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How To: Pay an Employee on a Vendor Pay Period
Background
Employee and contractor (vendor) pay statements are organized around pay periods in The Logger's Edge. Because many companies pay their employees on a different pay cycle than their contractors (i.e., vendors), The Logger's Edge allows users to set up employee pay periods that are separate from vendor pay periods. It is often the case, however, that the pay cycle differentiation is actually not 100 percent based on whether the payee is an employee or a vendor. Rather, it often depends on whether the employee is paid by the hour (or by the day) versus whether the employee is paid based on the load slip (e.g., by the weight or volume of the load). If the employee is paid by the load slip (e.g., a truck driver or loaderman), it is somewhat common for companies to pay him on the same schedule as the contractors (who are also generally paid based on the load slip).
The Logger's Edge permits users to designate certain employees to be paid based on the vendor pay cycle using a flag on the worker setup table. This flag will force any load-based payments for this employee to be processed on the vendor schedule rather than the employee schedule.
This flag only works for load-based payment. If
the employee has hourly rates or day rates or miscellaneous reimbursements (in addition to load-based rates)
for which he also receives pay, the hourly, day rate, and miscellaneous payment will be
processed on the employee pay period. In that case, the operator would
receive two separate pay statements: one for his load-based payment
(following the vendor schedule), and one for all other payment (following
the employee schedule).
Steps Involved
1. Ensure Employee & Vendor Pay Periods are Enabled (Configuration Step)
To set up separate employee and pay statements, the pay periods window must have the Pay Period Type field enabled. A Caribou support representative will need to activate this field on the pay period table through a password-protected window.
2. Activate the "Is Pay Like Vendor" Field on the Employee Table (Configuration Step)
A Caribou support representative will also need to activate the IS_PAY_LIKE_VENDOR field on the pay period table through a password-protected window.
3. Set Up Employee & Vendor Pay Periods
Under Setup | Accounting | Pay Periods, you will see a column to the right that allows you to designate a pay period as either an Employee Schedule or a Vendor Schedule. In the example here, the employees are paid every two weeks (from Monday to Sunday) and vendors are paid twice a month.
4. Set Up Employee
Under the menu item Setup | Workers | Worker Setup, set up all employees. Check the column called "Is Pay on Vendor Schedule?" for all employees (such as truck drivers) whom you want paid on the same pay cycle as your vendors.
It is important
that you set this flag properly when you first set up an employee.
Once you run the employee pay calculators and generate pay statement
information for the employee, this field will become greyed out (as it has
for vendors such as GD and KE below), and you will no longer be able to edit
it.
5. Set Up Blocks
In order to enter load slips for these employees, you must first have your blocks set up properly under Setup | Blocks | Block.
6. Enter Load Tickets
Enter load tickets for the employee under the menu item Data Entry | Loads | Load Data.
7. Run Vendor Calculator
Because the employee is set up to be paid on a vendor schedule, his pay will be processed during the Vendor calculator, even though he is an employee. Select the menu item Calculators | Vendors - Full, and select the relevant pay period. (Notice this list only shows vendor periods, not employee periods.)
8. Review the Employee Statements
Although you run the vendor calculator in the step above, you still review this employee's pay statements along with the rest of your employee's statements under the menu item Reports | Employee Statements, by Pay Period. Notice that you will see both employee schedules and vendor schedules listed in this box. When you choose the relevant vendor schedule, you will only see statements for those employees who are paid on the vendor schedule. Likewise, when you choose the relevant employee schedule, you will only see statements for those employees who are paid on the employee schedule.
