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:
All of these can be found in Settings > Payroll > Payroll supplement > Create. 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 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 a weekend rate to the system. Specifically, for the hours worked on a Saturday or a Sunday, an extra 20kr per hour worked needs to be added.
First, choose Normal Supplement from Settings > Payroll > Payroll supplement > Create.
Give this supplement a name and a description, so it will be easily identifiable in the future.
As you want to add an extra 20kr. per hour, so the Hourly Wage needs to change to ‘kr. monetary’ (currency value depending on your portal).
The start type should be left as ‘Hour’ and for the Start and End time enter ’00:00’ as you 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 can be set to ‘Weekend’, so it can be easily identifiable on the payroll export. Add 20 into the payroll box to give 20 Kr supplement. The days should be Saturday and Sunday, with no Valid from or Valid to date set.
You can then specify who should receive this supplement, through Employee groups and Employee types. For this example, the supplement should be applicable to everyone, so All is selected.
Next, you can then choose if the supplement will apply for employees with a monthly salary or if it can be influenced by breaks. You can also define if the payment should be enforced over other supplements 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 and implemented regardless of other supplements.
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, employees will be supplemented in a ‘Time and a Half’ manner, so 150% of their rate, when they work over 40 hours in a week.
Similar to the Normal supplement, give this supplement a name and a description, so it will be easy to identify in the future and in Payroll reports.
The ‘Hourly Wage’ should be changed to a percentage, ‘%’, as you 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 on any given day.
The ‘From’ field related to Hours (in the Payment period) would be 40 in this case, as you want all hours over 40 to have the supplement attached. Then set the ‘To’ hours to a maximum ( in this case, 5000), so all hours of the week will be included in the calculation.
Again, 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 employees 250% of their wage, for the applicable hours.
This supplement should be affected by breaks so select the option. 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, when an employee works over 9 hours in a single day, they will receive double the pay (200%) for the extra hours.
Choose a Day-based Supplement from Settings > Payroll > Payroll supplement > Create.
The name and description should be something intuitive, as they will help identify this supplement in the future and in Payroll reports.
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 (overtime threshold) and the ‘To’ hours should be set to a maximum (in this case, 24).
Enter a salary code to make this easier to spot in the payroll export and set the Payroll percentage to 100%, as you want to supplement the pre-existing rate with 100%.
⚠️ Do not enter 200, as this would actually give employees a 300% rate increase 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.
Contract rules supplement
Use Contract rules supplements if you were manually calculating and paying for overtime. For example, you can set a contract rule for employees that calculates and pays them automatically if they exceed a certain number of hours.
In the example below, a Contract rules supplement is being applied to all employees utilizing the Intern 80 Hrs contract rule whereby their maximum monthly hours should be 80. Exceeding that 80 hours limit would give them 25kr extra pay on top of their hourly rate.
Choose a Contract rules supplement from Settings > Payroll > Payroll Supplement > Create.
Select the contract rule that you wish to create the supplement for, in this example, Intern 80 Hrs.
The name and description should be something unique, as it will help identify this supplement in the future and be visible in the Payroll reports.
Since this will be a fixed increment, select monetary value for Hourly wage. You can also select % to give a percentage based increment.
In this example, for the supplement to kick in after working 80 hours, set the from to 0 hours worked and To 20 hrs paying 25kr extra. It is important to note here that the From in period is a value in hours after which the supplement is supposed to be applied. The To value is the maximum number of hours until which the supplement should be applied for. So any hours beyond 80, in this case the extra 20 hours, would be given a 25Kr supplement on top of the regular pay.
You can then apply this to any employee who falls under this contract rule. The payroll report would show the contract rule applied when the employee exceeds their 80 scheduled hours threshold. You can see this supplement applied when you export the payroll report from Payroll > Payroll export > Prepare report.
Still have questions? Reach out to our support team via chat if you need help regarding this feature.
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