When processing payroll with union rate classes, perform the following steps.
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This section includes example scenarios on how you can use rate class to satisfy your complex union payroll needs. The first example takes you through from setup to calculating payroll checks (including sample windows), and show how the system calculates your payroll based on the setup criteria given. The remaining examples illustrate additional combinations of rate classes.Table of Contents
Example 1: Employee works on a heavy commercial job as a temporary Foreman
In this example, an employee, ALAN FLINT, works on a heavy commercial job as part of union Local 7 - Pipefitters in Milwaukee. His job title (position) is normally Journeyman, but on this job, he is Foreman.
FLINT's normal pay rate, as set up in his employee record, is $27.00/hour. Conversely, a Foreman's general pay rate is $37.00/hour. But because a) ALAN is going to be a temporary Foreman on this job, and b) the pay rate increases to $40.00/hour for a Foreman on heavy commercial jobs, the system needs to determine ALAN's payroll at the adjusted rate; that rate will be set up as a rate in Rate Class setup.
ALAN's company will set up their rate class by location/job type.
Step 1: Set up Rate Classes
In this step, we will set up a rate class called MILW-HVYCOMM. Sample data used is summarized below, followed by sample screen shots.
Microsoft Dynamics GP > Tools > Setup > Job Cost > Payroll Setup > Rate Class. The Rate Class Setup window opens.
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When ALAN goes back to being a Journeyman, his pay rate, deductions, benefits, and so on, will be calculated based on the conditions at that time. On his next job, he might be a Journeyman again, and his pay rate could come from his employee record, or if driven by the job, another rate class could be set up then.
Step 2: Assign Rate Class MILW-HVYCOMM to the HVYCOMM Job
In this step, we will assign the rate class MILW-HVYCOMM to a job called HVYCOMM. This will allow us to apply the correct payroll costs (based on rate class and union) to the job.
Cards > Job Cost > Job. The Job Maintenance window opens. Select the job. In the Rate Class field, select the MILW-HVYCOMM rate class. Because multiple unions are assigned to this rate class, you will select the union when entering payroll transactions for each employee.
Step 3: Create Payroll Transactions for ALAN
In this step, we will create payroll transactions for ALAN. In this example, we will create the transaction using the TimeTrack Time Card Entry window. When you select the job, the pay rate as specified with the MILW-HVYCOMM rate class will automatically fill into this window.
In addition, because ALAN is classified as a Pipefitter Journeyman, but instead is a Pipefitter Foreman on this job, you must edit the Position code for each transaction (using the expansion button next to the Pay Code field to open the Edit Payroll Fields window).
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After creating transactions, save and commit the batch. A snapshot of part of the Signature Time Card Commit report displays below.
| Note |
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| Because we can change the Position during payroll transaction entry, we do not affect the employee record at all; ALAN is still classified, by default, as a Pipefitter Journeyman. |
Step 4: Build Checks
Transactions > Payroll > Build Checks. Select the batch, then select Post.
Step 5: Calculate Checks
Transactions > Payroll > Calculate Checks. The Calculate Payroll Checks window opens. Select OK to begin the calculate process.
Step 6: Post Payroll Transactions to Job Cost
In this step, we will post the payroll transactions for ALAN using the Signature Payroll Post feature.
Transactions > Payroll > Signature Payroll Posting. The Signature Payroll Post window opens. Select the appropriate batch.
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In this example, our fictitious employees, ALAN FLINT and CHARLEY NICK, work on the same job in the same week. ALAN is back to being a Journeyman Pipefitter, and is classified as such on this job. CHARLEY is an Asbestos Journeyman Class II.
ALAN's pay rate is $27.00/hour.; CHARLEY's is $35.00/hour. In addition to the pay rates being different, their benefits and deductions also vary between the two positions.
Step 1: Set up Rate Classes
In this step, we will set up a rate class called LIGHT-COMM-MILW. Sample data used is summarized below, followed by sample screen shots.
Microsoft Dynamics GP > Tools > Setup > Job Cost > Payroll Setup > Rate Class. The Rate Class Setup window opens.
- Rate Class: LIGHT-COMM-MILW
- Union Codes: Local7 and Local6
- Positions: PF-TM (Pipefitter Journeyman) and IBJ3 (Asbestos Journeyman Class II)
- Deduction Codes: DUES (union dues) = $0.75/unit and .0.85/unit
- Benefits: PENS (pension) = 3% of gross wages for both unions.
- Pay Rates: $27.00/hour and $35.00/hour
Rate Class Setup
Step 2: Assign Rate Class LIGHT-COMM-MILW to the LIGHT-COMM Job
In this step, we will assign the rate class LIGHT-COMM-MILW to a job called LIGHT-COMM (for light commercial work). This will allow us to apply the correct payroll costs (based on rate class and union) to the job.
Cards > Job Cost > Job. The Job Maintenance window opens. Select the job. In the Rate Class field, select the LIGHT-COMM-MILW rate class. Because multiple unions are assigned to this rate class, you will select the union when entering payroll transactions for each employee.
Step 3: Create Payroll Transactions for ALAN and CHARLEY
In this step, we will create payroll transactions for ALAN and CHARLEY In this example, we will create the transaction using TimeTrack Time Card Entry window. When you select the job, the pay rate as specified with the LIGHT-COMM-MILW rate class will automatically fill into this window. After, we will save and commit the batch.
Step 4: Build Checks
Transactions > Payroll > Build Checks. Select the batch, then select Post.
Step 5: Calculate Checks
Transactions > Payroll > Calculate Checks. The Calculate Payroll Checks window opens. Select OK to begin the calculate process.
Step 6: Post Payroll Transactions to Job Cost
In this step, we will post the payroll transactions for ALAN using the Signature Payroll Post feature.
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ALAN's company must set up the rate class feature to account for that higher pay rate in Chicago. We could set up a new record that covers the Chicago union in the existing rate class: MILW-HVYCOMM. However, because we have organized rate classes by location-job type, we will set up an entirely new rate class for Chicago, as ALAN's company will be doing a lot of work there over the next year.
Step 1: Set up Rate Classes
In this step, we will set up a rate class called CHIC-HVYCOMM. Sample data used is summarized below, followed by sample screen shots. In addition, this example will also use the MILW-HVYCOMM rate class that was used in Example 1.
Microsoft Dynamics GP > Tools > Setup > Job Cost > Payroll Setup > Rate Class. The Rate Class Setup window opens.
- Rate Class: CHIC-HVYCOMM
- Union Code: Local7
- Position: Pipefitter Foreman
- Deduction Code: DUES (union dues) = $0.75/unit
- Benefit Code: PENS (pension) = $3.50/unit
- Pay Rate: $32.00/hour
- Rate Class: MILW-HVYCOMM
- Union Code: Local7
- Position: Pipefitter Foreman
- Deduction Code: DUES (union dues) = $0.50/unit
- Benefit Code: PENS (pension) = $3.00/unit
- Pay Rate: $40.00/hour
Rate Class Setup
| Note |
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| Although we decided to create an entirely new rate class name, because of the Chicago location, you can organize your rate class hierarchy any way you want. For example, instead of by location and type of job, we could have set it up only based on the type of job, for example, light vs. heavy commercial jobs, and so on. |
Step 2: Assign Rate class CHIC-HVYCOMM to the HVYCOMM-CHIC Job
In this step, we will assign the rate class CHIC-HVTCOMM to a job called HVYCOMM-CHIC. This will allow us to apply the correct payroll costs (based on rate class and union) to the job.
Cards > Job Cost > Job. The Job Maintenance window opens. Select the job. In the Rate Class field, select the CHIC-HVYCOMM rate class. Because multiple unions are assigned to this rate class, you will select the union when entering payroll transactions for each employee.
Step 3: Create Payroll Transactions for ALAN
In this step, we will create payroll transactions for ALAN. In this example, we will create the transaction using TimeTrack Time Card Entry window. ALAN is working in Milwaukee on Monday and Tuesday, then in Chicago on Wednesday through Friday.
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- Batch: HVY-COMM
- TRX Type/Cost Type: JOB COST
- Job Number: HVYCOMM
- Cost Code: 00-1000-00
- Rate Class: MILW-HVYCOMM
- Union Code: Local7
- Batch: HVY-COMM
- TRX Type/Cost Type: JOB COST
- Job Number: HVYCOMM-CHIC
- Cost Code: 00-1000-00
- Rate Class: CHIC-HVYCOMM
- Union Code: Local8
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After creating transactions, save and commit the batch. A snapshot of part of the Signature Time Card Commit report appears on the next page.
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Step 4: Build checks
Transactions > Payroll > Build Checks. Select the batch, then select Post.
Step 5: Calculate Checks
Transactions > Payroll > Calculate Checks. The Calculate Payroll Checks window opens. Select OK to begin the calculate process.
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Transaction:
We will create TimeTrack transaction for WILLIE GREEN and show that the system will use the highest pay rate of the three:
The Pay Rate filled correctly with $26.75.
In the Edit Payroll Fields window (expansion button in Pay Code field), the Rate Class fills from the job, and the Union from employee. Because the rate class and union code for Willie's union differ from the Milwaukee union, we must change the union.
After changing the union. the Window window looks like this:
If you create more transactions for this job, and the unions differ, you must change the Union field in the Edit Payroll Fields for every transaction.