Job costing salaried employees
If a salaried employee spends time working on a job or repairing equipment, you can create the appropriate job or equipment cost records. On the Timecard tab, enter the hours the employee has spent working jobs or repairing equipment during the pay period. Also, include the hours spent in an overhead or administrative capacity.
When you compute payroll, Sage 100 Contractor calculates the gross hourly wage (employee salary / total hours = gross hourly wage). If a salaried employee works more than 40 hours in a week, the calculated gross hourly wage is lower. Therefore, to compute a gross hourly wage based on a 40-hour week, enter a timecard line for negative hours and attribute them to a dummy job (created strictly for this purpose). The dummy job allows you to enter all hours worked without affecting the costs attributed to the jobs or equipment.
Suppose Robert, a salaried administrator, worked eight hours as a carpenter on a job. He also worked 32 hours as an administrator. The first timecard line contains the job, cost code, payroll line type, hours, and Workers’ Compensation code. The second timecard line contains the payroll line type, non-job or equipment related hours worked, and the Workers’ Compensation code. When you final-compute the payroll record, Sage 100 Contractor attributes the cost of eight hours labour to the job and 32 hours labour to administration.
To job cost a salaried employee:
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1
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Open 5-2-2 Payroll Records. |
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2
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In the Employee box, enter the employee number. |
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3
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In the Period Start box, enter the date when the payroll period begins. |
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4
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In the Period End box, enter the date when the payroll period ends. |
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5
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In the Cheques Date box, enter the date when the cheque is to be issued. |
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6
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In the Cheques# box, type 0000. |
When you print the cheque, Sage 100 Contractor assigns the cheque number to the record.
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7
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If you have already issued the cheque, enter the cheque number in the Cheques# text box. |
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8
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In the Payroll Type list, click 1-Regular. |
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9
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In the Quarter box, enter the payroll quarter. |
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10
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In the Province text box, enter the tax province. |
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11
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In the Salary box, enter the salary. |
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12
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In the Timecard tab, do the following: |
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a
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In the Date cell, enter the date on which the employee worked. |
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b
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If the employee worked on a job, enter the job number in the Job cell. |
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c
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If the employee repaired equipment, enter the equipment number in the Equipment cell. |
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d
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If the job uses phases, enter the phase number in the Phase cell. |
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e
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If the employee worked on a job or repaired equipment, enter the cost code number in the Cost Code cell. |
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f
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In the Pay Type cell, enter the payroll line type. |
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g
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In the Compensation Code cell, enter the Workers’ Compensation code number. |
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h
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If you are using departments, enter the department number in the Department cell. |
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13
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Repeat step 12 for each payroll item. |
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14
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On the File menu, click Save. |
Tip: To compute payroll records correctly, enter the timecard line containing the negative hours first. This ensures deductions, benefits, or other calculations that use calculation maximums compute properly.
More resources
For additional online resources for Sage 100 Contractor products, visit the Sage Customer Portal. Use the portal to access the knowledgebase, chat online with customer support, or enter a customer support ticket.
For additional training on Sage products, visit Sage University.