Introduction
Shift differential is the ability to setup a shift for a group of employees that when worked, will modify the rate of pay for those employees for the time that it is worked. For example, if we have a shift that is set up for the middle of the night and would like to pay our employees more for that shift according to their current rate we would use shift differential for this.
The shift differential will adjust the employees usual pay rate either by adding a dollar amount or adjusting by a percentage of their current pay.
Setup
- Pick a client that needs Shift Diff enabled.
- Log in to the Hourdoc application as an account administrator for that client.
- Go to Preferences -> General Account Info
- On the right hand side there is a checkbox that says: "Enable shift difference", check this box.
-
- Go to Preferences -> Shifts
- Create or edit a shift.
- Click in the "Activate shift differential settings for this shift" and enter your details. - NOTE you are able to set up a shift code just below Pay Codes, the import file of a payroll export will then include both the shift code from the shift, and Shift differential code of the job linked to the item after "Rate".
- Make a note of when the shift runs from.
- Save the shift.
- Click on the associations button and add a couple employees into the shift.
- You should now be setup for your employees to have shift diff setup.
- Now enter in some time entries for an employee assigned to the shift.
- These time entries should fall inside of the shift time.
- Just make sure that you have setup your shifts recurrence to fall in the times you specified as well.
Checking that it works
- Payroll
- View All Payrolls -> View payroll data
- View All Payrolls -> View payroll data -> view data
- View All Payrolls -> View payroll data -> view data -> view times
- View All Payrolls -> View payroll data -> export to G&A EXPORT ACCOUNT (Total Hours and Daily Hours) -> View results
- View All Payrolls -> View payroll data -> export to G&A EXPORT ACCOUNT (Total Hours and Daily Hours) -> View excel file
- View All Payrolls -> View payroll data -> export to G&A EXPORT ACCOUNT (Total Hours and Daily Hours) -> view import file
- View All Payrolls -> View payroll data -> Print all time sheets
- View All Payrolls -> View payroll data -> Print time entries
- Reports
- Payroll Report
- TimeTracker Report
Example of Testing Shift Diff
If we have a shift:
Start: 19:00
End: 07:00
Is Shift Diff: Yes
Adjustment to Hourly wage: 2 dollars per hour
Assignees: John
When ever John works between 19:00 and 07:00 he will be paid at an extra 2 dollars per hour. If we use the following time entries for our example:
John works the following:
Monday: 10:00 - 20:00 - 10 hours
Tuesday: 10:00 - 20:00 - 10 hours
Wednesday: 10:00 - 20:00 - 10 hours
Thursday: 10:00 - 20:00 - 10 hours
Friday: 10:00 - 20:00 - 10 hours
Total Hours: 50 hours
John has a rate of $10 per hour.
We can see that John works 1 hour into our shift diff each day of the week (19:00 to 20:00). So we would have 5 hours of Shift Diff and 45 regular hours.
If we are working on a 40 hour week before overtime then we would normally have 40 regular hours and 10 overtime hours. With shift diff enabled we would have 4 hours of shift diff and 1 hour of shift diff overtime. This is calculated by looking at where the shift diff hours would fall, because on Friday was all overtime we can see that our 1 hour of shift diff for Friday would actually be Shift Diff OT.
Our calculation looks as follows:
REG: 36 hours (40 hours - 4 shift diff hours)
OT: 9 hours (10 OT hours - 1 shift diff OT hour)
Shift Diff: 4 hours (19:00 to 20:00 Monday to Thursday)
Shift Diff OT: 1 hours (19:00 to 20:00 Friday)
Looking at his rate of pay of $10 our cost calculation would be as follows:
REG: 36 x $10 = $360
OT: 9 x ($10 x 1.5) = $135
Shift Diff: 4 x ($10 + $2) = $48
Shift Diff OT: 1 x (($10 + $2) x 1.5) = $18
Total Cost: $561
Without Shift Diff enabled this would be:
REG: 40 x $10 = $400
OT: 10 x ($10 x 1.5) = $150
Total: $550
Setup Scenarios
The following section will explain a few different setup scenarios.
Scenario 1 - Employee with regular hours, OT, shift diff hours and shift diff OT hours
1. Shift differential enabled
2. Employee with regular hours, OT, shift diff hours and shift diff OT hours
Shift setup:
Start: 22:00
End: 05:00
Is Shift Diff: Yes
Adjustment to Hourly wage: 3 dollars per hour
Assignees: Camille Alfred
Hours worked:
Monday: 17:00 - 02:00 - 9 hours
Tuesday: 17:00 - 02:00 - 9 hours
Wednesday: 17:00 - 02:00 - 9 hours
Thursday: 17:00 - 02:00 - 9 hours
Friday: 17:00 - 02:00 - 9 hours
Calculation:
REG: 24 hours
OT: 1 hours
Shift Diff: 16 hours
Shift Diff OT: 4 hours
REG: 24 x $1 = $24
OT: 1 x ($1 x 1.5) = $1.5
Shift Diff: 16 x ($1 + $3) = $64
Shift Diff OT: 4 x (($1 + $3) x 1.5) = $24
Total: $113.5
Scenario 2 - Employee not associated to the shift works shift differential hours
- Shift differential enabled
- Employee not associated to the shift works shift differential hours
Shift setup:
Start: 22:00
End: 05:00
Is Shift Diff: Yes
Adjustment to Hourly wage: 3 dollars per hour
Employee not Assigned: Camille Alfred
Hours worked:
Monday: 17:00 - 02:00 - 9 hours
Tuesday: 17:00 - 02:00 - 9 hours
Wednesday: 17:00 - 02:00 - 9 hours
Thursday: 17:00 - 02:00 - 9 hours
Friday: 17:00 - 02:00 - 9 hours
Calculation:
REG: 40 hours
OT: 5 hours
REG: 40 x $1 = $40
OT: 5 x ($1 x 1.5) = $7.5
Total: $47.5
Scenario 3 - Employee OT exempt
- Shift differential enabled
- Employee OT exempt
Shift:
Start: 22:00
End: 05:00
Is Shift Diff: Yes
Adjustment to Hourly wage: 3 dollars per hour
Assignees: Camille Alfred OT exempt employee
Hours worked:
Monday: 17:00 - 02:00 - 9 hours
Tuesday: 17:00 - 02:00 - 9 hours
Wednesday: 17:00 - 02:00 - 9 hours
Thursday: 17:00 - 02:00 - 9 hours
Friday: 17:00 - 02:00 - 9 hours
Calculation:
REG: 25 hours
OT: n/a
Shift Diff: 20 hours
Shift Diff OT: n/a
REG: 25 x $1 = $25
OT: n/a
Shift Diff: 20 x ($1 + $3) = $80
Shift Diff OT: n/a
Total: $105
Scenario 4 - Rule added to apply shift differential after 1 hour and 30 min worked on this shift for hours worked during the day
- Shift differential enabled
- Rule added to apply shift differential after 1 hour and 30 min worked on this shift for hours worked during the day
Shift:
Start: 22:00
End: 05:00
Is Shift Diff: Yes
Rule: Apply shift differential after 1 hour and 30 min worked on this shift for hours worked during the day
Adjustment to Hourly wage: 3 dollars per hour
Assignees: Camille Alfred
Hours worked:
Monday: 17:00 - 10:30 - 5.5 hours
Tuesday: 17:00 - 10:30 - 5.5 hours
Wednesday: 17:00 - 10:30 - 5.5 hours
Thursday: 17:00 - 10:30 - 5.5 hours
Friday: 17:00 - 10:30 - 5.5 hours
Calculation:
REG: 27.5 hours
OT: 0 hours
Shift Diff: 0 hours
Shift Diff OT: 0 hours
REG: 27.5 x $1 = $27.5
OT: 0
Shift Diff: 0
Shift Diff OT: 0
Total: $27.5
Scenario 5 - Employee has auto breaks of 0.5 hours added for 8 hours worked
- Shift differential enabled
- Employee has auto breaks of 0.5 hours added for 8 hours worked
Shift:
Start: 22:00
End: 05:00
Is Shift Diff: Yes
Hours worked:
Monday: 19:00 - 02:00 - 7 hours
Tuesday: 17:00 - 02:00 - 9 hours
Wednesday: 17:00 - 02:00 - 9 hours
Thursday: 17:00 - 02:00 - 9 hours
Friday: 17:00 - 02:00 - 9 hours
Calculation:
REG: 23 hours
OT: 0 hours
Shift Diff: 17 hours
Shift Diff OT: 1 hours
REG: 23 x $1 = $23
OT: 0
Shift Diff: 17 x ($1 + $3) = $68
Shift Diff OT: 1 x (($1 + $3) x 1.5) = $6
Total: $97
Scenario 6 - Employee has paid holiday hours
Shift differential enabled
2.Employee has auto breaks of 0.5 hours added for 8 hours worked added from 23:00 to 23:30
3.Employee has paid holiday hours
Shift:
Start: 22:00
End: 05:00
Is Shift Diff: Yes
Rule: Apply shift differential after 1 hour and 30 min worked on this shift for hours worked during the day
Adjustment to Hourly wage: 3 dollars per hour
Assignees: Camille Alfred
Hours worked:
Monday: 17:00 - 07:00 - 7.5 hours
Tuesday: 17:00 - 02:30 - 9 hours
Wednesday: 17:00 - 02:00 - 8.5 hours
Thursday: 17:00 - 02:30 - 9 hours
Friday: 17:00 - 02:00 - 8.5 hours
Independence day - 8 hours paid holiday
Calculation:
REG: 25 hours
OT: 0 hours
Shift Diff: 15 hours
Shift Diff OT: 2.5 hours
REG: 25 x $1 = $25
OT: 0
Shift Diff: 15 x ($1 + $3) = $60
Shift Diff OT: 2.5 x (($1 + $3) x 1.5) = $15
Holiday: 8 * 1 = $8
Total: $108
Scenario 7 - **Scenario N/A, shift diff disabled for salary employee**
1.Shift differential enabled
2.Employee is a salary employee
Shift:
Start: 22:00
End: 05:00
Is Shift Diff: Yes
Rule: Apply shift differential after 1 hour and 30 min worked on this shift for hours worked during the day
Adjustment to Hourly wage: 3 dollars per hour to salary rate
Assignees: Darice Alvarez
REG: 25 hours
OT: 0 hours
Shift Diff: 15 hours
Shift Diff OT: 2.5 hours
Scenario 8 - add 10% to hourly rate for shift diff hours worked
Shift differential enabled
Shift:
Start: 22:00
End: 05:00
Is Shift Diff: Yes
Rule: Apply shift differential after 1 hour and 30 min worked on this shift for hours worked during the day
Adjustment to Hourly wage: add 10% to hourly rate
Assignees: Camille Alfred
Hours worked:
Monday: 17:00 - 07:00 - 7.5 hours
Tuesday: 17:00 - 02:30 - 9 hours
Wednesday: 17:00 - 02:00 - 8.5 hours
Thursday: 17:00 - 02:30 - 9 hours
Friday: 17:00 - 02:00 - 8.5 hours
Calculation:
REG: 25 hours
OT: 0
Shift Diff: 15 hours
Shift Diff OT: 2.5 hours
Holiday: 8 hours
REG: 25 x $1 = $25
OT: N/A
Shift Diff: 15 x (1 + ($1 * 10%)) = $16.5
Shift Diff OT: 2.5 x (1 + ($1 * 10%)) = $4.125
Holiday pay: $8
Total: $53.63
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