Labor Distribution

Labor Distribution is the allocation of payroll expenses to specific labor assignments. Payroll expenses include earnings, deductions, and employee and employer taxes. Depending on the client, not all payroll expenses can be factored into labor distribution allocations.

A labor assignment is a component of the company’s overall structure. A labor assignment can be represented as any combination of organizations, locations, or positions.

Examples include:

• an organization in the company

• a position in a company

• a location in a company

• a position in an organization

• a position at a location

• a position in an organization at a specific physical location

• an organization at a specific physical location

Set Up Labor Distribution & Job Costing  

The initial set up of the product is completed by your Paychex representative. The next payroll check date after set up includes the Labor Distribution calculations and report.     

Set Up Labor Assignments  

After labor assignments are added to your company, they can be selected to add a home labor assignment to an employee in People, to set up auto distributions on an employee in People, and to distribute hours in Pay Entry.

Labor assignments are listed in the Labor Distribution view in Company.

To add a new labor assignment:

1. Select Add Assignment from the Add menu in the Labor Distribution Assignments header. A new row is added to the assignments table.

2. Enter the required information.

3. Click SAVE.

To duplicate a Labor Assignment:

1. Select Duplicate Assignment from the Add menu in the Labor Distribution Assignments header.

2. Select the assignments.  A new row is added to the bottom of the list with the duplicated assignment information

3. Change the assignment information, as required.
   

   The assignment name must be unique for each assignment.

4. Click SAVE.

To streamline the process of setting up labor assignments, select one of the following options from the Add menu in the Labor Distribution Assignments header:

• Create Assignments Based On Unassigned Organizations – If your labor assignments are based on your organizational units, this option creates a labor assignment for every organizational unit that does not have a corresponding assignment.
  

  You must have Organizations to use this option.

• Create Assignments Based On Unassigned Organizations and Locations – If your labor assignments are based on your organizational units and locations, this option creates a labor assignment for every organizational unit and location combination that does not have a corresponding assignment.
  

  You must have Organizations and Locations to use this option.

Filter Labor Assignments

To streamline your workflow, the Labor Distribution Assignments table can be filtered to display only the assignments you want to view.

1. Select Advanced Filter in the Labor Distribution Assignment header.

2. Select any combination of Past Items, Current Items, and/or Future Items.

   Any assignment with an end date preceding the current date (a past assignment) displays in the table. You cannot change any information.

3. You can type in the filter text field in the Labor Distribution Assignment header. As you type, the job name, job number, or job ID that matches displays.

4. Click APPLY to retain the filter for the current session. Click SAVE to retain the filter for future sessions.

Assignment

Enter the appropriate assignment name in the data table when setting up an assignment. Each assignment must have a unique name.

Organization Unit, Location, and Position

A labor assignment is defined by an organization unit, a location, and/or a position. Any combination of these can be selected.

• Organization Unit - Must first be set up in the Organization view in Company.
  

  The initial Organization level must be set up by your Paychex Representative.

• Location - Must first be set up in the Locations view in Company.  

• Position - Must first be set up in the Positions view in Company.  

State Tax

State tax is optional information that can be associated to an assignment. Assigning a state tax to an assignment may be useful in situations when employees are working assignments that are in different states. For each employee in Pay Entry, you can assign hours to assignments with an associated state tax. This ensures the appropriate state tax amount is deducted based on the number of hours worked in each state.

To assign a state tax to an assignment, select the state tax from the drop-down menu. The state tax must first be set up in the Withholding & Taxes view in Company for the tax to be available.

Local Tax

Local tax is optional information that can be associated to an assignment. Assigning a local tax to an assignment may be useful in situations when employees are working assignments that are in different municipalities. For each employee in Pay Entry, you can assign hours to assignments that have an associated local tax. This ensures the appropriate local tax amount is deducted based on the number of hours worked in each municipality.

To associate a local tax to an assignment, select the local tax from the drop-down menu. The local tax must first be set up in Withholding & Taxes for the tax to be available.

Workers Comp Class Code

When the Workers’ Compensation service is used, a Workers Comp Class Code is optional information that can be associated with an assignment. You can base your Workers Compensation premiums on a specific class code for a given assignment. An assignment may be considered more or less risky than another, requiring that a class code with a different premium rate be used when an employee’s time is allocated to an assignment.

When entering payroll information for an employee, distributing the hours based on assignments with an associated Workers Comp Class Code ensures that the appropriate Workers Compensation premium is calculated for each job worked.

To associate a Workers Comp Class Code with an assignment, select the Workers Comp Class Code from the drop-down menu. The Workers Comp Class Code must be set up for your company for the code to be available.

Rate

Rate is optional information that can be associated with an assignment. You can either enter a dollar amount or select a rate number, Rate 1 through Rate 5.  

If $30.00 is associated with job XYZ, the employee rates are not used and $30.00 is applied.

You can use a dollar amount if all employees working a specific assignment are to be paid the same amount. Select Rate 1 through Rate 5 to allow each employee to be paid a different amount. In People, you can assign a specific dollar amount to Rate 1 through Rate 5 for each employee. When setting up labor assignments in Company, if you select a rate number to associate with a specific assignment, the dollar amount assigned to that rate number for each employee is used to calculate payroll.

If $30.00 is associated with Labor Assignment XYZ, then the employee rates are not used and $30.00 is applied.

If Rate 1 is associated with Labor Assignment XYZ, then $10.00 is used.

Shift

Shift is an optional amount that adds pay for employees who work a specific shift. Additional pay for working shifts can be set up as a flat dollar amount per hour or as a percentage of pay.

Start Date

The start date defaults to the current date but can be modified.

End Date

The end date is optional. If no end date is entered, the assignment is current and available for use. If a particular job is scheduled to be completed by a certain date, an end date can be entered and the job will no longer be available in Pay Entry to assign to employees’ hours past this date.