In the AMG, you can define some hours in a day (e.g. night hours), for which employees will be paid with a wage differential (usually at a higher rate). Differentials will apply only to Hourly and Calculated Salary wage types.
Setting Up Differentials in AMG Web:
- Go to Company - Shifts - Shifts you should see Shift Groups Window
- In the top box (Shift Groups) click edit next to the group you want to edit.
- Click the checkbox Use Differentials
- Press Add
- Edit Differential window will open
- Start of the Differential (From) is the Beginning of the Shift Differential, end time (To) End of the shift Differentials (Time Set in 24 Hour Format)
- Select the Days the Differential Will Apply to
- Set Amount: Multiply to Multiply times the amount set
- Set Amount: Add to Add the Amount set
- Press Ok to save
- You can keep adding differentials to this shift group or press OK in Edit Group Window to save all changes. Keep in mind you can add differentials to any shift group.
To add differentials to an employee, you must make sure they have the correct shift assigned in their schedule. See this article for scheduling.
Example Scenario:
- John is an hourly employee who works from 8 AM to 4 PM at a standard rate of $20 per hour.
- Regular Pay: 8 hours x $20/hour = $160
- John also works an additional 4 hours from 10 PM to 2 AM.
- Night Shift Differential: 4 hours x ($20/hour + 20%) = 4 hours x $24/hour = $96
- Regular Pay: $160
- Night Shift Pay: $96
- Total: $256