Entering Salary Labor Transactions

You can enter time for salaried employees. The system calculates an average hourly rate by dividing an employee's weekly salary by the number of hours worked. Salary amounts can be entered for Job Cost, Service Management, Equipment Management, and Unbilled transactions.

To use this feature, mark the Use Average Salary Labor Rate checkbox in the Setup Options window (Microsoft Dynamics GP > Tools > Setup > TimeTrack > Setup Options).

1. Select Transactions > TimeTrack > Time Card Entry.
2. Complete the Time Card Entry window. See Entering Labor Transactions. Use a salary Pay Code, or a pay code based on a salary pay code. Commission pay codes should not be used.
3. Save the transaction.
4. Use the Calculate Average Rate button to calculate the rate for this transaction. Pay rates are automatically calculated when committing the batch or printing the Employee Weekly Time Edit List or Time Sheet Edit List. Pay rates appear as zero until they are calculated.
5. Double-click a transaction from the scrolling window to view the pay rate and total cost. The Pay Rate field will be visible if the Edit Financial Fields and Display Pay Rate on Trx checkboxes are marked in Payroll Setup Options (Microsoft Dynamics GP > Tools > Setup > Payroll > Payroll > Options button). Due to rounding, the Pay Rate field for salary transactions displays five decimal places when the Use Average Salary Labor Rate checkbox is marked in Setup Options. If you are not using this feature, the number of decimal places is determined in Payroll Setup Options. 
   
   Since salary transactions can be in any pay period, all pay periods can be used when calculating an average hourly pay rate. To calculate the hourly pay rate, the calculated amount is divided by the number of hours worked in a week, including sick, vacation, and holiday time. For each pay period, the weekly pay amount is calculated as follows:
   • Weekly
     Pay amount
   • Biweekly
     Pay amount / 2
   • Semimonthly
     (Pay amount * 24) / 52
   • Monthly
     (Pay amount * 12) / 52
   • Quarterly
     (Pay amount * 4) / 52
   • Semiannually
     (Pay amount * 2) / 52
   • Annually
     Pay amount / 52
   • Daily
     Pay amount * 5

   The calculation includes all the employee's salary transactions and transactions with pay codes based on salary with the same week-ending date. All salary transactions with the same week-ending date for an employee must be entered in the same batch. 
   
   Rate classes will not affect the pay rate of salary transactions when the Calculate Average Salary Labor Rate checkbox is marked in Setup Options. 
   
   If you have a batch of transactions that all have a salary pay code, you may end up with a Payroll batch of zero transactions after committing the batch, even though there are transactions in the batch.

6. If you want overhead amounts calculated in Service Management, build the checks for this batch as usual. Otherwise, do not mark a batch with zero transactions.
7. If you want to post the transactions to Job Cost, you must mark the Payroll Post to Job Cost Only checkbox in Posting Options before posting the batch. If this option is not marked, you cannot select the batch in the Job Cost Payroll Post window. Unmark the Payroll Post to Job Cost Only option after posting the batch. When committing and exporting batches, transactions with a salary pay code are only sent to U.S. Payroll, Canadian Payroll, or ADP if they have a pay type of vacation or sick. Be sure to base your vacation, sick, or holiday pay codes on the salary pay code, with the same pay rate. If you need a salary-based pay code to have a different pay rate, the hours for the salary-based pay code must be entered in Payroll. For example, salaried employees may get paid an overtime rate of 1.5 multiplied by their salary rate.
8. Similarly, if you want to post the transactions to Service, you must mark the Payroll Post to Service Only checkbox in the Invoice Options window before posting the batch. 
9. Select File > Print to print the Employee Weekly Time Edit List, based on the batch number, employee ID, and week-ending date. Transactions are separated by pay code. The total labor hours by day are at the bottom of the page. These hours do not include fixed assets or expense/travel transactions.
10. Commit the transactions. See Committing Time Card Transactions.

Zero-cost labor transactions will be saved and committed in TimeTrack and sent to Payroll. Zero-cost labor transactions can be entered for any transaction type. A zero-balance journal entry will be created in the General Ledger. Zero balance journal entries must be deleted manually.