How to Set Up Prevailing Wage With No Benefits
When setting up prevailing wage for a company for the first time, we will be using the 5 different programs seen highlighted below.
Start in the PR Template Master program. Here, we must create a template that'll house our selected crafts (or trades) and classes. To set up a new template, simply choose a template number and fill in the description field, as seen below:
The next step is in the PR Craft Master. We must create all of the crafts to be used on the job. Begin this step by creating a new craft code (in our example it is CmntMason), add a description and any other information necessary. The effective date can be the last date the rate for the craft was actually updated. This information can usually be found on the state or federal website listing the prevailing wage rates. The OT Schedule field is not a requirement. This is used if the overtime calculation in payroll is based off of "Craft" (in PR Employees under the Add'l Info tab) rather than any other option listed.
In this tutorial, we do not worry about any other tabs in the PR Craft Master because there are no company benefits (i.e. medical insurance, 401(k)) offered at this time.
The next program we are going to use is PR Craft Templates. We are now ready to link our shiny new crafts to our shiny new template we created in Step 1. Simply choose our new Craft and our new Template, and save the record. We can override our effective date (previously set in PR Craft Master), our overtime schedule (previously set in PR Craft Master), and set our reciprocal agreement. Again, because we are not worrying about a fringe rate (no benefits offered!), we do not care about the other tabs here (other than the Craft Class Templates tab, this can be useful in getting an overview of what craft/classes are linked to what templates, but, more on this later).
Now we go to PR Craft Classes where we will now create the classes to be linked to our craft. The classes contain the actual prevailing wage rate to be paid out to the employees when they enter time to them. Begin by choosing the craft we created in the PR Craft Master, then type in either a number or a simple alphanumeric code in the class field to create our new class. In this case, our Cement Mason craft will have a Journey Level class created and linked together. Depending on the state the payroll is to be processed in, you may or may not have to check the "Use Weighted Average Overtime Rates" checkbox. For our tutorial, leave the Calculation Method as Standard, and leave all else set to 0.00 here on the Info tab.
Again, we do not care about any other tab in this program, but please note: here you could set up the pay rate for this craft/class combination under the Pay Rates tab. For our tutorial, we will be setting the pay rate at the highest level of the hierarchy, which is the PR Craft Class Templates program.
Finally, the last program we will be visiting in our setup is the PR Craft Class Templates form. First, select the Craft, then the Class, then the Template (all created on our previous steps). Next, because we did not set a pay rate while at the PR Craft Classes program, we must check the "Override Class Prevailing Wage" checkbox. Then, leaving the calculation method as Standard, fill in the New Basic Hourly Rate field with the appropriate prevailing wage rate as posted by the state or federal agency. Save the new record.
Then, go to the Pay Rates tab, enter in the appropriate shift (use 1 as a default if not dealing with multiple shifts), the Old Rate (not required, more for informational purposes) and the New Rate (this is what drives the actual rate that'll be paid to the employee when entering time into PR Timecard Entry). The rest of the tabs in this form are not used for this tutorial, but at this level in the hierarchy they are for the same purpose as seen in the other forms above. This form will simply override any other data entered on any other craft/class program, so keep that in mind.
That is it! You've created a new craft/class template now ready for use in payroll processing. A few more reminders to wrap up here:
- make sure you link this template to the job that the time will be getting put towards (under JC Job Master, open the appropriate job for linkage, go to the PR Info tab, and choose the appropriate template for the Craft Template field
- when processing payroll, a class cannot be used without a craft, and a craft MUST have a class associated with it