How Do I Track Labor Hours and Earnings?

In order to efficiently and effectively track labor hours and earnings for an employee, payroll information must be entered in a very specific order. Follow the order outlined in this checklist to effectively track labor hours/earnings:

  1. Set up distribution codes for processing payroll (Maintain>Payroll>Distribution Codes). Distribution codes can be set up with a single line item equaling 100%, or multiple lines equaling a total of 100%. Distribution codes can also be set up for each individual employee ID.
  2. Verify that Track Labor Hours check box is selected for earning codes (Maintain>Payroll>Earning Codes).
  3. Update each employee's timesheet (Timesheets>Enter Default Timesheets) with the appropriate distribution code. The same earning code can be used multiple times with different entries for hours and distribution codes .

    4. Once payroll information has been set up, you are ready to track labor hours and earning during each payroll process. In order to do this efficiently, follow the steps outlined in this checklist.

  4. Associate the appropriate distribution codes with the respective earning code and labor hours (Timesheets>Enter Regular/Supplemental Timesheets).
  5. Calculate payroll (Activities>Payroll>Calculate Payroll).
  6. Review and/or edit calculated payroll (Activities>Payroll>Review/Modify Calculated Payroll).
  7. Print the payroll checks and direct deposit vouchers (Activities>Payroll>Print/Email Checks and Vouchers). This is when the labor hours and earnings are distributed.

    8. Note: During the check printing process, all payroll history files including labor hours and earnings are updated, and the calculated payroll and regular/supplemental timesheets are deleted. Therefore, it is a good idea to make a backup of the organization data files before proceeding with the check printing process.

  8. Print the payroll's Distribute Labor Hours report for review (Reports>Payroll>History>Distribute Labor Hours).
  9. If appropriate for the organization, create a Direct Deposit File (Reports>Payroll>Processing>Voucher Register). Print the direct deposit report, and/or export the direct deposit information to the appropriate file format (using an *.ACH file application).

    10. If the Direct Deposit module is installed, refer to the Processing Direct Deposit checklist for more information about creating and sending a Direct Deposit File to a financial institution.

  10. Distribution of labor can be modified as follows:
    • By editing the percentage distribution in the Distribution Code (Maintain>Payroll>Distribution Code) that is associated with the Earning Code's labor hours. Or, by clearing the Track Labor Hours check box for that Earning Code (Maintain>Payroll>Earning Codes). After the percentages are edited (or changes made to the Earning Code), select Activities>Payroll>Distribute Labor Hours/Earnings. The process deletes the existing labor hours/earnings distribution and replaces it with the new percentage distribution and/or applicability of "Track Labor Hours." Note that the Activities>Payroll>Distribute Labor Hours/Earnings process only applies to a printed payroll that is not transferred to accounting.
    • By voiding the check (Activities>Void Checks), and then entering the information on the Supplement Timesheet (Timesheets>Enter Regular/Supplemental Timesheets) to modify labor hours or earnings on a printed check. If the payroll checks were neither calculated nor printed by the system, enter information using Activities>Payroll>Enter Manual Checks.
  11. At this point, you can manually update the labor hours and earnings by selecting Activities>Payroll>Distribute Labor Hours/Earnings. This is a process that distributes labor hours and earnings by account code combinations.
  12. Transfer the payroll data to Accounting (Activities>Payroll>Transfer to Accounting). Note that this process creates unposted transactions in the system. During the transfer process, the labor hours and earnings are regenerated for the final time. It is important not to modify distribution codes until the Transfer to Accounting process is complete.
  13. Post transactions in Accounting (Activities>Manage Sessions>Post Transactions). To edit checks, use the Transactions>Edit System Generated Checks>Payroll System Checks, Payroll Manual Checks, or Payroll Void Checks forms in Accounting. Select the batch of checks on the Session form, and then change the check information or transaction entry line items on the Transaction Entry form. Note that Transfer to Accounting uses the current setup of Distribution Code (percentage distribution) and Earning Code (Track Labor Hours). If either changed, the Labor Hours/Earnings will be replaced with the edited distribution percentages.
  14. If necessary, undo a previously transferred payroll in the event that a correction needs to be made (Activities>Payroll>Undo Transfer to Accounting).

    15. Note: The Undo Accounting Transfer form designates the selected payroll as transferable; it does not change Employee History or other payroll records including Labor Hours/Earnings, nor does it affect the entry originally transferred to Accounting.