Payroll

Complex check creation- Job Costing and Labor Distribution

These more complex setups allow the client to split up costs for general ledger and reporting needs.  Auto distributions allow employers to setup more complex allocation of worker wages by dispersing the earnings across these different jobs and assignments. When the client is using Job Costing and Labor Distribution you can override these auto distributions. Specify a Job Id or a Labor Assignment Id on the pay component placed on the check and block the auto distribution as needed.  

See simple Payroll Use Case for general information about working with the Payroll API checks. 

Job Costing 

Job costing is the allocation of time, material, and expenses to an individual project or job. Many industries use job costing to run their business, such as home builders, graphic designers, accountants, and production companies. These types of businesses must track all the costs associated with a certain job so the company’s profitability can be determined. 

Labor Distribution 

  • Labor distribution is the allocation of payroll expenses to specific labor assignments. A labor assignment is a component of the company’s overall structure. This is the same concept as “simple labor distribution,” but now all payroll expenses can be distributed.  Payroll expenses include earnings, deductions, and employee and employer taxes. Depending on the client, not all payroll expenses may be factored into labor distribution allocations. 

Benefits:

For our partners that have put in worker recurring deduction(s) they will need to know what was actually withheld based on the earnings that have been placed on the worker.  The partners will need to know when a pay run has been completed so that know that the information is now available for them to pull back to kick off their processes.

  • Handle memo hours for salary workers for unprocessed check(s)
  • Handle OT exempt workers error scenarios for unprocessed check(s)
  • Handle line dating for unprocessed check(s)

Workflow:

Step 1

Paychex

Map workers between the two

systems and synchronize jobs.

Step 2

External POS Systems

Earnings are collected

in external system.

Step 3

Paychex

Admin processes payroll with the

earnings provided from POS system.

 

Relevant APIs used: