Pay codes are labels used to identify pay rate multipliers – they allow you to apply pay rate multipliers to users' time. They are used in overtime rules and pay rules, time off types, and payroll calculations, and they display in the pay code summary in timesheets.
For example, if you are using a California overtime rule or pay rule, you might create and assign the following pay codes:
Pay Code Name
In the Overtime Rule, assign to...
Daily hours worked, less than or equal to 8
Daily hours worked, greater than 8, but less than 12
Daily hours worked, greater than 12
Do not edit the Code field for the default pay codes. The codes are used for pay rule calculations.
If you are using TimeAttend or TimeOff, you choose which pay code is associated to each time off type. The selected pay code specifies which pay multiplier applies to time off hours against that type.
Time off is typically paid at the user's regular rate (x1), but there are possible exceptions to this. For example, a company might need to pay employees double time (x2) for holidays that fall on a user’s regular day off. In this case, they could create a special time off type for use on those days, and apply the double time pay code to it.
To add a pay code:
Pay code type determines how the hours are classified. Set the type to Overtime if you want hours for this pay code to be classified as overtime. In this case, the hours will be included in the OVERTIME total in the hours summary bar on Standard and In/Out timesheets. They will also be included in the Total Overtime Hrs field in reports based on the Timesheet Period Details template.
If hours associated with the pay code are not considered overtime or the pay code will be used only in time off types, set the pay code type to None or Time Off, as applicable.
The regular hours pay code is used in all calculations involving regular hours (for example, in overtime calculations). By default, the Regular Time (x1) pay code is assigned to regular hours.
To change the pay code used for regular hours: