Vacation pay & second rate
TinaL
16 Posts
We have an employee who is scheduled every day to work 6 hours in one job and 2 hours in another. The rate of pay for job 2 is $4.20 an hour higher than job 1.
Recently, he went on vacation for a week and we split his vacation hours the same way as his work hours. We are a non-profit subsidiary of a larger company and the "parent" company says the payroll system will only pay vacation on the first rate. So, our employee lost $42 gross pay for this week. He was understandably pretty upset and says he may not want to work job 2 if that is the way it is going to be.
We then tried to change his pay to one rate, which equaled what he is currently making, and separately "charge" the appropriate amounts to each department in the accounting system as we currently do with several other employees. The other employees, however, only work one job.
Our parent company would not let us do this either because there are two separate job descriptions. They are not job descriptions that we would want to combine.
Does anyone have an opinion on this? I feel like we are docking this person every time he takes vacation or a holiday. And, we certainly do not want him to quit job 2 as he is a very valuable employee and it is a very hard job to fill.
Recently, he went on vacation for a week and we split his vacation hours the same way as his work hours. We are a non-profit subsidiary of a larger company and the "parent" company says the payroll system will only pay vacation on the first rate. So, our employee lost $42 gross pay for this week. He was understandably pretty upset and says he may not want to work job 2 if that is the way it is going to be.
We then tried to change his pay to one rate, which equaled what he is currently making, and separately "charge" the appropriate amounts to each department in the accounting system as we currently do with several other employees. The other employees, however, only work one job.
Our parent company would not let us do this either because there are two separate job descriptions. They are not job descriptions that we would want to combine.
Does anyone have an opinion on this? I feel like we are docking this person every time he takes vacation or a holiday. And, we certainly do not want him to quit job 2 as he is a very valuable employee and it is a very hard job to fill.
Comments
Example:
Job 1 works 30hrs at 10.00/hr check for $300.00 minus taxes, etc.
Job 2 works 10 hrs at $14.20/hr check for $142.00 minus taxes, etc.
Vacation would be handled the same that way you are dividing the job duties and the ee would be paid the same amount as he would if he worked.
Would it be possible to issue the 2nd payroll check ONLY when there is a holiday or vacation involved? Of course, another memory I have of non-profitism is that we got most of the fed/state holidays, so that will come up more often than your payroll might prefer.
Good luck!
However, our pay policy clearly states than all pay (other than for hours actually worked) will be based on the primary pay rate. Thus, vacation pay, sick pay, jury duty, holiday pay, etc are all paid at the same rate. It really simplifies the pay process. I couldn't imagine having to prorate an employee's pay based on the various departmental rates they might be paid. In our case it balances out, since the employee might work in a department that pays less than his primary rate as well as the department that pays more than his primary rate. It also eliminates any problems associated with overtime.
A good example of the logic involved is seen when our assistant supervisor has to fill in for the supervisor. When this happens we pay the assistant an extra $1.50 per hour, but do not adjust vacation pay, etc.
It does not matter which job they are doing after 40hrs worked they get OT. The PR dept would have to know which job and how many hrs they worked OT and apply it to that job.
I am not going to get into the "overtime issues" because that isn't what you seem to be asking.
First of all, I hate to say this, but I can't believe what your parent company (that does payroll) is telling you is correct. I don't know what type of payroll system they use, but I would suggest that they contact their provider and pose the question to them. I know of too many situations where you might want 2 different rates on the same check and that what payroll systems are made to do. (sounds like to me it may be more work than the parent company wants to do. Or, they may just not know how to do it and haven't even tried to ask someone.)
You might want to ask them what type of payroll system they use and then post that here to see if anyone here uses that system and might be able to provide more input. (If this is truly the case and the system can't do it, I would suggest that they look into a new payroll provider... must be a really old system.)
E Wart
E Wart