Staff with multiple pay rates

The answers really depend on the nature of employment and duties required (these examples are for permanent staff, accruing 4 weeks of annual leave and 5 days sick leave on each leave entitlement anniversary):

An employee doing essentially the same duties at different rates

The employee's duties are essentially the same (e.g. all admin or all consulting or all maintenance, but paid different rates for various normal duties, possibly having different rates for day and night work etc).

Each pay period

  • In this case it is reasonable to have the employee set up as a single employee record, with multiple rates stored in their standard pay
  • simply alter the hours against each rate for each pay period.
  • Alternatively, use one of the many timesheet import facilities available in SmoothPay to split the employee's time between as many dept/cost/job codes and rates as required (there is no practical limit to this in Smoothpay)

Annual leave

  • if the employee's earnings cannot be determined with any certainty (they earn different amounts each pay period), then it is reasonable to pay the employee using their AWE (Average Weekly Earnings) for the last 4 weeks or last 52 weeks or an agreed weekly rate (whichever is greater) rather than their current OWE (Ordinary Weekly Earnings) as that value is unable to be accurately determined.
  • if you need to split these costs over multiple cost centres and/or departments then see notes below for suggestions

Sick leave, public holidays, alternative leave, bereavement etc

  • if the employee's daily pay cannot be determined with certainty, then it is reasonable to pay the employee using ADP (Average Daily Pay) calculated from days paid in the last 52 weeks
  • otherwise [the day's pay can be determined accurately] enter a composite value representing that day's pay.
  • if you need to split these costs over multiple cost centres and/or departments then see notes below for suggestions

An employee's duties are significantly different (e.g. two jobs, such as Cleaner and Admin)

Consider the possible implications of ACC premium categories for the duties performed - if they are different then you should probably have separate employee records and contracts for each job.

In fact there's no reason you can't have one job set up as casual and the other set as permanent with leave accruals and unaffected by the casual earnings (though you need to use caution here, see When does a casual employee have to become permanent?)

The employee's duties are essentially the same (e.g. all admin or all consulting or all maintenance, but paid different rates for various normal duties, possibly having different rates for day and night work etc).

Each pay period

  • In this case it is reasonable to have the employee set up as a two employee records, each representing the contract conditions for the respective duties
  • SmoothPay provides an aggregation function to treat pays input in the same period as a single amount for tax purposes and splits the tax accordingly
  • simply alter the hours for each employee's record for each pay period

Leave payments

Splitting leave over multiple cost centres or departments

Our advice is DON'T

There are much better ways of dealing with overhead costs such as Leave, ACC premiums etc., by using overhead loadings or calculations (Allowances and Deductions can be classed as 'Employer Calculations' for this very reason) and/or simply charging any leave taken to a single cost centre (Overheads or Leave Costs)

However, if you need to you can analyse as many entries as you need by creating individual pay input transactions, analysed as required - you just need to be absolutely certain that the leave consumed is correct (e.g. totals 1 week of annual leave, or totals 1 day for a public holiday. We strongly advise against doing it this way.

 

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