Page tree
Skip to end of metadata
Go to start of metadata

Question:

When dilution is turned on, a new Person cost rate for Exempt employees must begin on the same day as the Dilution Period Begin date.  However, when you hire new salaried employees, their hire date may fall on a day other than the first business day of the pay period. For example, if you pay semi-monthly or monthly, you may have a salaried employee start on a mid period date like the 24th of the month. The same is true for Weekly or Biweekly periods where someone is hired on a Wednesday.  You will need to determine how to set them up so that they are costed and paid the correct amount. 

Several options for handling this are outlined below. Unanet does not advise which solution below you should use. It will depend on your company policy/handbook and your interpretation of FLSA law as to which solution you choose. You may want to speak with a labor attorney if there are any questions.

Note that this does not apply to employees paid hourly as dilution is not involved in that case. 

Example: If a person is hired on 8/24/2017 in a company that pays semimonthly, there are 6 business days in the period during which the person is not an employee. 

Days in yellow are days in the pay period and on the timesheet for which the person was not an employee. Days in gray are days in the pay period for which the person is an employee.

Solution

You will want to evaluate the solutions below to determine which solution is best for your company

ID Solution Partial Period Paid as % of Salaried Period Pay, or as Hourly Pay Description Pro's Considerations VSP Options (Validation Stored Procedures) Possible Reporting Impacts
1 Percentage of Period Pay via Pay Code Charges % of Period pay

This is one of three solutions which allows you to pay the person a percentage of their salaried pay.

The special project and Pay Code with Exempt (Salaried) status of "Leave Without Pay" for accurate calculations. The Pay Code can be labeled however you want it to appear on the timesheet. For example, you may choose to label the Pay Code as "PARTIALPD" or "NONWORK".

This Pay Code and project is used to charge time on days when the person was not an employee.

This Pay Code can be charged by the person or by anyone authorized to edit their timesheet (HR, manager, etc.)

Follow the solution described on the link in the column to the left as if this non-work time were leave without pay which is the main focus of that link.

  1. Unanet calculates the pay automatically without any external calculations required.

  2. No manual calculations or person profile edits are required.

  3. Added benefit of not designated the person as Non-Exempt (Hourly) when in fact they are Exempt (Salaried).
  1. The employee or someone with edit permissions (HR for example) must add a row to the timesheet using the special Pay Code for days in the period outside of their tenure in the company.

  2. One-time Admin creation of a "PARTIALPD or "NONWORK" project and Pay Code is required.
A VSP may be used to ensure that every day contains the minimum hours required for the workday. In the case of the special "PARTIALPD" or "NONWORK" Pay Code, the VSP can require exactly x hours per day.

You may want to exclude the special Pay Code when running the Resource Allocation report or other utilization reports order to not penalize the person for the time prior to hire date or after term date.

2 Percentage of Period Pay via Adjusting the Period Dilution Hours % of Period pay

This is one of three solutions which allows you to pay the person a percentage of their salaried pay.

For every new hire or terminating hire, you will go into their person profile and adjust the Person Profile Dilution Hours.

  1. No special Pay Code is required.

  2. No need for someone to add an additional timesheet row.

  3. Added benefit of not designating the person as Non-Exempt (Hourly) when in fact they are Exempt (Salaried).
  1. You must edit the Dilution Hours for every new and terminating person.

  2. A manual calculation must be made outside the system for every new and terminating person.

  3. The Unanet Administrator or client Payroll Manager may be unaware of the situation, and the user's timesheet may be completed and time/cost diluted prior to this setting being in effect. Recalculation is always a possibility, but it may be too late if payroll is already run.
    1. A stored procedure may help to reduce the possibility of missing the scenario.
A VSP may be able to help identify these situations and prevent time from being submitted if the manual calculation has not been added by an Admin to the Person Dilution Hours screen.

Resource Allocation report does not reflect that the person has reduced capacity in the pay period due to mid-period start date.

3 Straight Pay - Set as Classification of Non-Exempt. Hourly pay for partial period

You will set the Person Profile to be Non-Exempt (Hourly) for the partial period (hire and term periods), and Exempt (Salaried) for the first full period (period immediately following period of hire).

The employee will effectively be paid hourly for their work in their first and last partial period with your company.

Follow "Method 1" on the link in the column to the left.

The employee will be paid for all hours charged in the partial period (hire and term period). For example, if they work 10 hours in a day, they will be paid for those 10 hours on an hourly basis. (While you could employ a stored procedure to allow only 8 hours per day of work, this may not reflect reality and may not be compliant if they are working more than 8 hours per day.)

  1. No special Pay Code is required.

  2. No need for someone to add an additional timesheet row.
  1. Employee will be paid for all hours charged in their first and last period, even if more/less than 8 hours per day.*

  2. Additional rows are required in the Person Profile Rates tab (first and last partial periods as Non-Exempt (Hourly), other periods as Exempt (Salaried)).

  3. Visually shows a historic record of the person as Non-Exempt (Salaried) when they weren't.

    *Consider overtime impacts if the person records more than the minimum hours in the period.

Resource Allocation report does not reflect that the person has reduced capacity in the pay period due to mid-period start date.

4 Straight Pay - edit the Dilution hours to be number of hours they worked  Hourly pay for partial period

You will edit the Dilution hours to be number of hours they worked.

They will be effectively be paid hourly for their work in their first and last period with your company.

Follow "Method 2" on the link in the column to the left.

  1. Same as #3 above.

  2. Added benefit of not designating the person as Non-Exempt (Hourly) when in fact they are Exempt (Salaried).
  1. See #1 in ID3 above.
  2. You must edit the person's Dilution hours to match their worked hours.

Resource Allocation report does not reflect that the person has reduced capacity in the pay period due to mid-period start date.

5 Percentage of Period Pay - Effective Cost Rate % of Period pay

This is one of three solutions which allow you to pay the person a percentage of their salaried pay. This solution is not recommended as it requires external calculations for every new and for every terminating hire and runs the risk of the cost being recalculated by dilution.

You compute an effective hourly cost rate and add that as a initial row in the Person Profile Rates tab, representing 1 full pay period only, as Exempt.

The calculation of the first hourly cost rate is: ((number of days worked/days in timesheet pd) * pay period salary).

You add the second row of the Person Profile Rates tab also as Exempt (Salaried) which represents the person's true derived hourly cost rate (salary/2080).

EXAMPLE:

In a semimonthly period from 8/16 - 8/31, the person is hired on 8/24. Normal semimonthly salary pay is $2000.

The person is available to work 6 days of the 12 days (96 hrs) in the semimonthly period.

The person works 57 hours out of the 48 available, and should be paid for 48.

Annual Salary = $48,000

Semimonthly period salary = $2,000


Person Profile Rates tab will be as follows:

Classification Period Cost Rate
Exempt (Salaried) 8/16/2017 - 8/31/2017 11.53846
Exempt (Salaried) 9/1/2017 - EOT 23.07692


  • Step 1 - Determine percentage of period worked. (number of days worked/days in timesheet pd) * pay period salary) = (6/12) = 50%
  • Apply that percentage against full period pay to get to what the partial period pay should be: 50% of $2000 = $1000
  • 1000 * 24/2080 (to get what they would be paid IF they were being paid 1000 every period)
    = 11.53846
  • Enter that rate into the Person Rates tab for the first period of hire.



No special Pay Code is required.
  1. You must manually compute the effective hourly rate outside of Unanet
  2. You must add two rows in the Person Profile Rates tab, one with the manually calculated effective rate and Exempt (Salaried) status, and the other with the system-calculated rate and Exempt (Salaried) status.
  3. Having the Exempt (Salaried) status on the manually calculated rate row runs the risk of the cost being re-calculated inadvertently.

  1. Resource Allocation report does not reflect that the person has reduced capacity in the pay period due to mid-period start date.
  2. Possible Margin impacts.

Timesheet examples

Solution 1




Solutions 2-5



Additional Information 

Help Docs - Setup Pay Codes 

Help Docs - Dilution 

KC - Dilution entries

KC - FAQ - What are Business Rules Enforcement and Validation Stored Procedures?

Help Docs - Validation Stored Procedures for Time Users

Help Docs - Validation Stored Procedures for Expense Users

Help Docs - Validation Stored Procedures for Manager Time Approvers (Preview Approval Screen)

  • No labels