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How To: Bank Time
1. Background'Banked time' refers to pay for hourly work that is performed in one pay period, but paid in a future pay period. For example, a guy might work a number of extra shifts in Fall so that he can take time off over the holidays and still be paid. It is a way of deferring compensation in order to even out the peaks and valleys over the year.
2. Steps
You first need to check the 'Enable Banked Time' in Basic Setup:
In The Logger's Edge you can specify certain time slips as being for banked time:
There is now an extra field on the time slip that allows you to specify that the automatic overtime rules do not apply. The field name is 'IS_BANKED_TIME' and it is disabled by default. If you need this flag, it must be enabled by a Caribou support representative.
When you check the 'Bank?' checkbox the 'Date for Pay' is automatically set to '01/01/1900'. By switching the date for pay to 01/01/1900, the time slip will be ignored by The Logger's Edge during the processing of time slips. Remember that the time slips that are processed in a pay period are only those whose date for pay falls within the range spanned by the pay period. Thus, the setting of the pay date to '01/01/1900' works to remove the time from the current pay period.
In the example above, the guy works 10 hours on August 2nd and the time will be banked. If he wants to use the time in December, you edit the time slip and set the pay date to be within the pay period in which you want to pay him. So, if the pay period is 12/21/2005 to 12/28/2005, you set the pay date to 12/21/2005, for example, and the pay for the August time will be shifted to December.
Special Cases:
1. An employee works 50 hours in a week and the overtime limit is 44 hours. He opts to bank his last shift of 10 hours. The employee will be paid for 40 hours of straight time in the current period.
i. Let's suppose he chooses to un-bank the time in a period where he has worked 30 hours. He will be paid 34 hours of straight time and 6 hours of overtime. Why? The 34 hours is the sum of the 30 hours in the future period and 4 hours of straight time from the prior period. The 6 hours is the overtime he would have earned had he been paid for the hours in the original period. The Logger's Edge will apply the overtime rules to the banked time 'As If' the time was originally paid when the work was performed.
ii. Let's suppose he chooses to un-bank the time in a period where he has worked 42 hours. He will be paid 46 hours of straight time (even though the overtime limit is 44 hours) and 6 hours of overtime. Why? The 46 hours is the sum of the 42 hours in the future period and 4 hours of straight time from the prior period. The 6 hours is the overtime he would have earned had he been paid for the hours in the original period. The Logger's Edge will apply the overtime rules to the banked time 'As If' the time was originally paid when the work was performed.
The overtime pay for the un-banked time does not depend on the hours worked when it is un-banked. It only depends on the overtime state of the hours when they were originally performed.
2. An employee works 50 hours in a week and the overtime limit is 44 hours. He opts to bank his first shift of 10 hours. The employee will be paid for 34 hours of straight time in the current period and 6 hours of overtime. Why? Even though the first shift is banked and not paid in the current period, it still counts against the overtime limit in the current period. Thus, even though he is not paid for the first 10 hours, the 10 hours still count against the 44 hour limit for overtime. Thus, his other four shifts are paid 'As If' he were paid for the first 10 hours, even though he is not.
i. Let's suppose he chooses to un-bank the time in a period where he has worked 30 hours. He will be paid 40 hours of straight time. Why? The 40 hours is the sum of the 30 hours in the future period and 10 hours of straight time from the prior period. The prior period status of the hours was straight time, so they stay straight time in the un-banked period.
ii. Let's suppose he chooses to un-bank the time in a period where he has worked 42 hours. He will be paid 52 hours of straight time (even though the overtime limit is 44 hours) and NO hours of overtime. Why? The 52 hours is the sum of the 42 hours in the future period and 10 hours of straight time from the prior period. There is NO overtime because the hours were straight time hours in the original period. Again, The Logger's Edge will apply the overtime rules to the banked time 'As If' the time was originally paid when the work was performed.
Special Grid.
In The Logger's Edge you can see all your banked time. Navigate to Date Entry | Time Slips | Employees | Banked Time (a new menu item, which is enabled through the Basic Setup banked time checkmark):
This selection will bring up a grid with all your time slips with a pay rate of '01/01/1900'. You can then edit the pay date right in the grid to move the time to the pay period you want.
If you un-bank the
time by switching the pay date, you do not need to change the 'Bank?'
flag. As a matter of fact, I would recommend leaving the 'Bank?' flag
checked so that you know that a given slip was banked at one time, when it
has been subsequently un-banked.
After time is unbanked, you need to run to run the employee calculator for the pay period that contains the 'date for pay' on the time slips. For example, if the date for pay is set to 7/21/2004, you need to run the employee calculator that contains that date.
Remember, when you run
the calculator for the new pay period, the overtime rules will use the hours
worked in the period when the worked was performed in order to compute overtime
-- not the hours performed in the period for which the calculator is being run.
