Time Factors
Last updated
Last updated
Time factors should only be provided if all these criteria are met:
Overtime occurs for some or all users in the system.
Overtime can be compensated in time, i.e. overtime can be saved in a time bank and taken on leave later.
There is only one time bank managed by the company for each person where all extra time is collected, i.e. any flex and overtime is added together in one pot.
The corresponding possibility described above also exists for travel time and for additional time (additional time may be relevant for people who work part-time and are entitled to additional time for time worked up to the normal working hours for the company).
Go to Administration - Settings - Payroll - Timefactors.
Fill in the time factor for the respective overtime level by clicking on the pencil at the far right of the row. It is possible to fill in time factors for as many overtime levels as are activated in the system (up to 4 overtime levels can be activated in the system).
Save.
In the example database, time factors have been specified as follows:
Overtime 1 has a time factor of 1.5
Overtime 2 has a time factor of 2.0
A user who has overtime enabled in his/her user card has reported 2 hours of overtime 1 in one month. In the same month, the user has also increased his flex by 1 hour. Since before, the user has 10 hours in his flex bank.
This is what it looks like in Info view in this example in the month where the flex of 1 hour and the overtime of 2 hours occurred.
The flex balance has been automatically increased by 1 hour as the user has reported more time than their normal working time. In order for the two hours to end up under the heading "Overtime 1", the user has made an "overtime distribution" (read more about it in the section on "Overtime" under the section on "Time registration").
When the user locks his/her month, the selection can be made whether the overtime should be paid out in money or saved in the time bank (flex bank). In this example, the user selects to save the two overtime hours in the time bank.
When time factors are entered in the system, the user is informed how many flex hours the overtime generates.
In this example, the user had worked 2 hours overtime 1, which gives 3 hours to the flex bank when the hours are recalculated with time factor 1.5.
The recalculation with the time factors is done when the month is locked. So in the info view in the following month, the value at "Flex - previous month" will be calculated with 3 more hours. In this example, the example user had
10 hours as the input value for month 1.
During month 1, the flex increased by 1 hour.
During month 1, the user worked 2 hours of overtime 1. This generates 3 hours after the recalculation that takes place when month 1 is locked.
In total, the flex balance has increased by 1 + 3 hours when month 1 ends.
The opening flex for month 2 is 14 (10+1+3).
If time factors are used, they will apply to all users in the database with overtime rights. It is therefore not possible to have different time factors for different users in the same database.
In the case where there needs to be two time banks for each user, i.e. one time bank for flex time balance and another time bank for overtime distributed as time compensation (usually called comp time), time factors should not be used. In Milient Time Flow, there is only one time bank called "Flex" where the balance is made automatically calculated on a comparison with the normal working time (read more in the section about "Flextime" in "Time Registration").
If there also needs to be a comp bank - this is managed by the payroll program. In this case, Milient Time Flow can help to add overtime hours when the comp bank increases and reduce the comp bank by the user reporting "comp withdrawal". In this case, there needs to be an activity managing the comp withdrawal. Payroll connections need to be set up for comp time increase and comp time withdrawal.
Contact a business consultant at Milient Software to get help setting up the system correctly in terms of flextime and overtime and connections to the payroll program.
