The Overtime Entitlement Bank in Vip

May 2007 Version 07/01

THE OVERTIME ENTITLEMENT BANK IN VIP

All overtime and banked time worked must be approved in advance. The approval process can be determined by the unit, and should be discussed with each employee.

Overtime, paid or credited at 1.5x or 2x, occurs when the employer requires that the employee put in extra hours. Payment versus time off is at the employee’s option.

Banked time, credited at straight time, occurs when an employee requests the opportunity to work extra hours now in order to have time off in the future.

Overtime worked can be paid through time entry. The rate of pay at 1.5x or 2x is dependant on the Employment Standard or Union/policy rules (the rules are built into VIP). However, an employee, with unit approval, may choose to bank the overtime for future time off. The transaction codes to use for banking the hours worked (putting time into the overtime entitlement bank) and for recording the time off at a later date are described below.

If hours are being banked at straight time in order to be used within the same pay period it is not necessary to report them through time entry.

1035 – use this code when you are entering overtime hours that the employee is required and approved to work. Enter only the hours actually worked – VIP will apply the rules for overtime (1.5x or 2X banked as appropriate). For example, if the employee is required to work 2 hours, enter 2 hours using 1035. VIP will enter either 3 or 4 hours into the bank, depending on the overtime rules for that particular employee (that is, 2 hours x 1.5 = 3; or 2 hours x 2 = 4)

1150 - use this code when you are entering banked time hours which have been worked at the request of the employee for future time off. If you enter one hour, one hour will be put into the bank. For example, if the employee works 3 hours at his/her own request, enter 3 hours using 1150. Three hours will be entered into the bank.

Please note that the entitlement bank in VIP (Overtime Entitlement Bank) is the same for both banked overtime and banked time. It is the transaction code that determines if the hours worked are entered into the bank at 1x or 2x.

All hours in the bank (whether they were entered at straight or overtime rates) pay out hour for hour.

1045 – use this code when the employee takes time off from the overtime bank. This code pays at straight time and debits the hours in the bank. For example, when an employee takes 7 hours off, enter 7 hours using 1045. The employee will be paid for 7 hours at straight time and the bank will decrease by 7 hours.

Please note that hours entered (using codes 1035 and 1150) in a pay period cannot be paid out (code 1045) in the same pay period.

To check if the overtime bank has been adjusted in VIP, go to the Employee Information (VIPEMP) module. Under the Payroll menu, open the Entitlement Bank window. Enter the employee number and then "20" in the Entitlement Bank field and execute. The balance of hours is found under "Current Entitlement" in the Balance Hours field. Alternatively, you may run the Individual OT report to see if the bank has been updated.

For information on the Individual OT (Overtime) Bank report please visit:

http://www.umanitoba.ca/admin/human_resources/services/hris/documentation/index.html

You will have to submit a Corrections and Additions Timesheet to Payroll Services in order to transfer banked time balances for a shadow system into VIP.

07/01