5.2 HR & Payroll: Configuring Pay Rates

Updated Jun 11, 2020

This article discusses the pay rate configuration. There are several permissions related to viewing Pay Rates.

Please note that even when permissions to view pay rates are unchecked, pay rates may still be visible to super users.

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The Hierarchy Of Pay Rates

TrackTik applies pay rates in a hierarchical manner, with more specific. Starting with most specific (shift rate) and going to least specific (Default BackOffice setting), the hierarchy is as follows:

  1. Shift Rate:  If the shift has a pay rate value it is taken from wherever the user worked 
  2. Position Rate: If the position has a post rate value, it is taken from wherever the user worked 
  3. Account/User Rate: If the account/user has a pay rate it is taken from wherever the user worked 
  4. HR Profile: Is taken from the user profile the user’s home region 
  5. Employee Class/Group: Is taken from the user’s profile home region 
  6. Default rate (Backoffice setting): Is taken from the user’s profile home region 

Remember that the more-specific rate will override the less-specific rate.

Employee Class Rate

Classes are simply groups of employees that have certain specifications in common. For example, each class will have its own specifications such as Rate, Scheduling Priority, and Min/Max hours scheduled per week.

Follow the path below to configure this optional setting. Employees > Employee Classes > Create Employee Class.

Note:  Once you have assigned an employee to a class, the Class Rate will override the employee’s default pay rate.

If you would like to configure your pay rates based on the prevailing wage, the Employee Class is the best way to do so. Prevailing Wage is defined as the hourly wage usual benefits and overtime, paid in the largest city in each county, to most workers, laborers, and mechanics.Prevailing wages are established, by the Department of Labor & Industries, for each trade and occupation employed in the performance of public work.

Employee Pay Rate

Hourly Rates can also be managed at the individual employee level. Follow the path below to set an employee pay rate.

Employees > Select Employee > HR Profile > Payroll and Scheduling Settings > Payroll Rate Section.

Select the employee’s pay rate by modifying the Hourly Rate Type option. Select one of the following: Default Rate, Employee Class, Hourly Rate.

Site & Zone Rates

When you assign an officer to a Site or a Zone, you can choose a different rate that will be applied to this assignment for this officer. You can also edit an already-assigned employee and modify their Site/Zone pay rate.

Get access to this option by following one of the links below:

Sites (Client) > Select Site > Assigned Employees.

Sites (Client) > Site Zones (Groups) > Select Zone > Zone Users

Position Rate

You can also set a pay rate for a position.

Create a position at a Site or a Zone and manage its settings.

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Access this option by following one of these paths:

Sites (Client) > Select Site > Positions

Sites (Client) > Site Zones (Groups) > Select Zone > Positions

Default Payroll Schedules

Payroll schedules include important information such as Payroll Frequency (weekly, bi-weekly, semi-monthly, monthly), Overlapping strategies and Overtime calculation strategies.

Note: If you create more than one payroll schedule, it should be because different groups of employees are being paid differently. If it was a mistake during the configuration you will not be able to edit or delete it, unless a ticket is open for our Support and Development departments.

To create a Payroll Schedule, follow this path:

Settings > Payroll Schedules > New Payroll Schedule

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Label: This is the name of your Payroll Schedule. It will appear in the Default Pay Schedule option from the Default Settings.

Frequency: Choose how often you will generate payroll-ready data by selecting one of the four options available: Weekly, Bi-Weekly (every two weeks), Semi-Monthly (twice a month), or Monthly.

Period Start Time: Use this option to follow regulations in jurisdictions where payroll time needs to be specifically set. If it’s not your case, leave the default value. If you are not familiar with this notion, please contact your assigned Client Success Team Member and they will assist you to set it up properly.

First Period Start Date: Same as the previous setting. You can usually choose any day, unless you have specific regulations to follow.

Period Overlapping Strategy: Choose an overlapping strategy for shifts that span two payroll periods. Two options are available: split shift hours in their respective periods or allocate the entire shift hours to the starting period.

Holiday Overlapping Strategy: Decide how you want to pay your employees during holiday shifts that span two payroll periods. You can either pay holiday rate on hours that overlap with the holiday’s effective period or pay the entire shift as holiday if it started during a holiday.

Holiday Overtime Rule: Choose between two different options for Holiday Overtime: Do not count hours worked on holidays or count hours worked for the Overtime period.

Use weighted overtime calculation method: This is a yes or no setting. Weighted overtime is also known as “blended” overtime. It is most often used in situations where an employee performs multiple types of jobs and gets paid different rates. Weighted average overtime (also called WAOT) uses a formula to get the average of a worker’s different pay rates so they can be paid for overtime without the employer having to calculate and add up the overtime pay for each rate separately. Weighted or blended overtime can also be used in situations where an employee has overtime hours and gets tips or commission as part of their pay.

Example: An employee is working 20 hours at 15$/h and 30 hours at 18$/h in a week.

  • This employee worked (20h + 30h) = 50 hours, so they have 10 hours of overtime.
  • The weighted average rate for the week is (20h * 15$/h + 30h * 18$/h) / 50h = 16.8$/h.
  • The weighted average overtime rate for the week is (16.8$/h * 1.5) = 25.2$/h.
  • The straight earnings for the week are (40h * 16.8$/h) = 672$.
  • The overtime earnings for the week are (10h * 25.2$/h) = 252$.
  • The total earnings for the week are then (672$ + 252$) = 924$.

Time Slices with multiple pay codes: Select the pay code that generates the highest payrate or stack premium for all applicable payroll codes.

Example: An employee is working 50 hours at 15$/h during a holiday. 

  • This employee worked 50 hours, so they have 10 hours of overtime.
  • The overtime stacked rate is (15$/h * 1.5)  15$/h = 7.5$/h.
  • The holiday stacked rate is (15$/h * 2)  15$/h = 15$/h.
  • The total stacked rate is (7.5$/h + 15$/h) = 22.5$/h.
  • The total earnings with the highest payrate option is (50h * 15$/h + 10h * 15$/h) = 900$.
  • The total earnings with the stacked premiums is (50h * 15$/h + 10h * 22.5$/h) = 975$.
Employee Payroll Schedules

Payroll Schedules can also be managed per individual guard. Follow this path to access the payroll schedule. 

Employees > Select Employee > HR Profile > Payroll and Scheduling Settings > Payroll Rate Section.

Modify the Pay Schedule field by selecting one of the options between the default and any other Payroll Schedules you may have already created. 

Note:  A pay schedule will only appear in this menu if you have already created it.

Employee Overtime Rules

Like pay schedules, you can also set overtime rules as a default at the portal level or override the defaults them per individual employee. Follow this path to configure overtime rules.

Employees > Select Employee > HR Profile > Payroll and Scheduling Settings > Employee Settings Section

Modify the Overtime Rule field by selecting one of the options. You will have access to the same choices you previously did for the Default Overtime Rules.

Previous Article 5.1 HR & Payroll: Payroll and Overtime
Next Article 6.1 HR & Payroll: Payroll Requirements​

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