Setting up weighted allocation of fixed amount payroll items

Alerts and notices

Introduction

Use a weighted allocation to automatically distribute fixed amount deduction or employer contribution items across locations and departments. Weighted allocation is helpful when a client has employees working in multiple locations and/or departments, especially for:

You can choose to set up weighted allocation at the client level, by setting up the calculation for the deduction and employer contribution items, or at the employee level by modifying payroll item settings for individual employees.

Client-level: Setting up weighted allocation calculation for payroll items

Using this method, you can set up deduction items or employer contribution items to use weighted allocation. These payroll items are then available to use for any of the client's employees.

  1. Using the Setup > Payroll Items screen, create or modify a deduction or employer contribution item with a Fixed amount calculation type.
  2. Mark the Weighted allocation checkbox directly underneath the Calculation type drop-down list. Show me.
    Weighted Allocation checkbox - Payroll Items screen
  3. Add the deduction or employer contribution item to the appropriate employee records by marking the Active checkbox for that payroll item in the Payroll Items tab of the Setup > Employees screen.
  4. Click the Ellipsis Ellipsis button button next to the payroll item in the Payroll Items tab of the Employees screen to open the Employee Payroll Item Settings dialog. Note that the Weighted allocation checkbox is marked by default for that payroll item in the Employee Payroll Item Settings dialog for that deduction or employer contribution. Show me.
    Weighted allocation checkbox in Employee Payroll Item Settings
  5. If necessary, you can enter or modify the fixed amount of the item in the amount field next to the checkbox. This will update the Rate field in the grid on the Payroll Items tab of the Setup > Employees screen.

Employee-level: Setting up weighted allocation calculation for employees 

Using this method, you can specify that deduction items and employer contributions use weighted allocation for individual employees, rather than for the payroll item itself.

  1. If necessary, create and add payroll items to your client as usual.
  2. Choose Setup > Employees, select the employee to edit, and click the Payroll Items tab.
  3. Mark the Active checkbox for the deduction or employer contribution to allocate.
  4. Click the Ellipsis Ellipsis button button for that payroll item, to the right of the Rate column.
  5. In the Rates and General Ledger Accounts section of the Main tab, mark the Weighted allocation checkbox. Show me.
    Mark the Weighted Allocation checkbox manually
  6. If necessary, you can enter or modify the fixed amount of the item in the amount field next to the checkbox. This will update the Rate field in the grid on the Payroll Items tab of the Setup > Employees screen.

Note: You can modify weighted allocation settings for several employees at a time using the Edit Multiple Employees wizard, which you can open by clicking the Edit Multiple Employees link at the bottom of the Setup > Employees screen.

Entering payroll checks with weighted allocation

  1. Enter payroll checks as usual, using either the Actions > Enter Batch Payroll screen or the Actions > Enter Transactions screen.
  2. Click the Ellipsis Ellipsis button button next to the pay item to open the Payroll Item Distributions dialog.
  3. Distribute the hours for the pay item across locations/departments as applicable. Show me.
    Pay item distribution across locations
  4. To verify that the deduction item or employer contribution item has been distributed appropriately based on the pay distribution, click the Ellipsis Ellipsis button button next to that weighted deduction or employer contribution item in the grid to open the Payroll Item Distributions dialog. Show me the screenshot and example.
    Weighted deduction or employer contribution

    In this example, the weighted allocation calculation is proportionally calculated based on the gross amount in each location or department. In the above example, the total deduction amount is $100.

    • 50% of the employee’s gross amount is in Medford Oregon, so the program takes 50% of the deduction amount and puts it in Medford Oregon.
    • 25% of the employee’s gross amount is in Brookings Oregon so the program takes 25% of the original deduction amount and puts it in Brookings Oregon.
    • 25% of the employee’s gross amount is in Portland Oregon so the program takes 25% of the original deduction amount and puts it in Portland Oregon.

Rounding example

If there is a need for rounding, the extra amount goes into the location or department marked as Primary in the Main tab of the Setup > Employees screen.

Rounding distributions example

An Oregon employee worked in Medford, Brookings, and Portland earned $530.00 in each location.  Brookings was marked as the primary location, so the deduction would be split as follows.

  • Medford: $33.33
  • Brookings: $33.34
  • Portland: $33.33

Show me.

Rounded deductions