The required minimum wage rate is set within the payroll options. See the Minimum Wage field within Payroll > Options >Settings tab. This minimum wage rate should be updated whenever there is a rate change to ensure that all timecards are processed within the minimum wage law requirements.
Makeup pay is used within EBMS to insure that an employee has been paid minimum wage. This is normally not necessary for hourly or salaried employees. This feature is used when processing piecework or tip pay and the employee has not earned minimum wage based on the hours the employee worked. Makeup Pay is used in industries such as Restaurants where minimum wage is not paid and the total income of the employee is made up of and hourly wage and tips. Makeup Pay is used as an adjustment when the total income for a given pay period (wages plus tips), divided by the number of hours, does not equal the Minimum Wage pay rate. Makeup pay is added if the total wage divided by the total hours is less than minimum wage (Wage / Hours < Min Wage). The total work hours for non-hourly pay types are calculated using the Daily Hours totals within the Daily Hours window. Review the Daily Hours section for more details on Daily Hours.
If makeup pay is required it is automatically calculated within the timecard screen and displayed at the lower part of the timecard. This expense is added to the employee’s gross pay and is paid and taxed as all other pay. The total makeup pay expense is posted to the general ledger account identified within the timecard > View > Advanced Options window. The account located within the timecard is copied from the Employee > Advanced tab at the time the timecard is created. Go to the Makeup Pay general ledger account within Employee > Advanced tab.
To globally change the Makeup Pay general ledger account for all employees go to Payroll > Options > Employee Folders – Edit Defaults button > Advanced tab and filter down.
If you do not wish to process Makeup Pay for a specific employee go to Employee > Pay tab and switch the Is Subject to Minimum Wage check OFF. By turning this switch OFF, the system will not check minimum wage requirements.