Payroll supplements are an automatic way to add extra payments to shifts or parts of shifts. This can be useful for setting overtime rates, weekend rates, or night rates.
There are multiple types of supplements you can use in Planday, most commonly used:
- Weekly, and
- Daily supplements.
All of these can be found in the Settings > Payroll Supplements > Create Supplement. These will provide the flexibility you need to add your overtime rates to your Planday system.
Keep in mind, that as soon as you add a payroll supplement it might be applied to all the hours in your Schedule unless you specify a time range. Make sure to take this into account before you do a payroll run.
Below are some of the most commonly used supplements and how to set them up. Since they are only examples for each type of supplement, you might need to tweak them to fit your business' needs.
Normal supplements are best used when rates are affected by specific times in the day. In this example, you will be looking at using a Normal supplement to add in a Weekend Rate to the system. Specifically, for the hours worked on a Saturday or a Sunday, an extra 50p per hour worked needs to be added.
First, we'll choose Normal Supplement from Settings > Payroll Supplements > Create Supplement.
We'll give this supplement a name and a description, so it will be easily identifiable in the future.
We want to add an extra 50p per hour, so the Hourly Wage needs to change to ‘£ monetary’. You will see how to use the other options later, in different examples.
The start type should be left as ‘Hour’ and for the Start and End time, we will enter ’00:00’ as we are looking at applying this supplement to any hour worked on the weekend.
If you have a specific time period in mind, you could enter this in here.
The salary code will be ‘Weekend’, so it can be easily identifiable on the payroll export, with 50p, or 0.50, added into the payroll box. The days should be Saturday and Sunday, with no Valid from or Valid to date set.
We can then specify who should receive this supplement, through Employee groups and types. For this example, the supplement should be applicable to everyone, so All is selected.
Next, we can then choose if the supplement will apply for employees with a monthly salary or if it can be influenced by breaks, if its payment should be enforced or if this supplement should consider over midnight hours, for shifts extending into the next day).
For this example, the supplement is affected by breaks.
The finished set-up for the supplement will look like this:
Week based supplements are useful when you want to create a supplement based on the number of hours someone has worked in a week (e.g. overtime rates).
In this example, we will be supplementing employees in a ‘Time and a Half’ manner, so 150% of their rate, when they work over 40 hours in a week.
The Week-based Supplement menu looks like this:
Similar to the Normal supplement, we'll name and give this supplement a description, so it will be easy to identify in the future.
The ‘Hourly Wage’ should be changed to a percentage, ‘%’, as we want the supplement to be relative to the wage attached to the employee group.
The payment period can be set to 00:00 – 00:00, to include any hours worked in any given day.
The ‘From’ field related to Hours (in the Payment period) would be 40 in this case, as we want all hours over 40 to have the supplement attached. Then we'll set the ‘To’ hours to a maximum ( in this case, 5000), so all hours of the week will be included in the calculation.
Again, we will enter a salary code to make this easier to spot in the payroll reports and set the ‘Payroll’ figure as 50, to supplement the wage (already given) with an extra ‘half’.
Do not enter 150%, as this would actually give people 250% of their wage, for the applicable hours.
Then, this supplement should be affected by breaks. When configured, a week-based supplement will look like this:
Day based supplements can be used when you want to supplement any time worked over a certain number of hours, per single day of work.
For this example, we will use the idea that, when an employee works over 9 hours in a single day, they will receive double the pay (200%) for the extra hours.
We'll choose Day-based Supplement from Settings > Payroll Supplements > Create Supplement.
The name and description should be something intuitive, as they will help us find this supplement in the future.
Then, the Hourly Wage option should be a percentage, ‘%’ and the payment period will be 00:00-00:00, for any hours worked within the day, similar to the Week-based supplement.
The ‘From’ hours should be set to 9 ( our overtime threshold ) and the ‘To’ hours should be set to a maximum (in this case, 24).
We'll enter a salary code to make this easier to spot in the payroll export and
set the Payroll percentage to 100%, as we want to supplement the pre-existing rate with 100% (so, double it).
Do not want to put in 200, as this will effectively give the employee a 300% rate for the overtime hours.
This supplement will be affected by breaks, have enforced payment, and be allowed over midnight (for shifts that go past midnight and into the next day).
When finished, the supplement will look like this:
Please note that payroll supplements will be applied backdated (from the beginning of the payroll period). We recommend that you set them up when a new payroll period starts or very soon after.