What is Pay Basis?
In the states of Minnesota and Washington, the government requires you to indicate the method of Pay Basis for the employee’s earnings statement.
Valid Pay Basis methods include:
- Commission
- Day
- Hourly
- Hybrid/Other
- Piece Pay
- Salary
- Shift
- Weekly
Links to Relevant Statutes:
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Minnesota: https://www.revisor.mn.gov/statutes/cite/181.032
- Washington: https://app.leg.wa.gov/WAC/default.aspx?cite=296-126-040
How to configure Pay Basis
Pay Basis can be configured in one of four places in Classic. The four places where you can configure Pay Basis are:
- Order
- Assignment
- Employee
- Time Entry
Order
Order > Assignment > More Info tab
Assignment
Assignment > Detail > More Info tab
Employee
Employee > Assignment > More Info tab
Time Entry
Time Entry > Card View > Snapshot tab
- The Pay Basis at the Order level is only used when assigning a New Assignment to the Order.
- If the Pay Basis is set up at the Assignment level, this will update the Pay Basis fields under Employee and Time Entry > Card View.
- If the Pay Basis is set up at the Employee level, this will update the Pay Basis fields under Assignment and Time Entry > Card View.
- If the Pay Basis is set up at the Time Entry > Card View level, this will NOT update the Pay Basis fields under Assignment or Employee. However, this will override the Pay Basis that is displayed on the employee’s statement for the current Accounting Period.
Examples
Updating Pay Basis
To set up a Pay Basis for an employee in Minnesota with the value of "Weekly":
Navigate to Assignment > Detail > More Info tab and select "Weekly" from the Pay Basis dropdown; then press Tab to save that value.
When you navigate to Employee > Assignment > More Info tab you’ll see that the Pay Basis was populated with the value you entered in Assignment.
When you navigate to Time Entry > Card View > Snapshot tab you’ll see that the Pay Basis was populated with the value you entered in Assignment.
Once you process pay for the employee and open the paycheck, you’ll see the "Weekly" Pay Basis value displayed on the paycheck stub portion.
Using the same configuration in the example above where Pay Basis equals "Weekly," the following steps illustrate how to override the value:
Navigate to the Time Entry > Card View > Snapshot tab and select the Pay Basis value you wish to override from the dropdown; Tab off the field to save the entry. For example, "Piece Pay" can be chosen.
Once you process pay for the employee and open the paycheck, you’ll see the overridden value of "Piece Pay" Pay Basis displayed on the paycheck stub portion.
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