How Vantagepoint Determines an Employee's Pay Rate

The pay rate that is used for payroll processing for a particular employee depends on several settings, such as whether or not your enterprise has enabled pay rate tables, the payroll rate method established for a given project, the payroll rate method established for a given employee, and whether an employee is hourly or salaried.

For hourly employees, rates entered in a pay rate table are used to override the default rates for both regular and overtime pay. For salaried employees, however, entries in pay rate tables override only the calculation of overtime pay.

The following overview shows the logic that Vantagepoint uses to determine the employee pay rate during a payroll run.

  1. Vantagepoint checks whether or not you have configured, set up, and assigned a pay rate/category/code table to a project.
    • If you are not using pay rate tables (the Enable Pay Rate Tables option to No in Settings > Accounting > Labor Options), Vantagepoint retrieves the pay rate from the Pay Rate field on the Payroll tab of the Employees hub for each employee.
    • If you have configured the feature, Vantagepoint proceeds to the next check (step 2).
  2. For each project to which an employee charged time, Vantagepoint checks the pay rate method specified on the Accounting tab of the Projects hub.
    • If the Pay Method option is set to From Employee Pay Rate in the Cost and Pay Rates section of the Accounting tab on the Projects hub form, Vantagepoint uses the pay rate specified for the employee in the Employees hub record.
    • If another pay rate method (From Labor Rate Table, From Labor Category Table, From Labor Code Table) is selected, Vantagepoint proceeds to the next check (step 3).
    • If no table is selected at any level of the project's work breakdown structure, Vantagepoint checks the Employees hub for a pay rate table (proceed to step 4).

    Vantagepoint starts by looking to the lowest level of the project's work breakdown structure and works up from there (task, phase, project), and then uses the first pay rate table found.

  3. Vantagepoint determines if the employee is associated with the table specified in the Rate Table field on the Accounting tab of the Projects hub form and the Pay Method field is set to From Labor Rate Table. The employee may appear in the table itself, or be associated with the table via a labor category or labor code.
    1. If the employee does appear in the table set in the Projects hub, Vantagepoint compares the transaction dates of the employee's posted time transactions to the effective dates in the payroll rate table. For each transaction, Vantagepoint uses the rate with an effective date on or after the transaction date. If no effective dates match the transaction dates, Vantagepoint uses the entry with a blank effective date. If no blank effective date entry exists for the employee, Vantagepoint uses the rate specified on the Payroll tab of the employee's Employees hub record.
    2. If the employee does not appear in the table specified in the Projects hub, Vantagepoint looks to the Payroll tab of the Employees hub to see if a pay rate table is established there for the employee.

      Each pay rate table can have one blank effective date entry per employee, category, or code. This is used as the default override pay rate, for project's using this pay rate table.

    3. Vantagepoint checks the pay rate method specified on the Payroll tab of the Employees hub.
      • If None is selected in the Pay Rate Table Method field on the Payroll tab of the Employees hub, Vantagepoint uses the pay rate entered on the Payroll tab of the Employees hub for the employee.
      • If another pay rate method (From Labor Rate Table, From Labor Category Table, From Labor Code Table) is selected, Vantagepoint compares the transaction dates of the employee's posted time transactions to the effective dates in the payroll rate table. For each transaction, Vantagepoint uses the rate with an effective date on or after the transaction date. If no effective dates match the transaction dates, Vantagepoint uses the entry with a blank effective date. If no blank effective date entry exists for the employee, Vantagepoint uses the rate specified on the Payroll tab of the employee's Employees hub record.

Each pay rate table can have one blank effective date entry per employee, category, or code. This is used as the default override pay rate, for projects that use this pay rate table.