Your user's salary is important in the most basic sense - the vast majority of people wouldn't do their jobs if they weren't paid for them. Let's be honest though, calculating their salary can be a nightmare! Make one mistake and you could pay your users the wrong amount and need to do payroll again. You might even overpay them, costing your business thousands of dollars.
Does this sound familiar? Here at Connecteam, we can all relate to the headache payroll can create. For this reason, we have created Pay Rates. These, allow you to set the rate at which each user in your company is paid. Not only that, but you can see the exact salary they should be getting paid. No more late-night calculations or redoing payroll. Set your pay rates and execute your payroll flawlessly.
In this article we will go over
Now, let’s get started on setting this up!
Setting Up the Pay Rate
To activate the Pay Rate feature head over to the General Settings, to the Pay Rate Settings tab, and make sure the Enable Pay Rates button is toggled on.
After this be sure to set your pay rate currency and set your admin permission which we will go over below.
Pay Rates Admin Permissions
Permitting your Admins to set users' pay rates can be a scary thing, after all this is real money we are talking about! For this reason, we have created a comprehensive set of admin permissions, ensuring that you can control exactly who can adjust the pay rate.
The admin permissions have two options:
View: This option allows admins to only view the user's pay rate and estimated salary.
View and Edit: This option allows admins to not only view but also add or update the user's pay rate. Please note that all owners are automatically added with this permission.
To add an admin and set their permissions, go to the general settings, to the Pay Rate Settings tab, select the add button, select your admin, and set their permissions. In the example below you can see that I added the admin Michael with view-only permissions.
Pro tip: It is important to note that the users which the admin will be able to see or update are based on the Manager Permissions and the Smart Groups they are an administrator of. Be sure to go over these features if you are not familiar with them!
How to Set a Users Pay Rate
Now that you have enabled the pay rate, let's go over how to set your user's pay rate step by step
Step 1: Navigate to the Users tab and enter the relevant user's profile
Step 2: Enter the payroll tab and select set Pay Rate.
Step 3: Choose if the pay rate is hourly, monthly, yearly, enter the amount, and set the effective date.
In the example below you can see that we set the pay rate hourly, to $25 an hour, and to be effective on today's date.
Now that you have activated pay rates and set your user’s pay rate, let's take a look at how this looks in timesheets because this is really where the magic happens!
The first thing we need to do is enable the Show Pay Rates option in our time clock.
How to Enable Pay Rates in the Time Clock?
To set this up go to the Time Clock>Settings>General Tab and enable Show Pay Rates. You have the option to allow either qualified admins or qualified admins and users to view the calculated pay.
How Do Pay Rates look in the Time Sheets?
When entering your timesheets you will be able to see the total amount you are paying both your salaried and hourly employees for the current payroll period.
This can be seen in the top right-hand corner.
Now let's go over the differences between hourly and monthly/yearly salaried users and how these look in the timesheets.
Hourly rates are calculated on an hourly basis. The calculated salary is based on the number of hours your users worked x their pay rate.
In the example below you can see Jonny worked 80 hours at a base rate of $25 per hour making his total pay $2,000.
Monthly rates are calculated by dividing the monthly rate by the number of payroll periods you have set. For example, if you have set two pay periods a month, then the monthly pay rate will be divided by two.
In the example below you can see that Mary Jane is on a monthly salary of 5,850. Her timesheet shows a calculated pay of $2,704.84 because her company has set 2 pay periods per month.
Pro tip: Even if your salaried employees never clock in there will still be calculated pay. Notice above Mary Jane never clocked in, but still has a calculated pay. This occurs because the pay of salary employees is not based on the number of hours worked, rather on the pay rate set in their user profile and the number of Payroll periods defined. To learn more about setting Payroll Periods check out this article.
Yearly rates are calculated by dividing the yearly rate by the number of times you are paying your employee across the year.
In the example below you can see Michael is paid a yearly salary of $250,000, but his salary is $20,833.33 because his company pays on a monthly basis.
Pro tips: Do not be alarmed if when adjusting the date range, the calculated pay of your salary user changes. It just means, that their pay is being recalculated based on the number of days you have set.
Pay Rate FAQs
How will the pay rate look for view-only admins?
Admins with view-only permission will be able to see the pay rate in the Users profile, but not be able to update it.
How will the pay rate look for admins without permission?
Admins without permission, will not see the pay rate. Instead they will see a message stating permission required.
What do the users see regarding the pay rate?
If you have enabled the option for users to see their pay rate as shown above, then the users will also be able to see thier calculated pay, inside of their timesheets.
Please note that this capability is currently only visible in a Dashboard view.
Are overtime hours also added to the calculated salary?
Yes, they are. In the example below you can see that George worked 45 hours a week and his company pays weekly overtime at a rate of 1.5 after 40hours. Therefore he was paid 5 hours of overtime, and this was included in his calculated pay. If you are not familiar with the overtime settings take a look at our Overtime article.
Can the calculated pay be exported and how will it look?
Yes, of course! Like everything in the time clock calculated pay is also included in the Timesheet exports.
Can I Set Users' Pay rates in Bulk?
Yes, you can. To update pay rates in bulk enter the Users tab and select the relevant Users whose pay rate you want to update and the action tab will appear at the top. Select from the drop-down the set pay rate options, set the Employee pay to be per an hour or salary, set the wage, and the effective day and press save. That's it! You have now set everyone's pay rate.
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