 |  |
How To: Pay a Vendor on an Employee 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 person is paid by the hour (or by the day) versus whether the person is paid based on the load slip (e.g., by the weight or volume of the load). It is sometimes the case that if a non-employee worker (e.g., a self-employed person) is paid hourly or with a day rate, he may be paid on the same schedule as the employees (who are also generally paid hourly or day rates).
The Logger's Edge permits users to designate certain non-employee workers (i.e., vendors) to be paid based on the employee pay cycle using a flag on the worker setup table. This flag will force any time slip or production slip payments (such as day rates) for this worker to be processed on the employee schedule rather than the vendor schedule.
This flag only works for
processing time slip and production slip payment. If
the worker has load-based payment or miscellaneous reimbursements for which he also receives pay, the hourly, day rate, and miscellaneous payment will be
processed on the vendor pay period. In that case, the operator would
receive two separate pay statements: one for his hourly and production
slip pay (following the employee schedule), and one for load-based payment
and miscellaneous payment (following
the vendor 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 Employee" Field on the Employee Table (Configuration Step)
A Caribou support representative will also need to activate the IS_PAY_LIKE_EMPLOYEE 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 Non-Employee Worker
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 Subcontractor (Vendor) Time Slips (and/or Production Slips)
Enter time slips (if relevant) for the non-employee worker under the menu item Data Entry | Time Slips | Subcontractor | Enter Slips.
Enter production slips (if relevant) for the non-employee worker under the menu item Data Entry | Production Slips | Subcontractor | Enter Slips.
7. Run Employee Calculator
Because the vendor (i.e., non-employee worker) is set up to be paid on an employee schedule, his pay will be processed during the Employee calculator, even though he is a vendor. Select the menu item Calculators | Employees - Full, and select the relevant pay period. (Notice this list only shows employee periods, not vendor periods.)
8. Review the Vendor Statements
Although you run the employee calculator in the step above, you still review this vendor's pay statements along with the rest of your vendor's statements under the menu item Reports | Vendor Statements, by Pay Period. Notice that you will see both employee schedules and vendor schedules listed in this box. When you choose the relevant employee schedule, you will only see statements for those vendors who are paid on the employee schedule. Likewise, when you choose the relevant vendor schedule in this list, you will only see statements for those vendors who are paid on the vendor schedule.
