Questions
When a temporary salary change is due to a shift differential, should we use the salary change or the shift differential event code combination?
How can I pay a 10 by 12 exempt (A01) employee for work performed outside his/her regular work schedule?
How to calculate (Add or Remove) Shift Differentials?

The shift differential event code must be used in this case, even though the change is also considered a temporary salary change.

Example:
An employee is supposed to receive a temporary salary change due to an addition of a 10% shift differential. The departmental submitter will use the OT-PT event code combination instead of JT-JA.

Event Code - Definitions:
OT - add 10% shift differential
PT - end of 10% shift differential
OS - add 6% shift differential
PS - end 6% shift differential
JT - Temporary Salary Change
JA - Salary Change

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In order to pay a 10 by 12 exempt (A01) employee for work performed outside his/her regular work schedule:

1. Calculate the additional payment
2. Process a Temporary Salary Change Document using DHRS Web to add the additional payment to the regular assignment effective the current pay period (refer to the DHRS Support website). Ensure that the Salary Change Document also contains an assignment to return the employee to his regular salary effective the following month.
Example:
John Doe is an exempt employee (A01) to whom the department owes payment of $1000 for days worked outside his regular work schedule in a previous month. Mr. Doe has a monthly salary of $4000.
To pay for the extra days worked, the department must submit a temporary salary change effective the current month (example: September 2009). The assignments in the document should be entered as follows:
Salary Change - Employee Information Section:
  • Effective Date: September 1, 2009
  • Remarks: Explain in detail the reason for the document. Example: Temporary Salary Change document to add payment for days worked outside employee’s regular schedule (10 by 12 employee)
  • Salary Change - Pay Distribution Section:
  • From September 1 to September 30, 2009 - Event Code JT (Temporary Salary Change) and Pay Rate Amount $5000 ($4000 regular monthly pay + $1000 owed for days worked outside regular work schedule)
  • From October 1, 2009 to May 31, 2010 (End of the Fiscal Year) – Event Code JA (Salary Change) and Pay Rate Amount $4000 (employee will go back to the regular monthly pay)
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    When calculating shift differentials:
    • To add 6% shift differential – multiply the base pay rate by 1.06
    • To remove 6% shift differential – divide the base pay rate by 1.06
    • To add 10% shift differential – multiply the base pay rate by 1.10
    • To remove 10% shift differential – divide the base pay rate by 1.10

    Correct Method Example:
    To remove 10% shift differential. The calculation is $37.24 divided by 1.10% = $33.86. To test if this is correct you would $33.86 X 10% = $37.24.

    Incorrect Method Example:
    Remove 10% from $37.24. The calculation is $37.24 x 0.10 = 3.724 and $37.24 – 3.724 = $33.52. (This will not be correct because $33.52 + 10% = $36.87 not $37.24)

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