The optional Piecework Pay module of EBMS is used primarily to manufacture products or create assemblies to distribute or sell. The amount of inventory items are increased using the manufacturing process rather than by purchasing items through an expense invoice. This module should be used in the following situations:
The piecework pay option within the EBMS payroll system allows the user to pay an employee by the piece instead of salary or by the hour. Work codes within the system can contain piecework pay rates and are entered into the timecard in a similar manner as standard pay. The number of pieces or units are entered into the timecard instead of the amount of hours. The unit pay is derived from the work code record rather than the employee’s hourly or salary pay entered within the employee record.
The system will calculate makeup pay if the employee’s pay does not meet minimum wage requirements. Review the Processing Payroll - Advanced > Minimum Wage and Makeup Pay section for more details on makeup pay. The amount of time spent doing piecework is calculated using the daily hours feature of the payroll system. Recording the daily hours time of an employee is important if the employee is paid with piecework rates. Review the Processing Payroll - Advanced > Daily Hours section for more details on recording daily hours for an employee.
The piecework system within EBMS can be combined with the Horticulture module designed for an orchard or produce grower. This combination allows the user to pay the employee by the piece and track the labor costs and yields per acre or block by using piecework and bin codes.
The piecework option must be enabled to use piecework payroll. Go to Payroll > Options to enable this option. Contact your EBMS customer service representative to add this option if the option does not appear.
A piecework pay type must be created if the type does not already exist. Go to Payroll > Options and click on the Pay Types tab to view the existing pay types.
Click on the Add button to a piecework pay type if the type does not already exist.
A common Description for the piecework pay type is Piecework. Set the Type option to Piecework. Note that the Base option is disabled since all piecework is based on units rather than dollars or hourly. All the other options are not applicable for a piecework pay type.
The piecework pay type must be added to the list of pay type options within an employee or group of employees. Review the pay tab section of Changing Employee Information to setup pay types within an employee.