Pay Group SetID and Shift Table

This topic discusses:

  • Summary of shift pay setup using the Shift table.

  • Example of relationship between setID, pay group, and shift.

  • Shift differential processing.

  • Shift differential calculation formulas.

  • Examples of shift differential calculations.

Note:

This method of calculating shift applies only to hourly and exception hourly employees, based on the employee type specified on the employee's job data. The system does not calculate shift pay for employee type S (salaried).

Summary of Shift Pay Setup Using the Shift Table

To set up shift differential using the pay group setID and the Shift table:

  1. Set up setIDs.

    See Application Fundamentals: Understanding PeopleSoft HCM System Data Regulation.

  2. Verify or add values to the Translate table to identify the shifts that you intend to set up.

  3. Set up shifts for setIDs, specifying the differential as a rate, a factor, or both.

    Note:

    You can set up the same shift differential for all employees in the shift, or you can specify the differential separately on the Job Information page for each employee assigned to the shift.

    See Setting Up the Shift Table.

  4. Link a shift SetID to a pay group.

    See Application Fundamentals: Setting Up Pay Groups.

  5. Assign employees to a valid shift on the Job Information page.

    See PeopleSoft Human Resources Administer Workforce: Job Information Page.

  6. Select Elig. for Shift Differential (eligible for shift differential) on the Earnings Table - Taxes page for applicable hourly earnings codes.

    Selecting this check box triggers shift processing during paysheet creation and payroll calculation.

    See Earnings Table - Taxes Page.

Relationship Between SetID, Pay Group, and Shift

The employee's shift differential is based on the Shift table entry for the setID of the employee's pay group and the employee's shift assignment.

This example shows the shift table entries for a second shift that has two rate differentials that are linked to different setIDs:

SetID Shift ID Differential

SHARE

Shift 2

$1.00

USA

Shift 2

$2.00

Two pay groups are assigned to shift 2.

This table illustrates that the setID assigned to the pay group identifies the correct shift 2 differential for that pay group:

SetID Pay Group Shift 2 Differential

SHARE

Weekly A

$1.00

USA

Biweekly B

$2.00

Shift Differential Processing

Here's how payroll processing uses the setup data:

  • The Paysheet Creation COBOL SQL process (PSPPYBLD) uses job data to populate the shift value on the paysheet.

  • The Pay Calculation COBOL SQL process (PSPPYRUN) validates the shift value on the paysheet against the Shift table and against the setID that is associated with the employee's pay group.

To process shift pay, the system checks:

  1. Employees' job records and paylines to verify that you have assigned each of them to a shift and that the employee type in job data is hourly or exception hourly.

  2. The Shift table to determine how you've defined each shift and whether there are any associated shift differentials that affect earnings.

  3. The Earnings table to see whether the earnings are eligible for shift differential.

There must be an entry on the Shift table for the setID that is linked to the pay group. If a shift value is not defined on the Shift table, the system generates an error message during pay calculation that the shift value was not found.

Note:

If your organization doesn't use multiple shifts, you must still set up the Not Applicable (N/A) shift with blank values in the Shift table for each pay group setID. N/A is the default shift in Job data. Setting up this entry in the Shift table avoids potential processing errors if an earnings code is created with Elig for Shift Differential selected (the default value), which would trigger the shift pay processing of the employee's shift identified in Job data.

Shift Differential Calculation Formulas

This table defines terms used in shift differential calculation:

Term Definition

Shift rate

The shift differential expressed as a flat amount per hour.

Shift factor

The shift differential percentage.

Pay rate

The hourly rate in the Pay Earnings record.

Hours worked

The number of hours associated with the earnings code for that pay period.

The system follows these steps to calculate shift differentials:

Step Formula

Calculate the shift premium

shift rate + (shift factor × pay rate) = shift premium

Adjust the total earnings eligible for shift differential

(pay rate + shift premium) × hours worked = adjusted earnings

Example: Shift Differential Calculations

In this example, the company set up three shifts and shift differentials as follows:

Shift Rate Factor

1

$0.50 per hour

2

10 percent

3

$1 per hour

15 percent

This table shows the earnings calculation in each shift for an hourly employee earning $10.00 an hour and working 40 shift-eligible hours:

Shift Step 1. Shift Premium Calculation Step 2. Earnings Calculation

1

$0.50 + (0 × $10) = $0.50

($10 + $0.50) × 40 = $420

2

0 + (0.10 × $10) = $1

($10 + $1) × 40 = $440

3

$1 + (0.15 × $10) = $2.50

($10 + $2.50) × 40 = $500

Note:

The system does not report shift earnings calculated with the Shift table as a separate earnings code or earnings line on paychecks and reports such as the payroll register.