Planning Considerations

Both Global Payroll and Time and Labor are rules-based systems that are capable of carrying out some of the same types of rules. Before integrating the two products, think carefully about which rules you want each system to apply. In general:

  • Define rules that calculate payable time, including overtime, shift differentials, and other special situations, in Time and Labor.

  • Define rules that calculate pay in Global Payroll.

Time reporting codes (TRCs) are mapped to Global Payroll earnings and deductions that add to or subtract from gross and net pay accumulators. You should decide on a strategy for mapping earning elements to TRCs. For example, you might map a TRC to an earning element that does not accumulate to gross pay. This enables you to use a separate rule to calculate the costs that are associated with a TRC but do not contribute to gross pay, such as an employer-paid health insurance premium. You might use the same approach for salaried employees, where the hours that are reported by Time and Labor are not used in the payroll calculation, but are used for costing.

To summarize:

  • Define one earning element that accumulates to gross.

    This is the earning element that the payroll process uses to calculate a payee's payslip. Do not map this element to a TRC.

  • Define a second earning element that does not contribute to gross pay.

    This earning element is used for costing purposes only and, in addition to the payee's salary, can include overhead costs or any costs that you want to add. Map this element to a TRC so that accurate cost data is returned to Time and Labor and made available to the cost accounting, planning, or budgeting application.

    Note:

    For hourly workers and in other situations where you do want the second earning elements to add to gross pay, you can map a TRC to a second earning element that accumulates to gross pay.

    Note:

    Make sure that any earnings to which you map TRCs are set up to receive positive input. This is because Global Payroll brings in Time and Labor information as generated positive input.

    Note:

    If you change the status of an element that's mapped to a TRC to Inactive, update the TRC mapping in Time and Labor.