Payroll - setting minimum and maximum hours for an employee

This article includes the following topics:

  • What are Minimum Values
  • What are Maximum Values

What are Minimum Values

Setting a minimum value for an employee will make the system automatically pay them up to this value. E.g. if an employee is set to a minimum of 38 hours, and only works 30, the system will add an extra 8 hours.

What are Maximum Values

Setting a maximum value for an employee will make the system restrict their pay to the set maximum hours. This means that a user will not be paid for any additional hours after this value has been reached unless overtime rates have been specified in the system.

Why is this important

The minimum and maximum values allow organisations to ensure that employees are paid correctly and in accordance with their employment agreement. 

How to set Minimum Values

1. Click Organisation

2. Click Users

3. Click the employee (I clicked Joe Bloggs)

4. Click Payroll

5. Next to Award Pay Group click Change

6. If the employee is not already, assign them to an award, position, award pay group and hourly rate

7. Click Override employment type values for user

8. In the example above, set the minimum value to 38 to always pay the employee 38 hours not matter how much they work.

9. Click Submit

Notes:

Setting the minimum value through the method above will apply it to the current pay period. If your pay period has finished, e.g. it is Monday and your pay period is the Sunday just past, you will need to apply this value on the payroll report by clicking 'Change' next to 'Award Pay Group'

The hours that are added to make up to the minimum value come from the payroll category that is marked as 'Primary' in the employees pay group. In general, this is the base hourly pay or standard 1x code. If you require it to use a different code, please email support@easyemployer.com.

Setting Maximum Values

Setting a maximum value for an employee will make the system automatically limit their pay to this value.  E.g. if an employee is set to a maximum of 40 hours, and works 45, the system will cut the hours at 40 and throw the 5 extra hours into overtime. The overtime is set according to your award.  'No Overtime' pay groups might have been already configured for you. If you require a pay group with no overtime, please email support@easyemployer.com.

How to set Maximum Values

1. Click Organisation

2. Click Users

3. Click the employee (I clicked Joe Bloggs)

4. Click Payroll

5. Next to Award Pay Group click Change

6. If the employee is not already, assign them to an award, position, award pay group and hourly rate

7. Click Override employment type values for user

8. In the example above, set the maximum value to 40 to limit Joe's hours to 40. He has also been put onto the Full Time (No Overtime) award pay group meaning that any hours over 40 will not go to an overtime code. In some awards this is set as 'unmatched' so you can see how many extra hours the employee has done on the payroll report. Unmatched hours do not flow through to payroll. 

9. Click Submit

Notes:

Setting the maximum value through the method above will apply it to the current pay period. If your pay period has finished, e.g. it is Monday and your pay period is the Sunday just past, you will need to apply this value on the payroll report by clicking 'Change' next to 'Award Pay Group'

The overtime value that you set here will throw all additional hours into 'Overtime'. Overtime is normally set as per your award. If you require a 'No Overtime' award pay group, please email support@easyemployer.com.au

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