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Hourly pay calculation

Summary

Hourly pay in a pay cycle uses recorded hours. Payroll looks at attendance logs first. If there is no attendance for that slice of the period, it uses approved timesheet entries linked to project tasks. On Salaries, hourly people show Payrate and Total Worked Hours. Income for the cycle is Payrate × Total Worked Hours, plus any other income.

In this article

  • Before you begin
  • Opening the pay cycle
  • Check timesheet and attendance warnings
  • Reviewing Payrate and Total Worked Hours
  • How hours are chosen
  • Frequently Asked Questions (FAQ)

Before you begin

You must have an active Payroll add-on to access and use Payroll features.

You need Company Money access, View Pay Schedules, and Start Payrun.

Employment Pay Type must be Hourly.

Timesheets must be approved before they can be used in payroll.

People paid by the hour should have a pay rate. Project pay rates are used where they exist. If there is no project pay rate, payroll can use the 52-week average pay from a zero-hour employment that uses average weekly hours.

Salary people use Worked/Working Days, not this hourly path. See Salary pay calculation.

There is no Timesheet tab on Company Money. Hours are applied when the pay cycle is calculated.

Opening the pay cycle

  1. Log in to Plumm.
  2. Open the 9-dot menu.
  3. Under Money, select Company Money.
  4. Select an Active location.
  5. Select Pay Schedules, then an Active schedule.
  6. Select Start Pay run or Continue Pay run.
  • If a configuration warning appears, read it, then select Continue.
  • If the banner shows We noticed there's been some changes to this pay cycle, select Recalculate.

Check timesheet and attendance warnings

On Updates, the Type column can show Timesheet or Attendance.

Timesheet and Attendance warnings use a yellow tag.

The columns are:

  • Name
  • Message
  • Type
  • Update Date

Do not ignore these warnings unless you have confirmed that the person’s hours for the period are correct.

The exact warning sentence is stored with the payroll warning record. Treat Timesheet or Attendance in the Type column as the confirmed warning type.

Reviewing Payrate and Total Worked Hours

Open Salaries, then Income.

Open the hourly employee.

Worked Days is disabled.

Payrate is shown and is read-only.

Total Worked Hours is shown and is read-only.

If the person has more than one project rate, each Payrate and Total Worked Hours pair is listed.

Income for the cycle is calculated as each Payrate × Total Worked Hours, added together, plus any other income.

Select Save if you add other income. You cannot enter hours here to override the calculated total.

You need Add Income in Payrun to add income.

Use Back, View History, and Continue as you would in a normal pay cycle.

How hours are chosen

Payroll only uses this hourly calculation when Employment Pay Type is Hourly.

If the pay type changed during the period, payroll splits the period into slices and only counts the hourly slices.

Attendance first

  • Payroll reads attendance start and end times in the slice, using the person’s time zone.
  • Hours are calculated as the minutes between the start and end times, divided by 60.
  • The project on the attendance row is used to find the Payrate.

Approved timesheets when there is no attendance

If there are no attendance rows for that slice, payroll uses timesheet entries that are:

  • Approved
  • Active
  • Dated within the slice
  • Linked to a project task

Unapproved timesheets are not included.

If both attendance and timesheets exist for a slice, attendance is used and the timesheet is not used for that slice.

Payrate

Payroll uses the project pay rate that covers the slice.

If that rate is missing, payroll can use the 52-week average pay from a zero-hour employment that uses average weekly hours.

Overtime hours

If overtime exists for the cycle, those overtime hours are removed from Total Worked Hours so they are not paid twice as basic hourly pay. The overtime amount is then added as other income. See Overtime in payroll.

If there are no pay rates and no hours, Worked Days is stored as 0 and current cycle income is 0.

After you process the pay run, hours are locked on that Completed cycle. Correct the timesheets or attendance first, then undo the pay run if you have Undo Payrun permission.

Frequently Asked Questions (FAQ)

  • What if I cannot see Pay Schedules?
    You need View Pay Schedules. Company Money also requires the Payroll add-on and Company Money permission.
  • How do I make sure hours are captured?
    Approve timesheets before the pay run. Check attendance where the person clocks in. Select Recalculate on Updates if hours changed after the cycle was opened.
  • Can I change the hourly rate after Start Pay run?
    Edit the pay details before you process the pay run. After Process Pay Run, undo the cycle if you have permission.
  • Does a timesheet replace attendance?
    No. Attendance is used first. Timesheets are used as the fallback when there is no attendance for that slice.
  • Do salary people use timesheets for basic pay?
    No. Salary uses Worked/Working Days. Timesheet Type warnings can still appear if payroll has timesheet-related checks for that person.
  • Why is Total Worked Hours lower than the timesheet total?
    Overtime hours are removed from Total Worked Hours and paid as other income. Also check that the timesheet is approved and linked to a project task, and that attendance did not already cover that slice.