How to distribute salary hours for reporting
This article describes salary hours distribution:
Setup
- Login as Admin or manager with access to General account information
- Navigate to (Preferences > General Account Info)
- Select the Payroll tab.
- Enable Salary Distribution
Log out, and back in for the preference to take effect, your selected preference is now active.
Distribute Salary - What each option does
- Do not distribute salary (this will work as it does currently, will only display salary values in the primary department)
- Distribute salary evenly across departments (salary divided by no. departments, then divided by hours worked)
- Distribute salary evenly across departments and jobs (salary divided by no. departments, then by no. jobs in department)
- Distribute salary across total hours worked (salary divided by the total hours across all department and job hours)
Below is a breakdown of how each option works:
Example employee (Salary of $3076.93)
Note that under the employees Jobs/Phases association screen, you are able to manage the wage value per job.
This should be the same value as the overall Salary Amount.
Navigate to Payroll > View all payrolls
Find/Create a payroll where this employee will have hours tracked against multiple departments and/or jobs
Ensure that salary is split correctly:
- Employee tracked hours for 2 departments
- Employee tracked hours for 4 jobs in one department and 1 job for the second department.
- Employee has a total of 82 hours tracked.
Based on distribution preference #2: (Distribute salary evenly across departments)
Breakdown:
Department 1: $1538.35 ($3076.93 divided by 2 departments worked)
- Job 1: $18.99 ($1538.38 / 80.99 hours) * 35.50 hours = $674.28
- Job 2: $18.99 ($1538.38 / 80.99 hours) * 2 hours = $37.98
- Job 3: $18.99 ($1538.38 / 80.99 hours) * 15 hours = $284.79
- Job 4: $18.99 ($1538.38 / 80.99 hours) * 28.5 hours = $541.32
Department 2: $1538.35 ($3076.93 divided by 2 departments worked)
- Job 1: $1538.35 ($1538.35 / 1 hours)
For this preference the total salary amount is divided by the total departments the employee has tracked time in.
The resulting value is then split between the jobs based on hours worked per job.
This results in a base rate per hour, per job
Based on distribution preference #3: (Distribute salary evenly across departments and jobs)
Breakdown:
Department 1: $1538.35 ($3076.93 divided by 2 departments worked)
- Job 1: $384.62 = $10.83 X 35.5 hours ($1538.35 divided by 4 jobs worked, then divided by the hours worked)
- Job 2: $384.62 = $192.33 X 2 hours
- Job 3: $384.62 = $25.64 X 15 hours
- Job 4: $384.62 = $13.50 X 28.5 hours
Department 2: $1538.35
- Job 1: $1538.35 = $1538.35 X 1 hour
For this preference the total salary amount is divided by the total departments the employee has tracked time in.
The resulting value is then split between the jobs worked and then divided by the the hours worked.
This results in a base rate per job that is the same, while the hourly rate for each job differs.
Based on distribution preference #4: (Distribute salary across total hours worked)
Breakdown:
- $3076.93 divided by 82 (total hours worked) = $37.53 (hourly rate)
Department 1: $3,039.23
- Job 1: $1,332.12 = $37.53 X 35.5 hours
- Job 2: $75.04 = $37.53 X 2 hours
- Job 3: $562.64 = $37.51 X 15 hours (Job Salary/Wage is set to $3076.00, thus lower hourly rate)
- Job 4: $1,069.43 = $37.53 X 28.5 hours
Department 2: $37.53
- Job 1: $37.53 = $37.53 X 1 hour
For this preference the base salary is divided by the total hours worked to give an hourly rate.
All jobs have the same hourly rate, across all departments
NOTE: When exporting the payroll, the hours will not be split out, the export should show the default salary hours, as setup in the general account info. (under the time tracking tab)
Total Hours export: will display one entry (primary department, with the default salary hours eg. 80 hours).
Hourly export: will display the hours worked for all departments.
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