Certain employers may be required to pay employees that are ‘engaged to wait’ for their waiting time and employees may be paid for travel time between jobsites. Different uses of time, shifts, or billable projects may require specialty codes across multiple cost centers. How are you supposed to calculate these payroll complexities? Some GP Payroll add-ons can help.
As discussed in “FLSA: When are waiting time and travel time considered work time?,” posted by Kevin C. McCormick on HR.BLR.com, a moving company was sued by former employees under the Fair Labor Standards Act (FLSA) for unpaid wages and overtime. These employees were primarily responsible for loading and unloading trucks for the commercial moving and storage company and would often wait at the warehouse for the van service to take them to a jobsite. Should the employees perform tasks while at the warehouse, they would be compensated for that activity and time. If employees were simply waiting for transport, the court ruled that no reasonable jury would award compensation for waiting at the warehouse or for travel time to the jobsites. However, once at a jobsite, employees were ‘engaged to wait,’ which is a compensable activity.
While this court case is one example of whether travel time and waiting time is compensable, it brings to light an example of multiple payroll codes and associated costs. Employees may be asked to perform different tasks that require different compensation, which can become complicated when processing payroll. You can now add Employee Accounts and Splits to your Microsoft Dynamics® GP Payroll solution to streamline this task. As employees work across multiple departments or client projects, you can split allocations by department, position, pay code, or general ledger account. As time is allocated to multiple cost centers, associated tax and benefit expenses are also automatically distributed appropriately, including period-end, FUTA, SUTA, and Worker’s Comp expenses. Similarly, when employees work overtime, you can automatically calculate overtime according to your internal rules, FLSA, and other state requirements. With the Overtime Hours Rules add-on, you can create rules based on employee, department, position, or other unique variables.
Processing payroll grows complicated as employees work overtime or across multiple cost centers. Contact Integrity Data to learn more about calculating and processing payroll with greater efficiency using these powerful add-on solutions.
By Integrity Data, a Microsoft Dynamics GP ISV out of Illinois