Synced Accounts: Guidelines in Setting Up a Daily-Paid Employee in Sprout – Sprout Solutions

In Sprout, we have options for how we process the payroll of employees. There are monthly, semi-monthly, and daily-paid employees. In this article, we'll focus on how to set up daily-paid employees in Sprout.

If your HR and Payroll account is fully synced, most updates will need to be done in Sprout HR.

To begin, keep the following points in mind:

The salary computation of the “Daily/ Hourly Paid or Part-Time” Employees will now be based on their actual working hours to be reflected on the "Total Hours Worked" in the attendance report. What Is the Difference Between Total Hours Worked and Total Hours in the Attendance Report?

Now below is the step-by-step guide to the process:

The Payroll Run Type of the Employees can either be hourly or daily paid (via the Employee Profile > Work Information tab).

Here's How Do I Add a New Employee via Administration Tools individually or via Bulk: What is the Bulk Upload?
The Basic Salary and De Minimis (if there are any) of the employees should be to the Daily Rate. (How to Calculate the Daily Rate from Your Monthly Salary?)
The "Work Hours Per Day" field should be filled out because this will be the basis for calculating the hourly rate. This is required for Part-Time employees.
In Payroll Processing, you will need to use Payroll Run Type: "PART-TIME" for the daily/hourly paid employees as this is the regular payroll for them. (See here: Different Payroll Types in Sprout Payroll)

We recommend enabling/turning on all daily-paid policies including the below policies as this is needed for the Daily/ Hourly Paid employees:

+8 hours Legal Holiday policy: Employees will have 8 hours under the Total Hours Worked in the attendance report for unworked holidays only.
Note: For the +8 Legal Holiday Policy to take effect, the required Attendance Compute Type is First Shift Basis. For more information, you may refer here: First-Shift Basis Attendance Computation: How Does This Affect Payroll Types On a Legal Holiday?
Enable the Separation of Working hours and Holiday hours: The employee will have 8 Hours under Total Hours Worked for unworked/worked holidays only (Absent not included) Note: The +8 Legal holiday is a pre-requisite for this policy.
If the policy is set to separate the basic pay and premium, the Legal Holiday (LH) premium in the Overtime (OT) Table should be set to 100%.

Given this setup, the daily paid employees will be credited with the basic pay even if they did not report to work on the said holiday. Additionally, if they report to work on the said holiday, they will be given a 100% premium on top of the basic pay.

However, if they are with a "no work no pay" basis for the daily paid/part-time, the separation of basic and LH is not to be implemented, thus, the Legal Holiday (LH) rate should be set to 200% instead for Part-Time in the OT table in Sprout Payroll.

Here is the related KB article on How to Create OT Tables? / How to Assign OT Tables for Synced Accounts.

Here are the other daily paid policies we recommend to be enabled:
Show Total Hours Worked: To show total hours worked in the summary tab of the daily paid employee appearing on the attendance report
Enable Part-time Attendance Report In Excel: To show hours worked in the detailed tab in attendance
Enable Monitor Schedule Part-Time Hourly (Backend Policy name: monitorSchedulePartTimeHourly): To have correct computation for daily/hourly paid employees (hours rendered within shift excluding break under Total Hours Worked - basic pay)

If you wish to modify or change any policy here, you can submit a Change Request Form to us.

Additionally, please note that as we currently have the effective date set, any changes in the backend policies will take effect from the time the request was processed, moving forward. To know more about this, please visit our KB article here: Date Tagging: Company Policy.

We hope this helps! Let us know if you have questions in the future.

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