Introducing Timekeeping, Shift Pay, and Weekly Pay

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Payroll Enhancements Overview

Forward Arrow Solutions + Technology is excited to announce our enhancements to our payroll module in our FAST Software Platform. The payroll system is designed to provide flexibility in compensating employees based on various pay structures – and we have recently added even more options.  The Timekeeping tool can be utilized for Wage & Hour Compliance and also for Employee Payroll.  This guide explains how to configure the system and how each pay type works so you can configure your account to further streamline your payroll process.

How to Utilize and Configure Additional Payroll Options

1. Access Company Settings
   • Navigate to the Company Settings page in the admin dashboard.
   • Ensure your account is active and timekeeping is enabled if you plan to use hourly or shift-based pay.
2. Enable Timekeeping
   • Toggle the Timekeeping option to allow employees to clock in and clock out.
   • This feature is essential for calculating hours worked and applying hourly or shift-based pay.
3. Configure Default Pay Rates
   • Set up default pay rates for hourly, shift, weekly, and overtime pay.
   • These defaults will apply to all employees unless overridden by driver-specific settings.
4. Driver-Specific Overrides
   • Navigate to the Driver Management section to configure pay rates for individual drivers.
   • Driver-specific settings will override company defaults where applicable.
5. Viewing and Using Timekeeping Data
   • This data can be found within Payroll Tools under Review Driver Pay for a specific pay period
   • It can also be found under Dashboard/Compliance/Timekeeping as well

Pay Types and How They Work

1. Hourly Pay
   • How It Works:
     • Employees are paid based on the number of hours worked.
     • Timekeeping data is used to calculate total hours worked, excluding breaks.
   • Configuration:
     • Enable hourly pay in the company settings.
     • Set a default hourly rate.
     • Optionally, enable the “Plus Trip Earnings” option:
       • If enabled, drivers are paid both the hourly rate and trip earnings.
       • If disabled, drivers are paid the higher of the two.
   • Example:
     • A driver works 8 hours at $20/hour and earns $150 in trip earnings.
     • If “Plus Trip Earnings” is enabled, the driver earns $310.
     • If disabled, the driver earns $160 (whichever is higher).
2. Shift Pay
   • How It Works:
     • Employees are paid a fixed rate for completing a shift that meets the minimum required hours.
     • Timekeeping data is used to determine if the minimum hours are met.
   • Configuration:
     • Enable shift pay in the company settings.
     • Set a default shift rate and minimum shift hours.
     • Optionally, enable the “Plus Trip Earnings” option:
       • If enabled, drivers are paid both the shift rate and trip earnings.
       • If disabled, drivers are paid the higher of the two.
   • Example:
     • A driver completes a 10-hour shift with a $200 shift rate and earns $150 in trip earnings.
     • If “Plus Trip Earnings” is enabled, the driver earns $350.
     • If disabled, the driver earns $200 (whichever is higher).
3. Weekly Pay
   • How It Works:
     • Employees are paid a fixed rate for meeting the minimum required hours in a week.
     • Timekeeping data is used to calculate total hours worked in the pay period.
   • Configuration:
     • Enable weekly pay in the company settings.
     • Set a default weekly rate and minimum weekly hours.
     • Optionally, enable the “Plus Trip Earnings” option:
       • If enabled, drivers are paid both the weekly rate and trip earnings.
       • If disabled, drivers are paid the higher of the two.
   • Example:
     • A driver works 50 hours in a week with a $1,000 weekly rate and earns $800 in trip earnings.
     • If “Plus Trip Earnings” is enabled, the driver earns $1,800.
     • If disabled, the driver earns $1,000 (whichever is higher).
4. Overtime Pay
   • How It Works:
     • Employees are paid an overtime rate for hours worked beyond the overtime threshold.
     • The overtime rate is typically 1.5x the hourly rate but can be customized.
   • Configuration:
     • Enable overtime pay in the company settings.
     • Set an overtime threshold (e.g., 40 hours) and an overtime rate.
   • Example:
     • A driver works 45 hours in a week at $20/hour.
     • The driver earns $800 for the first 40 hours and $150 for the 5 overtime hours (1.5x rate).
     • Total earnings: $950.
5. Fixed Per Diem
   • How It Works:
     • Drivers receive a fixed per diem amount, which is not subject to payroll taxes.
     • This is commonly used in the transportation industry for meals and incidental expenses.
   • Configuration:
     • Enable fixed per diem in the company settings.
     • Set a default per diem rate.
   • Example:
     • A driver receives a $50 per diem for each day worked, in addition to other pay types.

Combining Pay Types with “Plus Trip Earnings”

The “Plus Trip Earnings” option allows you to combine base pay types (hourly, shift, or weekly) with trip earnings. Here’s how it works:

1. Enable the Option:
   • In the company settings, toggle the “Plus Trip Earnings” option for the desired pay type.
2. How It Affects Pay:
   • When enabled, drivers are paid both the base pay and trip earnings.
   • When disabled, drivers are paid the higher of the two.
3. Example Scenarios:
   • Hourly Pay:
     • Base hourly pay: $160
     • Trip earnings: $150
     • Total pay with “Plus Trip Earnings”: $310
   • Shift Pay:
     • Base shift pay: $200
     • Trip earnings: $150
     • Total pay with “Plus Trip Earnings”: $350
   • Weekly Pay:
     • Base weekly pay: $1,000
     • Trip earnings: $800
     • Total pay with “Plus Trip Earnings”: $1,800

Best Practices for Payroll Admins

1. Set Clear Defaults:
   • Configure default pay rates and thresholds in the company settings to ensure consistency.
2. Use Driver-Specific Overrides:
   • For unique pay arrangements, override company defaults at the driver level.
3. Enable Timekeeping:
   • Use the timekeeping feature to track hours and shifts accurately.
4. Review Pay Period Data:
   • Regularly review timekeeping data in the Period Shifts Manager to ensure accuracy.
5. Export Payroll Data:
   • Use the export feature to generate payroll reports for further processing.

FAQs

Q: Can I enable multiple pay types at the same time?

Yes, you can enable multiple pay types (e.g., hourly, shift, and weekly). The system will calculate payouts based on the configured rules.

Q: Can I enable different pay types for specific employees?

Yes, the system will look for employee-specific rates.

Q: What happens if an employee doesn’t meet the minimum hours for shift or weekly pay?

If the minimum hours are not met, the employee will not receive the shift or weekly pay. However, they may still receive hourly pay or trip earnings.

Q: How does the system handle overtime?

Overtime is calculated automatically for hours worked beyond the configured threshold. The overtime rate is applied to these hours.

Q: Can I pay drivers only based on trip earnings?

Yes, you can disable all other pay types and rely solely on trip earnings.

Conclusion

The payroll system offers a flexible and powerful way to manage employee compensation. By configuring pay types and leveraging the “Plus Trip Earnings” option, payroll admins can ensure fair and accurate payouts while accommodating unique business needs. For further assistance, contact the helpdesk.