Understanding Paying Salary and Exception Hourly Employees With PeopleSoft Payroll for North America

When you hire a salary employee and set up the salary compensation for that employee, it is important to take note of the following items:

• When you hire an employee and set up salary compensation, you define the compensation rate for the employee at the time of hire.

  You set up the salary amount on employee record 0 (zero). Select a pay group that does not require confirmation. This option allows an employee to be paid the compensation rate entered by default. This will create the compensation information on employee record 0. You should maintain any changes to the employee's compensation rate on employee record 0.

• When you assign an employee to an assignment, depending on whether the Additional Jobs — Salaried Employees check box is selected on the Staffing Installation page, the system may create a new job record for the employee. However, since the employee is salaried, the employee's compensation is paid from employee record 0. You enter bill rates, but not pay rates, on the assignment.

• If the Salaried Employees check box in the Additional Job Options group box on the Installation Options - Staffing page is deselected, the system will not create additional jobs when creating assignments for salaried employees. In this configuration, hours are reported and paychecks are generated using the same employee job record number and the labor distribution process can allocate the actual labor cost against hours reported and this information can be sent to PeopleSoft Project Costing.

  If the Salaried Employees check box is selected in the Additional Job Options group box on the Installation Options - Staffing page , the system creates one job record for each assignment created. While time is reported against the job record associated with the assignment (project and activity), the employee is compensated based on the job record that was created when he or she was hired. Because hours are reported against a different job record from which the employee is paid, the labor distribution process is not able to allocate the actual payroll costs against the time reported. PeopleSoft Pay/Bill Management, in this configuration, populates the time entry records with an estimated rate equal to the annual salary of the employee (as specified in his or her default job record) divided by 2080 hours.

• When configuring the system to always create additional jobs for salaried employees, report time for these employees using a TRC that is not mapped to an earnings code in order to prevent time data from going to PeopleSoft Payroll for North America. If time data goes to PeopleSoft Payroll for North America, this could result in paying an employee more than once (once on employee record 0 and again on employee record 1, 2, 3, and so on).

  On employee records 1, 2, 3, and so on, select a pay group on the Assignment - Payroll page that does require confirmation. This option does not allow an employee to be paid by default. So, if pay on employee record 1, 2, 3, and so on is inadvertently passed to payroll, the status defaults to not ok to pay.

Exception hourly employees are treated exactly the same as hourly employees. For PeopleSoft Pay/Bill Management, you enter time in PeopleSoft Time and Labor and the system then passes this information to PeopleSoft Payroll for North America. PeopleSoft Time and Labor has features for Exception Time Reporters so that time does not need to be entered positively. Therefore, the core PeopleSoft Payroll for North America exception hourly functionality is not used for PeopleSoft Pay/Bill Management.

Depending on whether theHourly Employees check box is selected on the Staffing Installation page, when you assign an employee to an assignment, the system creates an additional employee job record in PeopleSoft HCM for each assignment or tries to re-use existing job records. When you enter time for the employee, the override rate is the pay rate defined on the assignment.