If you’re in the professional services industry, to know the true cost of your projects (wages, taxes, benefits, etc.), you want to ensure that your exempt employees' actual hours are accurately captured and applied to the respective client, project, etc.
Although you may already have a Time and Attendance system to keep track of employees' hours worked, they are not designed to allocate salaried employees' actual time to specific jobs or projects. Instead they allow for a guesstimate through fixed allocations, leaving you to rely on spreadsheets or manual calculations for accurate time and effort reporting, which can be unreliable and time-consuming to manage.
- Employee charges 84 project hours and 16 vacation hours in the semi-monthly pay period:
- 20 hours Project 11111
- 40 hours Project 22222
- 24 hours Project 33333
- Employee’s pay period salary is $2000
How can IDI help?
IDI can automate your time-consuming processes and help prevent audit anxiety!
Our Time Bank™ Salary Allocation solution is designed for salary exempt employees that work over or under standard pay period hours and need to have their earnings allocated proportionally across different labor codes worked (e.g. department, client, project). This Time Bank solution also has the flexibility to allocate the exempt employee’s PTO earnings proportionate to the worked time labor distribution or to a fixed account.
The solution can be tailored to reallocate employee hours instead of earnings and also accommodate different allocations for non-worked time (e.g. allocate PTO in same proportions to projects as worked time).
When Time Bank is run at the end of the pay period, it retrieves the time and labor information from the time system and then determines worked vs. non-worked earnings, determines percentage worked by project in the pay period, calculates worked earnings by project, calculates non-worked (PTO) earnings by project, and creates a file with the results for import into payroll.
With the click of a button, Time Bank reads the earnings from the time and attendance system, performs the allocations, and the results are passed to payroll with the accurate details needed for labor reports, financials, and client invoicing.
Time Bank can be further enhanced with solutions to meet the following needs:
OT / PTO Redistribution, or allocating non-exempt/hourly overtime or paid time off by percentages worked -- reassigning employee overtime or PTO hours by labor codes worked (instead of to the project when 41st hour occurs in the week).