Calculating Client Compensation

The Advantage HRM system provides an automated process to calculate and generate client specified pay or leave compensation. Many clients currently compensate additional hours that are not specifically covered by FLSA with “straight time” compensation. This compensation can be generated in the form of additional cash paid out to the employee or through accruals of compensatory leave. This additional compensation may not only apply to hours worked, but also to hours paid during a designated period that are included in determining Client Compensation eligibility.

Calculating Client Compensation is similar to calculating FLSA. Employees are linked to a profile that is related to their Sub-Title code, which can be overridden at the position or employee level. The profile identifies how many hours make up the standard Client Compensation period and whether hours should be paid or compensated as leave.

The following tables must be set up to calculate Client Compensation:

• The Client Compensation Pay and Leave Profile (CCPR) page provides the ability to define and maintain codes that are permissible combinations of Client Comp plans and pay types and provides fields to set up the control of pay and leave for compensatory time. This page is used to group employees who follow the same Client Compensation rules. The CCPR page includes an upper limit threshold for Client Compensation. For FLSA processing, a minimum number of hours must be identified in order to define a threshold for the normal work hours in an FLSA period. Once the threshold has been reached, the system begins to calculate FLSA with no limit on the number of hours compensated. However, to pay Client Compensation to employees that have an FLSA non-exempt status, the number of hours calculated for Client Comp time should be capped to prevent excessive compensation for both Client Comp time and the FLSA premium. In this case, the upper limit allows an employee to receive Client Comp up to the point where the FLSA process begins.

• On the Title (TITL) table, the CCOMP Exempt ID defines the Client Comp exemption status. Select Exempt for a Client Comp exempt employee. Select Non-Exempt for a non-exempt employee

• CCOMP Profile on Sub-Title (STTL) identifies the Client Comp profile.

• Identify Client Comp pay events using the Event Type field on Pay and Leave Category (CATG).

• The Client Comp Processing Information section of the Pay and Leave Events (EVNT) identifies whether to include the event in the Client Compensation calculation, a percent of hours, and a percent of pay for the calculation.

• The ESMT and PSMT transactions contain an Override section to allow a user to override the Client Comp profile code related to the Sub-Title code at either the employee or position level. In addition, the Employee Status Maintenance and Position Status Maintenance Inquiries in the EPM and POSM activity folders also display the overrides if entered.

The Gross to Net (GTN) process is able to distinguish between FLSA and Client Compensation calculations and process only those eligible hours according to the limits defined on the reference tables. The process allows for the possibility of calculating both Client Compensation and the FLSA premium for an employee during the same pay period. In addition, the HRM system calculates Client Comp for both positive and exception paid employees based on their Client Comp exemption status. The process is able to calculate pay for exception paid employees using the schedule that exists on the Work Day Schedule (WDAY) table so that the employee gets their normal exception pay, plus any extra work hours, plus either Client Comp pay and/or the FLSA premium. Client Compensation is calculated for both online checks as well as batch processing. Finally, Client Compensation is calculated for both prior and current pay events. If a pay period has activity that affects Client Comp for a prior period, then Client Comp is analyzed for that prior period, and retroactive pay processing occurs. The retroactive pay processing is initiated based on regular retro triggers. GTN checks the CCOMP CALCULATIONS BYPASSED parameter entry on the Site Specific Parameters (SPAR) table. If the Yes/No Flag of this parameter is set to Y, then no Client Compensation is calculated or generated for any employee at the site. If set to N, then Client Compensation is calculated for all eligible employees.

In the event that the system is configured to generate leave as compensation for Client Comp, GTN converts all the eligible hours, and an AACC transaction is generated at the appropriate rate to accrue the time to the appropriate leave category.

GTN checks the CCOMP CALCULATIONS BYPASSED parameter entry on the Site Specific Parameters (SPAR) table. If the Yes/No Flag of this parameter is set to Y, then no Client Compensation is calculated or generated for any employee at the site. If set to N, then Client Compensation is calculated for all eligible employees. HRM checks to see which employees are eligible through the TITL and ESMT CCOMP Exempt ID fields. If an employee is deemed eligible, the Client Comp Profile is derived by checking the CCOMP Profile field in the Overrides section of ESMT. If no override exists, then the system looks to the employee’s STTL to determine the Client Comp Profile code. The Client Comp Profile states what the Plan Type and Work Cycle hours are, how many regular hours must be worked before Client Comp can be generated, and whether Client Comp is paid out or accrued as a leave event. If Client Comp is treated as a leave accrual, the system checks the Leave Policy Event Type table (LPET) to determine the employee’s Leave Factor amount. Finally, the CCOMP Processing Information section on the EVNT page determines how pay and leave events are included in Client Comp calculations.

CCOMP Calculation FormulaCCOMP Calculation Formula