Page Comparison

Anchor
job_cost_setting_up_payroll_htm job_cost_setting_up_payroll_htm

Set up Job Cost payroll in the following order:

...

Overhead is the indirect, job-related cost your company incurs in the process of doing business. Examples of overhead costs are workmen's compensation and benefits earned by hourly employees. Overhead may also include items such as administrative salaries, rent expense, and other indirect expenses incurred in a job.

Job Cost allows you to recognize the overhead cost of labor by creating overhead detail codes and assigning those codes to overhead groups. The overhead groups are associated with position/department codes, which are associated with employees. The employee and job are entered in the payroll transaction. After a transaction is posted, the overhead is applied to the job.

...

If you use the Microsoft Dynamics GP Payroll module, Job Cost uses the departments, pay codes, and positions entered in that module for the overhead group codes. If you do not use Microsoft Dynamics GP Payroll, you must enter employee master records, department, position records, and pay codes if you want to recognize overhead.

Note

...

You must set up group codes for overhead in Job Cost regardless if you apply overhead to your jobs. To do so, create an overhead detail code for zero percent or zero dollars per unit. Assign this overhead detail code to the All overhead group code for job department, position, and pay code.

1. Choose Microsoft Dynamics GP > Tools > Setup > Job Cost > Payroll Setup > Overhead Groups.
2. Enter an Overhead Group name and Description. Use the Tab key to move from the name to the description.
3. Enter a Department, Position, and Pay Code. You can use the word All in each of these fields.
4. Enter a Detail Code and choose Save.
5. To print the Overhead Group Codes report, choose File > Print or choose the printer button.

...

Since the number of combinations of department, position, and pay code for a given overhead group code can become quite large, you can facilitate the setup by entering the word All in any of those fields. For example, if all departments, all positions, and all pay codes have a general overhead detail code, All could be used with each of those items.

If a specific combination of department, position, and pay code has a unique detail code, that combination will be used along with any All combinations for the overhead group that match the same criteria. For example, if the administration department, CEO position, and salary pay code combination had a special bonus overhead detail code, and the All departments, CEO position, and All pay codes combination also had a bonus overhead detail code, both detail codes would be used.

...

Federal classification codes are assigned to employees in the Employee Maintenance window or to transactions during Job Cost payroll entry.

If you use Microsoft Dynamics GP Payroll to print payroll checks, these classifications appear on certified payroll reports printed from Job Cost (Reports > Job Cost > Labor Reports > Certified Payroll).

...

If you employ union members, you can enter benefit and deduction categories to be included on your Job Cost Union report. Benefit and deduction categories are assigned payroll benefits and/or deductions. These are calculated during payroll processing and printed on the Job Cost Union report.

Once union categories are created, you assign the categories to a union code using the Benefits and Deductions buttons in the Union Code Setup window.

Note

...

A maximum total of 150 benefits and deductions print on the Union report.

1. Choose Microsoft Dynamics GP > Tools > Setup > Job Cost > Payroll Setup > Union Categories.
2. Enter a Union Category.
3. Mark the appropriate check box to determine which window the union categories will be displayed in:
   • Display in union benefit window: Union categories will appear in the Union Benefits Setup window.
   • Display in union deduction window: Union categories will appear in the Union Deductions Setup window.
4. Choose Save.
5. To print the Union Categories List report, choose File > Print or choose the printer button.

...

You can set up union codes that identify the unions your company is required to report to. Once unions are created, you can assign benefits, pay codes, and deductions.

Step 1:         Create a union code.

1. Choose Microsoft Dynamics GP > Tools > Setup > Job Cost > Payroll Setup > Union Codes.
2. Enter the union code, description, and address information. The Benefits, Hours, and Deductions buttons become enabled.

3. Choose Save. 

   Note

...

1. Deduction and benefit codes must be set up in the Microsoft Dynamics GP Payroll module.

   
   

2. To print the Union Code List report, choose File > Print or choose the printer button. The report includes a union employee's earned wages, benefit, and deduction amounts for a specified period of time. 

   Note

...

1. You must pay

...

1. employees weekly

...

1. and use the Microsoft Dynamics GP Payroll module to print Job Cost Union reports. Also, the date used for building checks must be the same as the beginning and ending dates on your payroll transactions.

   
   

Step 2:         

Anchor
job_cost_setting_up_union_codes__2891 job_cost_setting_up_union_codes__2891

Assign union benefits.

1. Choose the Benefits button in the Union Code Setup window. You can assign the benefits provided by a union to the union codes. Example benefits include 401K and life insurance.
2. Choose a benefit category from the Benefit Category drop-down list. This list contains the benefit categories defined in the Union Category Setup window.
3. Choose a Benefit Code in the list and then choose Insert >>. The benefit code appears in the Union Benefits list.
4. Choose Save.
5. To print the Unions Benefits/Deductions List report, choose File > Print or choose the printer button.

Step 3:           Anchorjob_cost_setting_up_union_codes__4570job_cost_setting_up_union_codes__4570 Assign pay codes.

1. Choose the Hours button in the Union Code Setup window. You can assign pay codes set up in Microsoft Dynamics GP Payroll to a union pay type for the union code. Example pay codes include hourly and overtime.
2. Choose a pay type from the Union Pay Type drop-down list.
3. Choose a Pay Code in the list, then choose Insert >>. The pay code appears in the Union Codes list.
4. Choose Save.
5. To print the Unions Benefits/Deductions List report, choose File > Print or choose the printer button.

Step 4:           Anchorjob_cost_setting_up_union_codes__1375job_cost_setting_up_union_codes__1375 Assign union deductions.

1. Choose the Deductions button in the Union Code Setup window. You can assign deductions associated with a union to the union codes.
2. Choose a deduction from the Deduction Category drop-down list.
3. Choose a Deduction Code in the list and then choose Insert >>. The deduction code appears in the Union Deductions list.
4. Choose Save.
5. To print the Unions Benefits/Deductions List report, choose File > Print or choose the printer button.

...

The rate class feature allows employees to use the same "base" pay codes and benefit codes, relying on the system to substitute the appropriate pay rate or benefit/deduction calculation depending on several factors such as varying union local guidelines, job location (for example, Milwaukee vs. Chicago), or even the type of job (for example, heavy commercial vs. light commercial).

An example would be when an employee receives a completely different compensation package for a period of time, such as when a journeyman is the most senior person on a job site and thus qualifies for the Foreman wage and benefit package for that period of time.
The rate class calculates rates based on a matrix of job positions (classification), pay codes, and union codes; each of which can be changed on a line by line basis on the timesheet.

...

Setting up rate classes involves the following:
Step 1: Enable the rate class feature
Step 2: Set up rate class codes
Step 3: Set up rate class detail
Step 4: Assign rate classes to union employees
Step 5: Assign rate classes to jobs
Step 1:         Enable the rate class feature
You enable the rate class feature in the Posting Options window.

...

1. Choose Microsoft Dynamics GP > Tools > Setup > Job Cost > Job Cost Setup > Posting Options.
2. In the Payroll section, mark the Rate Class check box.
3. Choose Save.

Step 2:         Set up rate class codes
This is where you enter your rate class codes, enable prevailing wage and fringe rate calculation feature (which includes use highest wage rate), or only the use highest wage rate (excluding prevailing calculation).

...

1. Enter a Rate Class code name. Give some thought as to how you want to categorize/name your rate classes. For example, if you are setting up your rate classes to reflect the type of job, for example, heavy commercial vs. light commercial, indicate that in the rate class name.
2. Complete the remaining fields, as necessary.
   • Rate Class: Enter the name of your rate class, being as descriptive as possible.
   • Description: It might be a good idea to include the names of the unions assigned to this rate class, in this description.
   • Use Prevailing Wage and Fringe (Davis Bacon): If your organization pays its employees' wages and fringes based on the government-supplied wage determination sheet, mark this check box so that you can set up rate classes to automatically calculate those rates and fringes. If this check box is marked, the second is automatically marked. When you mark this check box, the Use Highest Wage Rate check box is marked automatically, as the prevailing feature must first determine the highest wage rate for an employee.
   • Use Highest Wage Rate: If your organization pays its employees the highest rate no matter what, mark this check box, and leave the other check box unmarked. The system deter mines the highest rate from the following: 1) employee 2) rate class 3) job rate class and 4) transaction (if different).
3. Choose Save.

Step 3:         

Anchor
job_cost_setting_up_rate_classes_80 job_cost_setting_up_rate_classes_80

Set up rate class detail
You can set up multiple rate classes for multiple position/pay code/deduction-benefit category combinations.
You can enter special rates for benefits and deductions using either a fixed dollar amount or percentage of gross wages. These amounts override any rates set up in the Employee Deduction Maintenance window (for deductions) and the Employee Benefit Maintenance window (for benefits).

...

Note
You cannot delete a rate class if it is assigned to an employee, a job, an uncommitted TimeTrack transaction, or uncommitted Microsoft Dynamics GP Payroll transaction. You can delete an entire rate class (and all its records) if a rate class is selected and none of the individual records are selected.See Copying rate classes.

Step 4:         Assign rate classes to union employees
You can assign a rate class to each union employee. Each employee can be assigned to only one rate class.

...

1. Choose Microsoft Dynamics GP > Tools > Setup > Job Cost > Payroll Setup > Employee Codes.
2. Enter an Employee ID.
3. Enter a Rate Class. The Union Code field automatically defaults to the union code associated with that rate class.
4. Enter a Federal Classification Code.
5. Choose Save. You can also assign a rate class to an employee in the following ways:
   • Assign a rate class to a job that an employee is associated with. This overrides the rate class in the Employee Maintenance Codes window. See Assign rate classes to jobs.
   • Assign the rate class to payroll transactions. The rate class is assigned to the employee for that transaction only, and overrides the rate class assigned in the Job Maintenance and Employee Maintenance Codes windows.

Step 5:         

Anchor
job_cost_setting_up_rate_classes_1076 job_cost_setting_up_rate_classes_1076

Assign rate classes to jobs
You can assign one rate class for each job. The rate class entered in the Job Maintenance window overrides the rate class in the Employee Maintenance Codes window.

...

You can implement prevailing wage and fringe rates into your payroll calculations, based on the information from the government-supplied Davis-Bacon Act (DBA) wage determination sheet. This information is based on the union, county and occupational code (fed class code) and includes standard, and overtime rates for wage and fringe benefits. You might have several different classes of workers on the same Davis-Bacon job (pipefitters, boilermakers, and so on). Each class of employee must be paid their appropriate determination. The actual wages plus employer-funded fringe benefits must equal or exceed the prevailing wage plus the prevailing fringe benefit amount equal or greater than the prevailing wage plus the fringe benefit amount - on an hourly basis (union or non-union) - as the base rate.

If an employee is due a cash fringe amount, which is paid in cash instead of contributing to the fringe benefit fund, the system calculates that amount and adds it to the employee's total hourly wage.
This feature accommodates several prevailing wage and benefit scenarios, including the following:

...

• Prevailing wage is higher than employee standard wage.
• Employee standard wage is higher than prevailing wage.
• Prevailing fringe is higher than employee standard fringe.
• Employee standard fringe is higher than prevailing fringe.
• Prevailing wage is higher than employee standard wage but employee standard fringe is higher than prevailing fringe.
• Prevailing fringe is higher than employee standard fringe but employee standard wage is higher than prevailing wage.

Note

...

An excess in either component (wage or fringe) can offset a shortfall in the other component under the Davis-Bacon Act.

About prevailing feature and rate classes

...

The following diagram shows how the system calculates the pay rate involving prevailing wage and fringe amounts. Pay rate includes any cash fringe that may be due to the employee.

Example scenarios - prevailing wage and benefits

This section contains example scenarios to illustrate how prevailing wage and fringe benefits are calculated, including cash fringe, if applicable.
The Employee Standard rate in the examples below is the highest rate, taken from one of the following:

...

EXAMPLE 1: Prevailing wage and fringe are greater than employee standard wage and fringe - In this example, the prevailing wage and fringe rates are higher than the bricklayer's standard wage and fringe. The bricklayer will get the prevailing wage of 32.71, plus the difference between the prevailing fringe and his/her standard fringe, making a cash fringe of 9.54.

...

Cash fringe = (prevailing wage - employee fringe)
EXAMPLE 2: Prevailing wage is greater than employee standard wage; employee fringe is greater than prevailing fringe, by a greater difference than the wage difference - In this example, the prevailing wage for bricklayers is greater than the employee's standard rate for bricklayers. However, the employee's fringe benefits are higher than prevailing. Because the difference in fringe is greater than the difference in wage (in the example below, $5.21 - $4.21 = $1.00), the employee does not get the prevailing wage, there is no cash fringe, and the wage rate is reduced from $32.71 to $31.71. The total package for the employee is $38.25, which is equal to the prevailing total package.

...

EXAMPLE 3: Employee wage is greater than prevailing wage; prevailing fringe is greater than employee standard fringe - In this example, the prevailing wage for bricklayers is $25.75 per hour but your company has Bricklayer 1 and Bricklayer 2, where Bricklayer 1 makes 25.50 per hour and Bricklayer 2 makes 28.00 per hour. (You can set up the different rates using a combination of the prevailing feature with the rate class feature to set up the three rates). In our example, Bricklayer 2 is used, and since the employee rate is higher than the rate class rate, $28.00 will be used. The prevailing fringe rate is greater than the employee fringe. In this example, the difference in the wages ($2.25) is subtracted from the greater difference in fringe ($3.00), giving us a cash fringe of $0.75.

...

Cash fringe = (prevailing fringe - employee fringe)- (employee wage - prevailing wage)
EXAMPLE 4: Employee standard wage and fringe are higher than prevailing wage and fringe, respectively - In this example, the bricklayer's standard wage and fringe are higher than the prevailing wage and fringe, respectively. Therefore, the total package for the employee is higher than the prevailing package, and no adjustments are necessary.

...

EXAMPLE 5: Employee standard wage is lower than prevailing wage, but the employee fringe is higher than the prevailing fringe - In this example, the prevailing wage is $1.00 higher than the employee standard wage, and the employee fringe is $1.00 higher than the prevailing fringe. Therefore, the employee will not get the prevailing wage of $34.00 but instead, the standard rate of $33.00 (34-1). There is no cash fringe and the total package is $39.00.

...