee has multiple jobs with different pay frequencies (weekly, biweekly, and monthly), Payroll for North America calculates the taxes for each job separately, based on the pay frequency. This ensures that you tax an employee's earnings according to the appropriate tax bracket.
Off-Cycle Pay Run
When processing an off-cycle payroll using the right-hand side of the run control page (Off-Cycle group box), do not include multiple-job employees in the same calculation as the single-job employees. You must process the two separately.
Payroll for North America can issue a single check that covers all of an employee's FLSA calculations, taxes, benefits, and general deductions for multiple jobs in the same organization.
To issue a single check:
Select the Single Chk for Multiple Jobs (single check for multiple jobs) option on the Company - Default Settings page.
Designate a primary pay group for the employee on the Payroll Options 2 page.
The primary pay group identifies which pay group the system uses when creating consolidated paysheets. It also determines whether the system should take general deductions for a pay period.
PeopleSoft recommends that you select the pay group in which the payee is paid most often. If you do not select a primary pay group, the system uses the pay group that is associated with the first job into which you hired the employee.
When you run the Create Paysheet process, the system combines the paysheets for all jobs into the paysheet for the primary pay group. When you view the individual paysheets online, they appear as OK to Pay, signifying that they are paid through the consolidated paysheet. The system combines paysheets only when they have the same period end date, FLSA period definition, FLSA calendar ID, FLSA salaried hours used (if subject to FLSA rules), and payroll cycle (on-cycle or off-cycle). The pay frequencies of the paysheets do not have to be the same.
A simple rule of thumb is that all calculations must be completed on all outstanding paysheets prior to the confirm. If an employee has outstanding paysheets in pay group X and Y, all of his paysheets must be calculated before any of those pay groups can be confirmed. The single check will be created under the employee's primary pay group.
To change paysheets after running the Create Paysheet process:
Enter changes on the individual paysheets (you can't see the collective paysheet).
Run the Create Paysheet process again.
Regardless of how many jobs an employee has, create only one set of direct deposit instructions on the Request Direct Deposit page.
How you take general deductions is influenced by whether you select the Single Chk for Multiple Jobs option on the Company - Default Settings page.
When the Single Check Feature is Enabled
The following describes processing when you select the Single Chk for Multiple Jobs option:
The system takes general deductions based on earnings from the total earnings that it calculates for all jobs paid in the same check.
The system always takes general deductions that are scheduled for the current period when paying the job in the primary pay group.
To have the system take a deduction every time it issues a check for the employee—even when not paying the employee's job in the primary pay group—select the Take on All Paygroups option on the Create General Deductions page. For example, suppose an employee has a weekly job and a biweekly job. The pay group for the weekly job is the primary pay group, because it is the one that the system pays most frequently. Normally, when the system pays the biweekly job, it also pays the weekly job, so it issues a single check. If the system processes the biweekly job at a different time than the weekly job, it takes the deduction only if the Take on all Paygroups check box is selected.
The system automatically takes general deductions in the appropriate pay periods when an employee receives a single check for jobs that the system pays at different frequencies and deductions have different frequencies.
For example, suppose an employee receives a single check, which includes compensation for a semimonthly pay period and a monthly pay period. The system takes a United Way deduction only in the first pay period of each month. When the system issues a check for the second pay period (the check that covers both the second semimonthly period and the monthly period), the system does not take the United Way deduction.
To override a deduction for an employee who has jobs in different pay groups (that is, to override the deduction schedule or change the amount), enter the override instructions for the primary pay group on the General Ded Code Override (general deduction code override) page.
The system ignores override instructions for the employee's other pay groups. To identify an employee's primary pay group, check the Payroll Options 2 page.
When the Single Check Feature is Not Enabled
If the Take on All Paygroups option is not selected on the Create General Deductions page, the system uses the Priority Number field on the Pay Group Table - Definition page to determine whether to take a general deduction. It takes the deduction only when processing the job in the pay group with the lowest priority number.
For employees who receive additional pay:
Select a deduction subset on the Create Additional Pay page.
Request that the system issue a separate check using the Sep Chk # (separate check number) field on the Create Additional Pay page.
The deduction subset overrides other deduction instructions elsewhere in the system.
If you do not request a separate check, the system ignores the deduction subset and follows the deduction instructions from the calendar, the employee's Job record, or payroll data.
If an employee has multiple Additional Pay records with the same separate check indicator, select the same deduction subset for each record. If you select different subsets, the system applies the deduction subset that is associated with the last Additional Pay record that it processes.
Use deduction subsets to process only a selected set of deductions for a pay run. For example, for a bonus run, you might deduct only one or two of the deductions that you process during the regular monthly pay run.
Select a deduction subset on any of the following pages:
Pay Calendar Table
Payroll Options 2
Additional Pay
When you select subsets on more than one page, the system uses a hierarchy to determine which deductions to process. If you pay an employee for multiple jobs, the system also considers the employee's primary pay group and primary job when making this determination.
See the following scenarios and examples of the processing rules that apply. If you do not use the single check option, the term primary pay group used in the scenarios refers to the pay group for the job that the system is processing.
Scenario 1: Deduction Subset on Calendars
The system processes:
General deductions in the subset attached to the calendar for the primary pay group.
Benefit deductions in the subset attached to the calendar associated with the primary job.
Scenario 2: Deduction Subset on Calendars and the Override Benefits Deductions Page
The system processes:
General deductions included in the subset attached to the calendar for the primary pay group.
Benefit deductions included in the subset selected on the Override Benefits Deductions page.
Scenario 3: Deduction Subset on Calendars and the Payroll Options 2 Page
The system processes:
General deductions in the subset on the Payroll Options 2 page.
Benefit deductions in the subset specified on calendar for the primary job.
Scenario 4: Deduction Subset on Calendars and Override Benefits Deductions Page and Payroll Options 2 Page
The system processes:
General deductions in the subset on the Payroll Options 2 page.
Benefit deductions in the subset on the employee's Override Benefits Deductions page.
The system ignores the subsets on the calendars because employee-level instructions take precedence.
Example
This table displays the five deduction subsets for the example. All of these deductions have been assigned to the employee on the Create General Deductions page and Assign to Benefit Program page.
Note the following:
(B) indicates a benefit deduction.
(G) indicates a general deduction.
The following table indicates where the deduction subset is selected:
|
Additional Pay |
Calendar for Primary Pay Group |
Job (Benefits Ded Proc Override page) |
Calendar (not primary pay group) |
Payroll Data |
|---|---|---|---|---|
|
None |
401K (B) GARN (G) |
FSA-H (B) Bond (G) |
FSA-D (B) MISC (G) |
401K (B) Garn (G) Bond (G) Charity (G) |
This table lists the deductions taken in the following scenarios:
Scenario 1: Subset defined on calendars.
Scenario 2: Subset defined on calendars and Job data.
Scenario 3: Subset defined on calendars and Payroll Options 2.
Scenario 4: Subset defined on calendars and Job Data and Payroll Options 2.
|
Scenario and Deductions Processed |
401(k) |
FSA-H |
FSA-D |
Garn |
Bond |
Charity |
|---|---|---|---|---|---|---|
|
Scenario 1 |
||||||
|
Primary job in primary pay group |
X |
|
|
X |
|
|
|
Primary job not in primary pay group |
|
|
X |
X |
|
|
|
Scenario 2 |
||||||
|
Primary job in primary pay group |
|
X |
|
X |
|
|
|
Primary job not in primary pay group |
|
X |
|
X |
|
|
|
Scenario 3 |
||||||
|
Primary job in primary pay group |
X |
|
|
X |
X |
X |
|
Primary job not in primary pay group |
|
|
X |
X |
X |
X |
|
Scenario 4 |
||||||
|
Primary job in primary pay group |
|
X |
|
X |
X |
X |
|
Primary job not in primary pay group |
|
X |
|
X |
X |
X |
Set up union dues as general deductions. The system takes these deductions only when paying a job that is affiliated with the union code. Therefore, if an employee is a member of a union, but one job does not qualify for union membership, the system does not take dues for that job.
If the system calculates union dues as a percentage of earnings, PeopleSoft recommends that you:
Assign a unique earnings code to each job that is associated with the union.
Create a special accumulator to track the total earnings for jobs with that earnings code.
Consequently, when calculating the union dues, the system considers only the earnings from jobs enrolled in the corresponding union.
If an employee has multiple jobs that are covered by different benefits programs, and you select the Single Chk for Multiple Jobs option on the Company - Default Settings page, the system breaks down all benefits deductions by benefit record number during processing and stores the balances by benefit record number. For example, if an employee has two jobs that are covered by two separate benefits programs, and both programs include a 401(k) deduction or a Registered Pension Plan deduction for Canada, the system calculates two deductions and displays both on the paychecks.
Employees can have different deduction limits for different jobs. When an employee has multiple jobs with multiple benefit programs (Ben_Rcd#s), and each program has the same deduction, the system adjusts each current goal balance (from the Benefits Program Table page) by the appropriate amount. Because you assign a general deduction at the company level, you can have only a single limit per company for those deductions.
For example, suppose an employee's two jobs are covered by different benefit programs, each with an individual retirement account deduction. The deductions are as follows:
|
Empl_Rcd# |
Ben_Rcd# |
Contribution Amount (% of gross) |
Goal Balance |
|---|---|---|---|
|
0 |
0 |
5% |
1000 USD |
|
1 |
1 |
2% |
500 USD |
The system issues a check that includes:
500 USD gross pay for Empl_Rcd#0, Ben_Rcd#0.
1000 USD gross pay for Empl_Rcd#1, Ben_Rcd#1.
The total deduction amount is (500 USD × 5%) + (1000 USD × 2%) = 45 USD. The current goal balance for Ben_Rcd#0 increases by 25 USD and the current goal balance for Ben_Rcd#1 increases by 20 USD.