Automatic TOIL/RDO works with the Timesheet function in the Payrun screen.
When the Timesheet is saved, SmoothPay assesses the entered hours against the employee’s settings and creates the transactions required to bank qualifying time.
Depending on the payroll jurisdiction, the terminology may vary between TOIL, RDO, and Flexi-time. References to these terms in this guide describe the corresponding time-banking functionality.
Important: Automatic TOIL/RDO and automatic overtime cannot operate together for the same employee. Only one automatic method can be used at a time.
Configure automatic TOIL/RDO
Automatic TOIL/RDO requires:
an applicable calculation basis and cutoff for the employee
the relevant pay codes to be included in the calculation
The Options tab in the Settings screen contains the defaults assigned to new employees. Existing employees can be configured individually, or the defaults can be applied to all staff using the available spanner action.
Set the company defaults
First, open the company settings:
Go to the Settings screen.
Select the Options tab.
Click the Edit button.
Under the RDO/TOIL options, complete the fields as follows:
Select the required RDO basis.
Enter the RDO cutoff.
Click Save.
Depending on the payroll jurisdiction, these fields may be named TOIL basis and TOIL cutoff.
RDO basis
The RDO basis determines the method used to calculate how qualifying time is banked.
The available options are:
None
Daily above threshold
Weekly above threshold
Pay cycle above threshold
Constant saving
Percentage saving
RDO cutoff
The RDO cutoff records the threshold or saving value used by the selected basis.
The value entered depends on the calculation method:
Threshold methods use the number of ordinary hours permitted before additional qualifying time is banked.
Constant saving uses an hours value.
Percentage saving uses the entered value as a percentage.
For example, a daily threshold with a cutoff of 8 banks qualifying time above eight hours per day.
For more information about the available settings, refer to:
Apply settings to existing employees
Changing the default basis and cutoff in Settings does not automatically update those values for existing employees.
You can apply the configured settings to all existing staff or configure employees individually.
Apply settings to all staff
This action is only available to the company Owner.
After saving the company defaults:
Click the spanner button beside RDO basis or TOIL basis.
Select Apply RDO settings to all staff.
SmoothPay applies the configured automatic TOIL/RDO settings to existing employees.
Use this action when the same settings should apply to all or most staff. Employees who require different settings can then be configured individually.
Configure an individual employee
To open the employee’s settings:
Go to the Staff screen.
Select the employee.
Select the Contract tab.
Select the nested Overtime/RDO tab.
Click the Edit button.
Under Automatic RDO options:
Select the required RDO basis.
Enter the employee’s RDO cutoff.
Click Save.
The employee’s settings determine the method and threshold or saving value used for their automatic TOIL/RDO calculation.
Depending on the payroll jurisdiction, the nested tab may be named Overtime/TOIL, and the fields may be named TOIL basis and TOIL cutoff.
For more information about these employee settings, refer to:
Check the TOIL/RDO Leave code
Automatic TOIL/RDO requires a Leave code configured to record the time being banked.
Check that a suitable Leave code exists. If it does not, create one before using automatic TOIL/RDO.
The Leave code must have the following settings:
Classification: Select TOIL or Rostered Days Off, depending on the payroll jurisdiction.
Use or accrue: Select Hours.
For more information about creating and configuring Leave codes, refer to:
Select the codes included in the calculation
SmoothPay needs to know which pay codes should contribute to automatic TOIL/RDO calculations.
This is controlled by the Counts towards TOIL/flexi-time option against each applicable code.
To include a Work code:
Go to the Codes screen.
Select Work codes.
Select the required Work code.
Click the Edit button on the interaction bar beneath the code list.
Then adjust the settings:
Select Counts towards TOIL/flexi-time.
Click Save.
Repeat these steps for each Work code that should be included.
For example, select this option against the ordinary-time Work code when ordinary hours should contribute to the employee’s automatic TOIL/RDO calculation.
The option can also be configured against applicable Leave codes where leave should contribute to the calculation.
For more information about configuring Work codes, refer to:
Use automatic TOIL/RDO
Once the configuration is complete, enter the employee’s hours through the Timesheet.
To open the Timesheet:
Go to the Payrun screen.
Select the employee.
Click Timesheet on the Payrun control bar.
To record the employee’s time:
Enter the total hours worked against each applicable date using decimal time.
Review the entered hours.
Click Save.
SmoothPay creates the corresponding Work transactions and calculates the time to be banked using the employee’s settings and the codes included in the calculation.
The time being banked is generated as a negative leave transaction under the Leave taken tab.
The Work transactions retain the entered hours. The negative leave transaction offsets the time being banked, so that time is added to the employee’s TOIL/RDO balance as part of the pay process.
For more information about entering hours and using the Timesheet, refer to:
Example: Daily TOIL/RDO
An employee has a daily threshold of 8 hours, and their ordinary-time Work code is included in the automatic TOIL/RDO calculation.
The employee works:
8 hours on Monday
9 hours on Tuesday
8 hours on Wednesday
9.5 hours on Thursday
8 hours on Friday
The employee has worked 42.5 hours in total. Tuesday contributes 1 hour above the daily threshold, and Thursday contributes 1.5 hours.
When the Timesheet is saved, SmoothPay creates:
Transaction | Hours |
Ordinary-time Work transactions | 42.5 |
Negative TOIL/RDO leave transaction | −2.5 |
The employee is paid for 40 hours, and 2.5 hours are banked as TOIL/RDO as part of the pay process.