- Salary or Wage
- Bonuses
- Commissions
- Vacation Pay
- Severance Pay
- Overtime
Pay Rates and Recurring Earnings
Nmbr has two features that can automatically create earning line items on payrolls:- Pay Rates
- Recurring Earnings (“Other Earnings” in the Nmbr component)
Pay Rates
Having one or more Pay Rates on a Work Assignment simplifies the task of managing earnings for an Employee. Nmbr uses the Pay Rates to automatically add Earning Line Items to the next Payroll.Annual Salary
For Pay Rates with atype of salary, the Earning Line Item will have the earning amount set by dividing the Pay Rate rate across the regular pay periods in the Pay Schedule’s year - e.g for a semi-monthly Pay Schedule, the rate will be divided evenly across 24 payrolls.
Some years carry a non-standard number of pay periods, such as 53 weekly or 27 bi-weekly payrolls. Some employers prefer to divide the salary over the standard 52 or 26 periods regardless, so an employee’s per-period pay stays the same from year to year. To support this, see Years With an Extra Pay Period.
amount on a specific Salary Earning Line Item, you should set the custom_amount field on the Line Item.
Years With an Extra Pay Period
Depending on how a Pay Schedule is configured, some years carry a non-standard number of pay periods: 53 payrolls on a weekly schedule, or 27 on a bi-weekly one. Nmbr divides an annual salary by the number of regular pay periods that actually fall in the year, so in those years each period pays slightly less. Semi-monthly and monthly schedules are always 24 and 12 periods, so they are never affected. Setcustom_pay_periods_per_year on the Pay Schedule to divide by a fixed number instead. A bi-weekly schedule set to 26 pays 1/26th of the annual salary in every period, including the years that have 27 periods. The employee is paid 27 times in such a year, so total earnings for that year exceed the annual rate by one period’s pay. Leave the field empty to divide by the actual number of periods.
The field is set on the Pay Schedule, so it applies to every salary on that schedule.
Setting custom_pay_periods_per_year changes the per-period amount on salary Earning Line Items, and the hourly rate Nmbr derives from a salary rate for proration and Overtime Rates.
On a bi-weekly schedule pinned to 26, a $52,000 salary pays $2,000 per period. In a year that carries 27 periods the employee is paid 27 times, receiving $54,000. Tax on each period is worked out from that period’s own taxable income annualized over the year’s 27 periods, so a $2,000 period annualizes to $54,000, not the $52,000 on the Pay Rate.
Hourly Wage
For Pay Rates with atype of hourly, the Earning Line Item will be created with an empty amount. Nmbr will automatically calculate the correct amount once the hours field has been set on that Line Item. The amount is calculated using the Pay Rate for that Line Item.
expected_hours_per_week is required when you create a Pay Rate of either type, but Nmbr only uses it for salary rates. On a salary rate it sets the default hours on the earning line item and derives the equivalent hourly rate used for proration and Overtime Rates. On an hourly rate it has no effect: the earning amount is the hours you enter times the hourly rate, and it is not used as the line item’s hours.
If you wish to override the amount on a specific Wage Earning Line Item, you should set the custom_amount field on the Line Item.
Examples
You can create a Pay Rate for an employee using the pay_rates endpoint: Request📘 Supporting multiple pay rates Nmbr gives you the ability to add multiple pay rates for a single Work Assignments. Scheduling and time and attendance software can leverage this feature to ensure employees are paid for the right roles and shifts.Once a payroll has been approved, Nmbr will automatically calculate the correct periodic earnings for the next payroll based on the Pay Schedule frequency.
Overtime Rates
In many workplaces, employees may have one or more overtime rates assigned to them. You can use the Nmbr API Overtime Rates to simplify creating, managing and calculating the correct overtime earnings for Employees. Bothsalary and wage Pay Rates can have one or more Overtime Rates assigned to them. When creating an Overtime Rate, you only need to provide the Pay Rate and rate_multiplier, and Nmbr will calculate the expected hourly_rate.
For Pay Rates with a type of salary, the hourly rate is the annual rate divided by 52 weeks, then divided by expected_hours_per_week. If you wish to override the calculated hourly_rate, you may set the hourly_rate_override.
In a year that does not carry the standard number of periods for the frequency, Nmbr adjusts the 52, so a year carrying 27 bi-weekly periods divides by 54 weeks. custom_pay_periods_per_year may be used to override the period count, so setting it to 26 on a bi-weekly schedule keeps the divisor at 52 weeks. See Years With an Extra Pay Period.
To add an Overtime to a Pay stub, create an Earning Line Item with an earning_type of overtime, and with an overtime_rate_id. Nmbr will then use the hours to calculate the correct earning amount for that Line Item.
Example
Creating an Overtime RateEnding Pay Rates
All recurrence types, including pay rates, have an effective window defined by theireffective_from and effective_to fields. If a pay period starts in this window, a managed line item will be created on the work assignment’s pay stub automatically. However, unlike other recurrence types, pay rates allow you to create custom line items that refer to the pay rate and use it to calculate the amount from the hours at that rate.
The pay rate’s effective window affects custom line items in 2 ways:
- In order to create a custom line item referring to a pay rate, the pay period must start in the pay rate’s effective window. If it doesn’t, the request to create the line item will be rejected.
-
When a pay rate’s
effective_tofield is set (i.e. when the pay rate is ended), any line items in pay periods after that date will be deleted automatically.
Example
An employer has an employee working as an Apprentice Electrician 3. The employee plans to take a week of vacation 6 months from now. The employer records the planned vacation by creating a vacation pay line item for 40 hours at the employee’s pay rate in the payroll 6 months from now. However, 3 months from now the employee starts a new term as an Apprentice Electrician 4. The employer ends the employee’s old pay rate and creates a new pay rate. When this happens, the vacation pay earning line item will be deleted, as it refers to a pay rate that is no longer effective. The employer will need to create a new vacation pay line item at the new rate.Recurring Earnings (“Other Earnings”)
Recurring Earnings simply create an earning line item with a fixed amount on every payroll they’re effective on. If you create a recurring earning, the recurring earning will create an earning line item on each payroll with that fixed amount.- The line item’s amount will not be prorated in any way.
- The line item’s amount will not be tied to its hours. If you set the hours on the line item, its amount will not be recalculated, as there is no underlying rate to recalculate it with. The hours will appear on the pay stub, however, if set.