How to Setup a Time Bank
A Time Bank is a payroll category which is used to bank hours worked by an employee. Many companies are now using time banks for various reasons. Some of these are for banking overtime to be taken in days off or paid at a later date. To see if an employee qualifies for statutory holiday pay, or to track an employee’s time in relation to a specific job.
- Go to Setup > Payroll Settings > Payroll Categories.
- Add a new category by clicking on the + sign. Choose ‘Add Earning’.
- Fill in the item number, description, and abbreviation.
- For ‘Type, choose piecework.
- For ‘Unit Name’, enter days/hours, etc.
- If desired, enter a ‘Default Rate’ in the box provided.
- In the ‘Subject To’ section, deselect all boxes.
- In the ‘Flags section, select any items which are relevant to this category.
- On the ‘Form Assignments’ tab, no items should be selected.
- When you are running a payroll and this item appears on the employee's timesheet, fill in the amount required such as days, hours, etc. for that pay period.
- To check and see how many hours, days, etc the employee has print your employee history report or the employee year to date report to the screen to verify the amount of hours, days, etc the employee has.
- To pay out an amount using the time bank such as for overtime which was banked you should do the following:
- Enter the regular hours etc
- If the employee wants to use some of their banked time, in the box that says banked hours or what ever you called the payroll item put in a negative amount. For example if the employee has worked 30 regular hours and wants to add 10 hours of banked time to his timesheet to bring the amount up to 40 hours you would put 40 hours in the regular hours item and place a negative 10 hours (-10) in the banked time item. This will reduce the employee’s time bank by 10 hours. This change will be reflected in the employee history and employee Year to Date report.
