Compensation

You can access the Compensation view from the People icon.

Permanent or recurring data regarding a worker’s pay information can be entered and updated in the Compensation view.

Add Compensation

1. Select Compensation from the View menu.

2. Complete the applicable fields.

   • Standard Pay:  Most commonly, a worker’s hourly rate or salary. This might also be recorded as an annual salary, daily rate or piecework rate.

   • Other Pay Rates:  May reflect additional rates of pay that a worker receives on a regular basis, for example a restaurant employee who works as both a server and a hostess, paid at two different hourly wages for each job. To add a pay rate, click in the Other Pay Rates heading.

   • Calculated Standard Pay:  This information can be used in conjunction with the Start Payroll feature to facilitate faster entry of payroll data. If a worker’s pay is an hourly rate, and Standard Pay Period Hours have been entered in the Compensation view, then the worker will be paid using Standard Pay Period Hours.

   • Overtime Information:  The Overtime Factor represents the multiplier that will be most commonly used for the overtime pay calculation (refer to Overtime Information). Initial display will be blank that indicates a default to the overtime factor that was set up at the client level by your Paychex representative but this can be overridden at an individual worker level if needed.

3. After the information is added or modified, click SAVE.

Overtime Pay Requirements

The Fair Labor Standards Act (FLSA) states that non-exempt employees are generally entitled to receive one and one-half times their regular rate of pay for all hours worked over 40 in a workweek. Job descriptions, not job titles, determine whether an employee is non-exempt.

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Handling Rate Changes

Permanent hourly rate or salary changes must be made in Compensation view. To change an employee's rate permanently while in the People service:

1. Select the employee, and navigate to the Compensation view.

2. Enter the new hourly rate or salary.

3. Click SAVE.

From Payroll Entry

1. Click the drop-down arrow by the employee’s name to select the employee.

2. Select Rate, then navigate to the Compensation view (Employee Maintenance screen displays).

3. Enter the new rate/salary.

4. When modified, click SAVE.

   If a worker already has an existing saved check, you will receive a message regarding the permanent rate change made and its effects on that check.

Overriding an employee's hourly rate or salary in Pay Entry results in the employee being paid at the new rate for this payroll only. To change an employee's rate for this paycheck, enter the new rate in the Regular Rate or Regular Amount field as necessary, or click Edit Employee and change the information.

Click at the bottom of this screen for detailed training information and tutorials on using this feature.