Technical Support Blog

Creating and Using Pay Differentials

Do you have employees that regularly work swing or midnight shifts? Providing compensation to employees for performing work during nonstandard shifts is a common need for businesses. When gross wages are enabled for employee timecards, Virtual TimeClock provides a way for employers to configure one or multiple shifts to receive either a percentage or dollar amount for each differential hour worked. Here are the steps for taking advantage of this helpful feature.

Enter the employee hourly wage:
  1. From the File menu, choose Turn Administration On.
  2. From the Configure menu, choose Users.
  3. Select the Employment tab and enter the wage.
  4. Click Apply to save the changes.

Create a new shift: 
  1. From the Configure menu, choose Shifts.
  2. Click Add in the lower left corner and choose New Shift.
  3. Give the shift a name like "Graveyard" and save.
  4. Set the shift start & stop times. 
  5. Select the appropriate differential as either an Hourly Percentage (enter the percent above base pay) or an Hourly Dollar Amount (enter dollars above base pay).
  6. Click Apply to save the changes.

Assign the shift to user schedules:
  1. From the Configure menu, choose Schedules.
  2. Select the employee from the list on the left.
  3. In the Assigned Shift section, select the correct shift for each day and click Apply.

Enable gross wages on employee timecards:
  1. From the Configure menu, choose Report Writer.
  2. Select the Timecard Detail report and click Report Options.
  3. Check the Total Gross Wages and Shift Summary checkboxes.
  4. Click Save.

The employee timecard will now include the differential pay with the employee's regular gross wages. The helpful shift summary will separate the hours worked based on shift. In the example below, hours worked during the Graveyard shift are paid a differential of $1.00 above base pay. The shift summary shows how many hours are being paid at the differential rate.