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Title: Considerations in the alignment of timesheets and payroll periods

Brief description:

This solution outlines considerations in alignment of your Unanet timesheet and your payroll system, in order for Unanet costs and payroll to reconcile. Occasionally companies will want to have weekly time submittal for billing or other tracking purposes, while still paying on a semi-monthly or monthly basis (Option 2 below). Others will create monthly or semi-monthly timesheets that align with the monthly or semi-monthly pay period. (Option 1 below).

What’s covered in this document:

Overview

When Dilution is turned on, Unanet will dilute costs appropriately so that salaried employee cost matches their pay.  By default, the timesheet period established in Admin > Setup > Time > Time Period Setup will automatically supply the Work Hours for Unanet to calculate the costs correctly (for example, 86.6667 for semi-monthly as in the screenshot below). This calculation assumes that the time period and pay period are in alignment.


When the timesheet period is not the same type of period as the pay period, the costs will not calculate as expected using the default Work Hours from Time Period Setup. (Weekly/Biweekly are the same type, and Semi-Monthly/Monthly are the same type.)

Options, Pros and Cons

You therefore have two Options:


Option # and DescriptionProConsideration

1: Modify your timesheet period to be in line with your pay period, with no additional intervention. Default calculations used.

(e.g., instead of using Weekly timesheets with Semi-monthly payroll, use Semi-monthly timesheets with Semi-monthly payroll.)


  • Default Work Hours calculate costs as expected without additional intervention.
  • You can encourage daily or weekly timesheet activity in the semi-monthly timesheets via the built-in Unanet email reminders, which help enforce daily timesheet entry requirements.
  • You may experience challenges in billing on a Weekly basis when you have semi-monthly timesheets (submitting timesheets intentionally early for approval and then pulling back for editing the subsequent week).

2: Have a timeperiod type that is different from your pay period, and on a yearly basis define your time periods. Additional steps each year to define Custom Period.

(e.g., you could have weekly timesheets for billing and still have semi-monthly or monthly payroll.)

Use this link for this method:

KC - Quick Topic - Weekly Timesheet, Monthly or Semi-Monthly payroll

  • Timesheet can be a different period type from your pay period (e.g., time submitted Weekly while costs are calculated and paid on a semi-monthly basis).
  • You must create the Custom Time Periods for the year in advance (if you wait to create them and someone already has a timesheet out there, it will not let you create the custom time period).
  • As you create the Custom Time Periods, you must also calculate the "Work Hours" value for each period in advance.  Sample spreadsheet attached on the page outlining this method: KC - Quick Topic - Weekly Timesheet, Monthly or Semi-Monthly payroll
  • Some weeks must have multiple submissions.  For example, the week of 5/31- 6/6 may be submitted in two separate timesheets (in the case of semi-monthly payroll and weekly timesheets).
  • Payroll may have to wait an extra few days to go out. For example, if the weekly timesheet is 5/31 - 6/6, payroll would likely need to wait until 6/7 to go out.
  • Related to Cost Plus contract billings, the effective hourly rate may vary for a particular day. See Comparison of a Semimonthly Period as Weekly or Semimonthly below.



Timesheet Type and Pay Period Type Table

The following table outlines a few examples of timesheet type and pay period type combinations, and the resulting cost calculations and option recommended:


Unanet Timesheet Type (Submit Period) Pay Period Type Costs will calculate correctly based on default Dilution Period Work Hours, without creating Custom Periods? Option 1 or 2 above is recommended?
Weekly Weekly Yes 1
Weekly Biweekly Yes 1
Biweekly Weekly Will not work since the payroll will need to be submitted more frequently (weekly) than the timesheet period completion would allow (biweekly). n/a
Biweekly Biweekly Yes 1
Semi-monthly Semi-monthly Yes 1
Semi-monthly Monthly Yes 1
Monthly Semi-monthly Will not work since the payroll will need to be submitted more frequently (semi-monthly) than the timesheet period completion would allow (monthly). n/a
Monthly Monthly Yes 1
Weekly Semi-Monthly

No - would need to use Option 2, which is outlined on this link:

KC - Quick Topic - Weekly Timesheet, Monthly or Semi-Monthly payroll

2
Weekly Monthly

No - would need to use Option 2, which is outlined on this link:

KC - Quick Topic - Weekly Timesheet, Monthly or Semi-Monthly payroll 

2

Comparison of a Semimonthly Period as Weekly or Semimonthly

Look at the costs below for a person who gets paid $5,208.33 per semi-monthly period. Hannah Storm enters her time into 1 semi-monthly period, while Hannah Storm2 enters her time into three separate weekly timesheets that are in that semi-monthly period. The total cost for the period equals $5,208.33 for both people, but note that the hourly rate varies for certain dates like 5/16/2016. 

This may be consideration for billing cost reimbursable contracts. 





Demonstration of mixing Time period and Pay period types, without use of Custom Periods

Consider the Following Scenario:

Two people, Tom and Ali:  both are Exempt, both have the same annual salary of $208k/year ($100/hr).  The only difference is that one is using a weekly timesheet and one is using a semimonthly timesheet

Both are paid $8666.67 semimonthly ($208k/24 semimonthly periods).  Tom is on a semimonthly timesheet while Ali is on a weekly timesheet.

Dilution is on in the system and has been applied to the timesheets.


Now consider Ali’s costs when run for the semimonthly period – note that they do not match Tom’s.  Both should be $8666.67. (Click to Enlarge)

Conclusion:

  • The Unanet time period should match your payroll period if you do not plan on creating Custom Time Periods.  For example, if you are not going to use Custom Time Periods, then if you pay semimonthly, your timesheet should always be semimonthly for accurate reporting on cost. 
  • If you require weekly approvals (possibly for billing or other tracking purposes) and you have semi-monthly payroll, then you can use the method outlined on this page which guides you through how to calculate and create Custom Periods for proper cost tracking: KC - Quick Topic - Weekly Timesheet, Monthly or Semi-Monthly payroll
    • Alternatively to using Custom Periods with time periods and pay periods that are of different types, you can submit the semimonthly timesheet on a weekly basis and then pull it back into use as necessary.  The approval history is tracked in the Approval History section of the timesheet, and any changes are tracked in the audit trail. (Special note: if you have the auto-lock property turned on, then adjustments would need to be enabled for that period).  You may prefer, however to use the Custom Period method.


Supplemental information to demonstration above (timesheets and cost rate tabs):

The following information shows the person rates tab, illustrating that each is Exempt (thus subject to dilution) and with a cost rate of $100. (Click to Enlarge)


The following information shows the various timesheets for Tom and Ali.  Tom has one timesheet for 11/1 - 11/15, while Ali has 3 which cover the period 10/27 - 11/15. (Click to Enlarge)


Additional Information

Help Docs - Dilution

KC - Quick Topic - Weekly Timesheet, Monthly or Semi-Monthly payroll