Non-profit organizations have good reason to dread payday.
When salaried employees spend time working across different grants or funds in the pay period, calculating the correct allocation of pay can be excruciating—especially when the process relies on manual calculations or spreadsheets. Not only is the opportunity for human error high, the process can be long and laborious. And if employees work over or under standard pay period hours or have a vacation day, additional calculations create yet another layer of complexity.
Simple Salary Allocation At Last
IDI’s Time Bank integration software can relieve the burden and help make payday something to look forward to once again.
Time Bank automates the process for exempt employees who work over or under standard pay period hours and need to have their earnings allocated proportionally across different labor codes (grants, funds, projects, etc.). Time Bank also has the flexibility to allocate PTO earnings proportionate to the worked time-labor distribution or to a fixed account.
This integrated solution ensures that employees are paid their proper salary earnings each pay period while providing necessary labor-tracking details for reporting to funding sources, job costing and general ledger. Time Bank removes manual calculations of the “effective rate” and eliminates duplicate entries across multiple systems. The application’s flexible parameters can accommodate even the most complex project allocation requirements.
How Does Time Bank Work?
Time Bank dynamically calculates employees’ prorated project earnings against their salary each pay period. Employees enter their actual time to grants, funds, etc. in a time-and-attendance system and Time Bank processes the prorated hours or earnings, before transferring the results to payroll.
Based on the number of hours charged to different labor codes in the pay cycle, Time Bank calculates the employee’s effective hourly rate using their pay period salary amount. This percentage allocation calculation maintains the employee’s labor distribution without affecting their payroll salary earnings when they work more or fewer hours than a standard workweek.
Time Bank also includes an audit report that provides employee earnings for verification and approval before processing payroll.
Non-profit organizations that implement Time Bank find new reasons to look forward to payday. If you’re tired of dreading the manual salary calculations, contact us to learn how we can help make payday a happy event again!