Jump to a section: Create a Flag Pay Task Type | Create Service Product Codes | Create Flag Pay Types | Configure Worker Records for Flag Pay | Piecework Settings for Flag Pay
Adding flag pay to the labor management system of EBMS requires configuration of the following modules:
- Tasks & Work Orders Module: The optional tasks and work orders module is used to set the predetermined flag rate for tasks or work orders.
- Labor Module: Flag pay types must configured within the labor module.
- Piecework Payroll: This feature is needed to calculate flag pay properly and handle overtime pay according to state labor laws. Flag pay is a type of piecework pay.
Configuring Flag Rate Processing in EBMS
Create a Flag Pay Task Type
Go to the Labor > Task Options > Task Types tab to view the task types.
Create a task type for flag rate projects. Create a single Flag Rate Service type as indicated by the arrow or set a series of task types (see image above).
To create a new type, click the New button and fill out the fields for a new type. (See image below.)
To edit an existing task or work order type, highlight a Type in the list and click the Edit Defaults button to set the following settings:
- Flag tab: Select the Update actual time from billable time option by checking the box. This option identifies the pay method within the work order as Flag pay.
- Billing tab: Uncheck the Update billable time from actual time setting as shown below:
Review Creating Task Types and Defaults for instructions on the important default settings, such as the Schedule, Work Code, Billing, and Advanced tab settings.
Create Service Product Codes
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Create service product codes for individual service types that contain the predetermined time required for each service. Review Attaching a Task to a Service Item for instructions.
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EBMS includes tools to create a large number of service codes from a service catalog and keep the settings current. Review Multiple Vendor Catalog Overview for options to import data, including service rates, from a vendor catalog.
Create Flag Pay Types
Add the Flag Pay Pay Type by selecting Labor > Labor Options > Pay Types tab as shown below:
Click on the New button to add Flag pay types if they do not already exist and enter the following information:
- Enter a pay type Description for the flag pay such as Flag in the example above.
- Set the Base setting to Hour.
- Set the Type setting to Piecework.
- Enable the Include this type in overtime calculations option since flag pay is included in the optional overtime calculations and click OK.
It is recommended that you repeat the same settings to create an Overtime Flag Pay type unless overtime is never paid.
- Create a Description for the overtime flag pay type, such as "FlagOT" or another name that is easy to identify on the employee's pay stub.
- Set the Base setting to Hour.
- Set the Type setting to Piecework similar to the standard flag pay rate.
- Unlike the standard pay rate, disable the Include this type in overtime calculations option and click OK.
Review the Pay Types article for more details on pay type configuration.
Configure Worker Records for Flag Pay
Insert flag pay types into the Pay tab of all workers that may be paid flag pay.
Insert the flag and flag overtime pay types into the Pay Rates table found on the worker record Pay tab as shown above. The recommended method is to set the flag pay type for all workers or for an entire worker group. Review Setting Worker Defaults for instructions on setting pay type defaults for all workers or a category of workers.
The recommended Default Work Code setting is to keep the codes blank and set the work code within the work order. Create a flag pay work code only if the flag pay costs must be posted to a unique General Ledger account. Review the Work Codes article for more details on creating work codes.
Review Changing Worker Information for other details on configuring worker record settings.
Piecework Settings for Flag Pay
Enable both Piecework payroll options, since flag pay is a type of piecework pay and often subject to state labor laws. Select Labor > Labor Options > General tab from the main EBMS menu to open the following dialog:
Review the Piecework Payroll Processing Overview for more details on the piecework payroll options. For general Labor module configuration and setup, go to Labor and Payroll Settings.