Paying Bonus for Piece Work plus an infrequent Hourly Wage

SUGGESTED

We have employees who earn 100% Bonus paid to them for piece work, as their regular wages. But sometimes they cover another person's job and need to also earn an hourly wage. In the following scenerio how would we enter this 40 hour paycheque in Sage?

Josh earned $1800 Bonus calculated for piece-work, over 37 hours of time. We would enter this under the Income type Bonus as a lump sum payment. (But this does not record 37 EI Insurable Hours...)

Josh also did janitorial clean up for 3 hours time, and he will earn $16.95 per hour X 3 hours in addition to the Bonus. 

The problem:

If we enter 3 hours X $16.95 per hour on the cheque, then he only has 3 hours of EI Insurable earnings, but Josh should actually have 40 hours of EI Insurable earnings.

If we enter 40 hours X $16.95 per hour on the cheque, he is way over paid and the payment is incorrect.

If we change his hourly rate to a penny $0.01 then in theory we could give him 40 hours X $0.01 per hour, so 40 cents, and then he will have 40 EI Insurable hours.  Then we could pay him the $16.95 X 3 hours under a different Income Type and set that income type to NOT record EI Insurable hours.  -  Is this the only solution to the problem?

There must be a better way.  Thanks.

  • 0
    SUGGESTED

    I think your solution is probably the only way to deal with your unusual situation within Sage.  Remember that Sage is designed to be an all-round bookkeeping system - doing an OK job of accounts payable, accounts receivable, and payroll, but without the features of a high-end custom built system for any of these functions.  There can be difficulties dealing with unusual situations.

    If you have a number of unusual situations in your payroll, you might want to look at a separate payroll program, such as Paydirt.  Paydirt is very, very customizable, and creates journal entries that can be imported into Sage.  However, you'd then be paying for both Paydirt and Sage.... it's always a question of whether the extra convenience of a payroll-only program for payroll is worth the extra cost.

  • 0
    SUGGESTED

    I've never worked with Piece Rate clients but I would be setting up more than one Income field for the different types of pay possible.

    One can be set to Piece Rate and you can set up a specific dollar amount per piece.  Regular Hours or other income field can be used for the Janitorial hours.

    Please be aware though that because of the Hourly concept of EI Insurable Hours, if an employee is not paid by the hour, you cannot record hours in the program.  Please see this page regarding how to calculate EI hours for piece work.  I am not an expert, I just Googled it.  So you may want to call the CRA about it.