Earnings Code Based on Other Earnings

Use the Based on Other Earnings/Hours group box on the Earnings Table - Calculation page to calculate shift pay based on either hours or amount of another earnings code or a special accumulator.

Calculation Description

This table describes the pages and fields that you can use to enter shift differential when you base the shift pay on other earnings:

Page	Shift Differential Entry	Description of Shift Earnings Calculation
Earnings Table - General	Unit/Override Rate	Shift differential rate times hours of the specified earnings or accumulator.
Earnings Table - Calculation	Multiplication Factor	Shift differential percent times the amount of the specified earnings or accumulator.
Additional Pay	Hourly Rate	Shift differential rate times hours of the specified earnings or accumulator.

Setup Summary

This table summarizes how to set up shift pay using each of these calculation methods:

Shift Differential Entry	Earnings Table Setup Summary	Additional Pay Setup Summary
Unit Override Rate	General page: Select Unit Override Rate as the payment type Enter the shift differential. Taxes page: Deselect Elig for Shift Differential. Calculation page: Indicate either Single Earnings or Special Accumulator as the type, and then enter the specific earnings code or accumulator. Select Hours in the Based on Amount or Hours option.	Enter the earnings code that you set up for shift pay based on other earnings. Do not enter an hourly rate. Note: If you set up an earnings code for shift pay that uses the unit/override rate and is based on a single earnings code, you must ensure that you include the shift earnings code on each payline that contains the earnings on which it is based. For example, if the shift earnings is based on the REG earnings, and if you manually add an additional REG payline to the paysheet, you must manually add the shift earnings code to that payline as well.
Multiplication Factor	General page: Payment type must be Amounts Only. Taxes page: Deselect Elig for Shift Differential. Calculation page: Enter the percentage factor in the Multiplication Factor field. Select either Single Earnings or Special Accumulator as the type, and then enter the specific earnings code or accumulator. Select Amount in the Based on Amount or Hours option.	Enter the earnings code that you set up for shift pay based on other earnings. Do not enter an hourly rate.
Additional Pay Hourly Rate	General page: Select Hours Only as the payment type. Taxes page: Deselect Elig for Shift Differential. Calculation page: Select either Single Earnings or Special Accumulator as the type, and then enter the specific earnings code or accumulator. Select Hours in the Based on Amount or Hours option.	Enter the earnings code that you set up for shift pay based on other earnings. Enter the employee's hourly shift differential in the Hourly Rate field.

Shift Differential Entry

Earnings Table Setup Summary

Additional Pay Setup Summary

Unit Override Rate

General page:

Select Unit Override Rate as the payment type
Enter the shift differential.

Taxes page: Deselect Elig for Shift Differential.

Calculation page:

Indicate either Single Earnings or Special Accumulator as the type, and then enter the specific earnings code or accumulator.
Select Hours in the Based on Amount or Hours option.

Enter the earnings code that you set up for shift pay based on other earnings.
Do not enter an hourly rate.

Note: If you set up an earnings code for shift pay that uses the unit/override rate and is based on a single earnings code, you must ensure that you include the shift earnings code on each payline that contains the earnings on which it is based. For example, if the shift earnings is based on the REG earnings, and if you manually add an additional REG payline to the paysheet, you must manually add the shift earnings code to that payline as well.

Multiplication Factor

General page: Payment type must be Amounts Only.

Taxes page: Deselect Elig for Shift Differential.

Calculation page:

Enter the percentage factor in the Multiplication Factor field.
Select either Single Earnings or Special Accumulator as the type, and then enter the specific earnings code or accumulator.
Select Amount in the Based on Amount or Hours option.

Enter the earnings code that you set up for shift pay based on other earnings.
Do not enter an hourly rate.

Additional Pay Hourly Rate

General page: Select Hours Only as the payment type.

Taxes page: Deselect Elig for Shift Differential.

Calculation page:

Select either Single Earnings or Special Accumulator as the type, and then enter the specific earnings code or accumulator.
Select Hours in the Based on Amount or Hours option.

Enter the earnings code that you set up for shift pay based on other earnings.
Enter the employee's hourly shift differential in the Hourly Rate field.

Example of Shift Calculations When Based on Other Earnings

All of the example calculations use this data:

Variable	Value
Shift earnings based on single earnings code	REG (base pay earnings)
Shift-eligible hours in pay period	40
REG earnings for pay period	$400.00
Base pay hourly rate	$10.00

This table shows the shift calculation for each differential entry method:

Differential Entry	Value	Shift Earnings Calculation	Total Earnings (REG + Shift)
Unit Override Rate	$2.00	40 x $2.00 = $80.00	$480.00
Multiplication Factor	.5	$400.00 x .5 = $200.00	$600.00
Hourly Rate in Additional Pay	$3.00	40 x $3.00 = $120.00	$520.00

Note:

The system reports the regular earnings and the shift earnings separately on the paycheck.

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