Creating a Worker Pay Type

Objective

After completing this lesson, you will be able to create a Worker Pay Type and associate to a Job Posting Template.

Worker Pay Types

A Worker Pay Type is an association category used when worker rates are dependent on the type of worker selected for a position. They allow for variances in pay rates based upon certain circumstances, such as whether the supplier or buyer will be responsible for paying the worker.

For example, a buyer has hired a worker through a supplier, who will pay the worker. However, they hired another worker through a different supplier, but that worker will be paid directly by the buyer. It's the Worker Pay Type that defines that distinction.

Another distinction is an independent contractor--an external worker who is contracted directly, as opposed to being hired through a third-party supplier or procured as part of a larger project. A buyer, for example, may want to engage a graphic designer to help its marketing department with an advertising campaign. If they contract directly with a graphic designer, that worker would be classified as an independent contractor.

A Supplier view of a job posting setup page showing the Worker Pay Type field. The field is selected and displaying it's dropdown menu with the options 1099, Default Worker Pay Type, and UK PAYE visible.

Multiple worker types can be associated to job posting templates. Buyers can also specify the rate schedule to be used for the worker pay type when creating a job posting if the 'specify Rate Schedules per Worker Pay Type" job posting template rule is enabled.

A Worker Pay Type would be selected when a supplier is submitting a job candidate. It captures whether the worker, buyer, or supplier would be responsible for paying the wage taxes so they can be reflected appropriately in the rate grid.

This admin object only displays when the company configuration "Use Worker Type" is enabled.

Navigating the Worker Pay Type Admin Object

Worker section of the Admin Menu, the Worker Pay Type link is highlighted.
1To view a list of worker pay types associated to the tenant, select Worker Pay Type from the Worker section of the admin menu.

Worker Pay Type List page

These worker types can be associated to rate grids to support various worker types with different rates, and the rate grids can then be associated to job posting templates. If rate grids are included, one can be marked as the primary in the Job Posting Template.

Multiple worker types can be associated to job posting templates, with or without rate grids associated to them. Buyers can specify the rate schedule to be used for the worker pay type when creating a job posting if the "Specify Rate Schedules per Worker Pay Type" job posting template rule is enabled.

Worker Pay Type List page listing all of the available Worker Pay Types. For each type listed the code and name are displayed. The Default Worker Pay Type link in the Code column is highlighted.
2To view the details of a worker pay type, select an appropriate link in the Code column.

Worker Pay Type Details page

A worker pay type details page displays limited details such as name and code, though it does have an optional function that allows associated pay rate to be excluded from tax adjustments.

Worker Pay Type Details page displaying the details of the Worker Pay Type, including the code, name, description, and whether the pay type is excluded from tax adjustments. The Exclude Pay Rate from Tax Adjustment row in the Details section is highlighted.
3If the Exclude Pay Rate from Tax Adjustment option is enabled, taxes are not calculated on the pay rate, but on the difference between the pay rate and the bill rate.

Create a Worker Pay Type

WorkingNet Networking, Inc., a global manufacturer of data networking equipment, is building new distribution centers in several countries, while simultaneously implementing new logistics software and processes. The new logistics processes will require WorkingNet's accounting methods to be revised.

To help transition to the new software and the revised accounting methods, Melanie, the manager of the finance department at WorkingNet, needs to procure several accounting clerks for the six-month period in which the software is being configured and implemented.

To accommodate these new positions, a new Job Posting Template must be created.

However, before the template can be created, worker pay types must be created to accommodate differing sourcing and payment methods in other countries, including PAYE (Pay-As-You-Earn), which is a common payment method in the UK.

As the SAP Fieldglass administrator for WorkingNet, you are now tasked with creating the new worker pay types for use on job postings for any professional office positions.

Summary

Worker Pay Types categorize pay rate variances based on who pays wages and taxes. They are chosen during candidate submission, impacting rate grids. Multiple types can be linked to job templates, with rate schedules specified by buyers if enabled.

Key Points:

  • Pay Rate Variances: Worker Pay Types account for differences in pay rates based on certain conditions.
  • Responsibility for Wages & Taxes: They capture who (worker, buyer, or supplier) pays wages and relevant taxes.
  • Job Posting Association: Multiple worker types can be linked to job posting templates.
  • Rate Schedule Specification: Buyers can specify rate schedules for each Worker Pay Type if the job posting rule is enabled.
  • Visibility: This option is only available when the company configuration "Use Worker Type" is enabled.