How to Process Payroll for Salaried Employees Taking Unpaid Time Off

Issue:

You need to reduce a salaried employee's pay for unpaid time off, but 7shifts Payroll is incorrectly calculating their pay for a full 40 hours. 

Why this happens:

7shifts Payroll does not currently have a direct feature to track unpaid time off for salaried employees and automatically reduce their pay. Salaried employees are paid a default of 40 hours per week, even if their unpaid time off has been approved in 7shifts.

Solution:

To correctly process payroll for a salaried employee who has taken unpaid time off, you must use an off-cycle payroll run. This allows you to manually input the precise number of hours they should be paid for.

Steps to Adjust Payroll:

1. Remove Employee from Regular Payroll: First, make sure the salaried employee is not included in your standard payroll processing for the period during which they took unpaid time off. This prevents them from being overpaid.
2. Initiate an Off-Cycle Payroll: Set up and run a separate, off-cycle payroll specifically for this salaried employee.
3. Manually Enter Reduced Hours: When you are configuring the off-cycle payroll, you will need to choose "Manual Entry" as the method for entering hours. At this point, calculate the correct, reduced number of hours the salaried employee should be paid for (subtracting the unpaid time off from their standard working hours) and manually input this value.

By following these steps, you can ensure the salaried employee's pay accurately reflects their unpaid time off.