Overview of Payroll Integration

Procedures for including payable time in pay runs vary by payroll system; however, the general steps that apply to both Payroll for North America and Global Payroll are as follows:

1. In Time and Labor, a user runs the Time Administration process to create payable time for the workgroups with time reporters to pay.

2. In the payroll system, a user sets up the calendars and run IDs for the payroll process.

   The payroll system defines who is to be paid and for what period of time. This information is used to select employees in the pay group who have been active at any time during the pay period.

3. Payable time entries are selected from Time and Labor and sent to the payroll system.

   The first time this occurs, all payable time that meets the selection criteria is sent. After that, only payable time that has been added or changed is selected, including adjustments to the current period and prior periods.

4. The payroll system summarizes the payable time entries.

   Summarization consists primarily of totaling reported hours, units, or amounts at the earnings code or task code level. Each payroll system has its own rules for summarizing data. Pay calculations are run and the payroll cycle is completed.

5. The payroll system sends cost data generated by the pay run back to Time and Labor.

6. The Labor Distribution and Dilution processes are invoked in Time and Labor if you have selected these features.

   • The Labor Distribution process attaches the costs calculated by your payroll system to the corresponding payable time entries in Time and Labor.

   • The Labor Dilution process averages the calculated costs and evenly distributes them across the payable time entries.

The payable status associated with each entry of payable time is updated throughout the various stages of processing. You can view payable status on the View Payable Time Detail page of the Time and Labor self-service component.

This diagram illustrates the process flow when Time and Labor is integrated with a payroll application

After a pay run is complete, payroll costs associated with time that originated in Time and Labor can be extracted from the payroll system and distributed across payable time entries. The updated time detail can then be published to other applications for additional processing.

Allocating costs back to payable time is labor distribution. Labor distribution is an optional feature of Time and Labor that you can select on the Pay System page. Select one of two options.

• Labor distribution only.

  This option enables you to allocate payroll costs back to the tasks for which payable time was originally reported, provided you defined the TRC as eligible for distribution. If you are not tracking time at the task level, costs are allocated to the TRCs to which time was reported.

• Labor distribution and dilution.

  If you select this option, the Dilution process is triggered automatically at the end of the Labor Distribution process. The system reallocates labor-distributed costs for a given day, so that payroll costs are evenly distributed over payable time entries for hourly TRCs flagged as eligible for dilution. If a time reporter is paid at different rates or—in the case of salaried workers—is not explicitly paid for overtime, Time and Labor can calculate an average hourly (diluted) amount and apply it evenly across all hours reported for the day.