Handling salaried staff members can be confusing because of the complexities of labor percentages and the variability of salaried wages when analyzed by hour. TimeForge can help you accurately track your labor percentages even if you have salaried employees by simply changing a couple of settings.
Though putting an employee on salary can have major benefits for both your business and for the employee, there are some analytical problems that are related to salaried employees. Labor percentages, which compare the budgeted (scheduled) cost of labor to the actual (clock ins/outs) cost of labor, can be complicated by salaried employees because the amount they get paid each pay period can fluctuate due to vacation time and other changes in work time. Salaried employees can also make daily labor reports complicated because their fluctuating hourly wage is so variable.
You need to decide whether you want to see salaried employees’ hours in your labor percentages. You can choose not to see them at all, or your can modify the way that you see them so they are closer to being accurate.
Consider whether your salaried employees clock in when they are at work.
- (1.) If they do clock in, you can set their pay rate as an hourly rate instead of as a salary. This way, hourly wages would always be a set amount, so you wouldn’t need to worry about a surprise high cost in your labor percentages.
-If your salaried employees don’t clock in, you can (2.) set the hourly rate to $0, or (3.) change your option settings to automatically copy a salaried employee’s scheduled hours to his or her attendance.
Below are instructions for all of these options.
Go to the “Employees” page.
Go to the “Employees” page.
- Log in
- Hover over the “Employees” tab
- Click “Employees”
Option 1: Track pay rate hourly.
Scroll down to the Employee Positions section. The position(s) that the employee works should be checked and his or her pay rate should be set as “annually”. An Hourly Rate will automatically be calculated. Enter the calculated Hourly Rate into the Fixed Rate box. Now, scheduled shifts will always be calculated by the hourly rate input, helping you to better understand and more accurately analyze your labor percentages and attendance. Remember to click Save (at the bottom of the page) when you are finished!
Option 2: Salaried staff don’t clock in or track costs: Set fixed rate to $0
If your salaried employees do not clock in and out when they start or end a shift, and you don’t care to track their costs, you can simply set their Fixed Rate to $0.00. Follow the same steps as Option 1, but simply enter 0 into the Fixed Rate box.
Remember to click “Save” at the bottom of the page when you are finished!
Option 3: Automatically copy scheduled attendance as actual attendance.
It’s easy to automatically copy an employee’s scheduled hours to his or her attendance hours. Simply navigate to the Employee tab of the Employee Information page and check the “Auto-copy schedule for staff member?” box by clicking on it. Now, your salaried employee’s attendance will be automatically filled in so that you can more accurately track your labor percentages.
Remember to click “Save” when you are finished!