Payroll Entitlements
Entitlements are a way for you to track time off that
employees are entitled to. You can create up to 5 default entitlements
that will apply to all new employees. If you want to add a newly-created
entitlement to an existing employee record or change parts of an entitlement
for specific employees, you can do so in the employee records.
Entitlements do not affect your books in any way, they
are intended strictly for keeping track of time. When you are processing
a paycheque for an employee, you can
review, edit, and release time on the Entitlements
tab. Because entitlement time calculations are based on days, the numbers
in the paycheque window represent days, not
hours.
Entitlements are defined in company-wide settings, can
be individually edited in employee records, and are calculated when you
process a paycheque.
Default entitlement settings
These options control the default settings for
entitlements. To change them, open the Setup
menu in the Home window, select Settings,
Payroll, and then Entitlements.
The Number of Hours
in the Work Day. This number tells Sage 50 Accounting how long an employee's
work day is and is used to convert entitlement hours earned to Days Earned
in the paycheque window.
Name. The name
of the entitlement.
Track Using % Hours Worked.
This number determines the percentage of hours worked that are accrued
for an entitlement.
Maximum Days. The
maximum number of days that an employee can accumulate for an entitlement.
Clear Days at Year-end.
Controls whether employees can carry entitlement days over into the next
fiscal year.
Entitlements in employee records
Employee entitlement options are the same as
the company-wide settings, except that they control the entitlements for
one employee. To change an employee's entitlements, open the employee
record and click the Entitlements tab.
There is an additional column in the employee
records:
Net Days Accrued.
This column shows you how many days an employee is currently entitled
to. Unlike the other fields on this tab, Net Days
Accrued cannot be edited.
Note: There must
be a value in the Hours Per Period column
for any entitlement-earning incomes on the employee's Income
tab (for example, Regular), in order for entitlements to be calculated
for you.
Entitlements in the paycheque window
The Entitlements
tab in the paycheque window shows you the days earned for the current
period. It also allows you to release days for the current pay period.
If you are processing a payroll cheque run,
you can view the entitlement details for an employee by viewing the Entitlements tab in the employee's Cheque Details.
Hours Worked This Period. The number of hours the employee worked in the
current pay period.
Sage 50 Accounting uses the Hours
Per Period number from the Income
column of the employee record for this number. You can edit this number
on the on the paycheque's Entitlements tab
and it will affect the calculations. Changes to the Hours
column on the paycheque's Income tab, however,
do not affect entitlement calculations.
Days Earned. The
number of entitlement days the employee has earned in the current pay
period. This number is calculated from the Hours Worked This Period and the Track
Using % Hours Worked and The Number of Hours in the Work Day values from the Entitlements tab in the employee record.
Days Taken.
The number of entitlement days the employee has taken in the current pay period. If you record an amount in this column, this change will be reflected in the Net Days Accrued
on the employee's record.
An explanation of entitlement
calculations
When an entitlement is calculated, the Hours worked This Pay Period (in the
paycheque
window) is multiplied by Track Using % Hours Worked
to determine the number of hours earned for the entitlement. The earned
hours are then divided by the number of hours in the employee's work day
to determine the number of Days Earned for
the pay period.
For example, you have created an entitlement
called Special Days and entered the following values in Beck Bristow's
employee record:
| The Number of Hours in the Work Day |
Employee record - Entitlements tab |
8 |
| Track Using % Hours Worked |
Employee record - Entitlements tab |
10.00 |
| Hours Per Period |
Employee record - Income tab |
100 |
10% of the 100 hours worked in the period earns Beck 10 hours Special Days entitlement. Dividing this number by the number of hours in Beck's work day results in 1.2 Days
Earned on the Entitlements tab in the paycheque window. If these days are
not released, they will be added to Beck's Net Days
Accrued.
What do you want to do?
Set
up a payroll entitlement