Assume that your company has a Job at the Industrial Plant for which it has been difficult to retain employees consistently. You have decided to add an incentive for employees to work at this Job by offering to pay an additional $1.00 per hour. In addition, working at this Job also pays employees up to $10.00 per hour.
In the Hours Categories screen, set up an Hours Category named Industrial Plant. For each Hours Description for this Hours Category, enter a Maximum Alternate Pay Rate amount of $10.00 and an Add On Alternate Pay Rate amount of $1.00.
In the examples, assume that all employees have the Accept Alternate Pay Rates option selected in the Pay Information screen of the Employee Master File. In addition, each of the employees in the examples have hours entered in timekeeping for the Job that uses the Westmill Processing Plant Hours Category.
Example: An employee that has a normal pay rate of $7.50 per hour will have his/her pay rate increased to $8.50, which includes the Add On Alternate Pay Rate amount of $1.00.
Example: An employee that has a normal pay rate of $8.50 per hour will have his/her pay rate increased to $9.50, which includes the Add On Alternate Pay Rate amount of $1.00.
Note: The system applies Add On Alternate Pay Rate amounts to wages AFTER the Minimum and Maximum Alternate Pay Rates rules are applied.
Example: An employee that has a normal pay rate of $10.50 per hour will have his/her normal pay reduced to $10.00 per hour, because $10.50 is greater than the Maximum Alternate Pay Rate amount of $10.00. However, this employee will then have an extra $1.00 added to his/her pay rate, to increase the pay rate to $11.00, which now includes the Add On Alternate Pay Rate amount of $1.00.
Note: The system applies Add On Alternate Pay Rate amounts to wages AFTER the Minimum and Maximum Alternate Pay Rates rules are applied.
It is important to note that during payroll processing the employee pay rate for the work date is checked against the Date Rate Effective (on the Hours Categories screen) and if the work date is equal to or greater than the Date Rate Effective date and there are Alternate Pay Rates then the system will use the current Alternate Pay Rates. If the work date is less than the Date Rate Effective date the system will use the Previous Alternate Pay Rates.