Please note, Pay by Area is currently in BETA and will be available to all customers June 1, 2020
It’s commonplace to have employees qualified to work across different roles and responsibilities. For example, Alyssa works in both 'Drive-Thru' and 'Delivery' and will be paid two different rates depending on which area she works.
Use Pay by Area, to allow Alyssa and other team members flexibly move between roles, while ensuring they’re paid correctly for the work they’re performing. Please note, Pay by Area replaces the older 'Areas of Work' in Deputy.
In this article you'll learn:
- What Pay by Area is
- How to set up Pay by Area for employees
- How to remove a Pay By Area for an employee
- Tips and resources
- Step-by-step examples using Pay by Area
Area of Work is now Pay By Area
If your employees were assigned to 'Area of Work' as their pay rate prior to January 2020, this is now transferred to the new version with “Hourly” pay rate selected as the default as seen here below. If you’re unsure, check by going to your employee’s profile > Pay Rates tab.
With this change, you will need to make adjustments if you would like to:
- include a different rate for weekends and public holidays
- use a completely different pay rate that will calculate overtime hours, such as an Award template (in AU) or a Labor Law template (in USA)
Before we set this up using the steps below, lets quickly refresh on what an Area is within Deputy.
Areas are where you roster or schedule your employees. For example, If your business is a coffee shop, you might consider using the areas: Barista, Roaster and Service.
You can also think of Areas as "jobs" or "roles" within your business such as a Barista. In this way, you might have several staff that could work across all three of these Areas(Barista, Roaster, Service).
Learn more about setting up Areas in Deputy.
Assign Pay by Area
Step 1 Set Up Employee Pay Rates
To assign Pay by Area to an employee, navigate to ‘People’ tab and click ‘Edit’ on the employee that you would like to apply area pay rates to.
Click ‘Pay Rates and Leave’ on the left panel.
Pro Tip: Remember, if your employees we're using 'Area of Work' the difference is 'Hourly' pay rate will be pre-selected and the hourly rates will be the same.
Select the default pay rate your employee will be paid when they’re not working in a specific area. Select the(default) pay structure you would like to apply for the employee from the options:
- Hourly (40h +1.5x Overtime)
- Rates per day
- An Award from the library
- USA Federal and State Employment Terms
Make sure you have entered all the hourly and daily rates required.
Pro Tip: If you have chosen an Award or Federal or State Labor Law from the library, you only need to enter the base rate and the multipliers will be adjusted accordingly.
Pro Tip: When a pay rate is selected, all multipliers and allowances appear on screen which can be a long view to scroll through. Use the ‘View all rates & allowances’ to see all or collapse them on screen.
Step 2 Sept Up Pay By Area
Click ‘Add pay by area’ which will open up “Area Group 1”.
- Add multiple areas you want to apply a different pay rate from the default one you’ve just set up.
- Select the pay rate you want to apply to the Area Group. This is the same process as setting up the default pay rate.
- Remember, you only need to enter the base rate and the multipliers will adjust accordingly.
- Click 'Save Details'
Pro Tip: Confirm the Time Sheet Export Code and review the proper Leave Entitlements are listed for the employee. Click here to learn more about Leave Management.
Remove Pay by Area Set Up
If you no longer want to use a Pay By Area for an employee, you can remove it. To remove a Pay by Area, click the 'X' in the upper right on the 'Area Group'.
Common Ways to Use Pay by Area
Example 1 - Pay someone for higher duties
Mario works as a senior bartender, but there are days where the bar manager, Chloe is sick or has taken time off. Mario will then need to work as a bar manager in Chloe’s absence.
The hourly rate for a bar manager is higher than a senior bartender, so Mario will need to get paid the bar manager rate whenever he is replacing Chloe.
In this case, set up an area called Bar Manager and another for Senior Bartender. Assign a default pay rate for Mario, and add a ‘Pay by Area’ for Bar Manager area with the base rate higher than his default rate. Whenever Mario works in the Bar Manager area, the higher rate will be applied.
Example 2 - Working in hazardous conditions
Bronte works for a construction company and at times she needs to work with certain equipment where it’s considered a hazardous work condition. There is a rate increase for this type of work, for example, a 20% supplement on the base rate i.e. if base is $25, Bronte will be assigned a $30 base rate whenever she works with these equipments.
In this case, set up an area Hazardous Work Zone or be more specific by using the equipment / tool as the area name. You’ll need to set up Pay by Area for every employee that’ll be working in this area, and specify the hazardous duty pay for each individual employee; assigning it to the area you’ve created.
Example 3 - Carrying out a different job than usual
Carissa works at a cafe as a host and waitress, but the two roles have different pay rates. This means she needs to have two rates assigned because as a waitress, her base is $22/hour and as a host it's $25/hour.
In this case, set up two separate areas, Host and Waiter, choose either the $25 or $22 as her default pay rate (the default could be the area where she mostly works in or what her contract / job offer letter states). Set up a Pay by Area for the additional area(s) she works in, these will most likely be the higher rate.
If my employees were using “Area of Work” will anything change with their timesheets or pay?
No, the difference is that 'Hourly' pay rate will be pre-selected as the default but the hourly rates will be the same.
For example, if the default hourly rate is $20 and the hourly rate for Area Group 1 (i.e. ‘Barista’ and ‘Management’) is $30. In the new version, the default weekday, Saturday, Sunday and public holiday rate will be $20 and the weekday, Saturday, Sunday and public holiday rates for Area Group 1 will be $30.
See Previous version of Pay by Area, known as Areas of Work.