Reason Codes

Reason Codes

Reason codes classify hours worked into specific payroll categories. When entering an employee’s hours on a daily plan, you can select a reason code to indicate how those hours should be categorized for payroll purposes.

The following categories can represent activities or conditions such as:

• Operating equipment

• Performing maintenance

• Bereavement leave

• Paid time off (PTO)

Reason codes can also identify pay types like standard time, overtime, or double time.

Reason codes must be enabled and configured in your organization and project settings. For more details, see Organization settings.

Premiums

You can assign a premium rate to an employee’s work hours to ensure accurate pay for specific tasks. Premiums apply on an hourly basis and are typically used when an employee performs work outside their normal job duties.

For example, an employee might work six hours at a regular labor rate and two hours as a welder. You can assign two reason codes- one for the six hours and one for the two hours- and apply a premium code to the welding hours. This ensures the correct rate is reflected when the information goes to payroll.

Premiums are set up in your organization’s Master data libraries. You can manage premiums for your project on the Assigned payroll indicators page.

Assign premiums