CONTENT
- Starting flexitime tracking
- Defining regular weekly working hours
- Impact of record types on flexitime
- Flexitime in working hours input
- Tracking and reporting flexitime
- Recording flexitime leave
- Frequently asked questions
Starting flexitime tracking
To track flexitime, working hours recording must be enabled. Working hours recording is part of the payroll and working hours recording add-on service. Set the start date for flexitime tracking and the flexitime balance at the start for the employee. The information is saved in the employee's basic data tab under time management information.
Salaries > Personnel > Employee listing > time management information
Defining regular weekly working hours
Regular working hours can be defined either in the employee's employment information and/or in the salary model's working hours recording tab. The working hours set for the salary model apply to all employees linked to that salary model. The regular weekly working hours set for the salary model can be overridden by setting the regular weekly working hours information in the employee's employment information.
Access the salary model settings as follows: Salaries > Payroll > Salary model management > click the formulas icon on the salary model row > working hours recording tab
Regular working hours are saved in the regular weekly working hours column.
Employee's employment information can be found here: Salaries > Personnel > Employee listing > click the employee's name > employment tab When you open the active employment for editing, you can define the regular weekly working hours (see image below, point 1).
Read more about part-time employee working hours recording and flexitime tracking.
Impact of record types on flexitime
Record type must have the option selected in "use in flexitime calculation", otherwise the record type does not affect flexitime when making time entries. Record type settings can be found in Salaries > Settings > Payroll settings > Record types > click the desired record type
If you want to create a new record type, click the function "add new record type".
If working hours are recorded without the option "use in flexitime calculation" being active, note that the entries do not affect flexitime calculation.
Flexitime in working hours input
Working hours are recorded in the working hours recording function Working hours > Working hours recording
Daily flexitime
If the employee has flexitime tracking enabled, flexitime is calculated daily in the Working hours recording function. The program automatically compares the hours recorded for the workday to the regular weekly working hours amount in the salary model or employee settings.
In the example, the workday duration is 7.5 hours (= regular weekly working hours 37.5 hours divided by five workdays), so Tuesday's 9.5-hour workday adds 2 hours to flexitime and Wednesday's 6 hours reduce flexitime by 1.5 hours.
If the added record type does not affect flexitime, an info mark appears next to the selected record type, providing more information when hovering over it.
Flexitime balance
The accumulated flexitime balance is visible in the upper right corner of the working hours input view if the employee has flexitime tracking enabled.
Tracking and reporting flexitime
Flexitime can be tracked in working hours reports under Working hours > Working hours reports > report format: daily working hours report
Flexitime balances are shown in the report, detailed from the used working hours, and abnormal working hours entries are presented in red for clarity. The report easily shows the flexitime balance at the start of the selected date range and the flexitime balance at the end of the selected date range.
Recording flexitime leave
If an employee is on a full day of flexitime leave, which should reduce the employee's flexitime balance by a full day's working hours, a new "Flexitime leave" record type is needed, which does not affect the flexitime balance. The record type should not have the "use in flexitime tracking" option active.
Flexitime leave is recorded in working hours recording with two record types:
- Normal hourly work 0.00 h
- Flexitime leave 7.5 h
Normal hourly work reduces the employee's flexitime balance by 7.5 hours, and the Flexitime leave record type completes the working hours bookkeeping. For tracking and reporting taken flexitime leaves, it is important that flexitime is recorded with its own record type in working hours recording.
Frequently asked questions
Q: How can flexitime be paid in Netvisor?
A: Technically, flexitime can be paid in Netvisor, but in practice, the basis for paying flexitime should be checked from the working hours law and the applicable collective agreement.
1. Create a new salary type Paid flexitime
Flexitime paid with this salary type will be included in the payslip, and the salary type must have allocations and, if necessary, income type allocation if this is reported to the income register, like other paid salaries.
Salaries > Payroll > Salary model management > Select from the salary model > Formulas > Salary type formulas tab > Add new salary type and link to salary model
- Group: Salaries and allowances
- Payroll list group: Not considered
- Source: User formula
- Income type: Select appropriate income type according to income register instructions
- Reporting: Shown in reports
- Calculation: Included in calculation by default
- Payment: Paid in money
- Bookkeeping settings: Provide desired bookkeeping accounts
- Linking: Add this salary type to Salary in money salary type formula
- Save
2. Create a new record type for paid flexitime
A record type is needed to record paid flexitime in working hours. This way, it remains visible in working hours how much flexitime has been paid to the employee at any given time.
Salaries > Settings > Payroll settings > Record types > Add new record type
Select the same salary model where Paid flexitime was created and provide a formula for the record type, at what rate the hours are paid to the employee. Below is an example of a record type formula Hours x 1 x Hourly pay = Paid flexitime.
3. After payment, update the employee's flexitime balance
Once flexitime has been recorded and paid to the employee, the payroll accountant must update the start date for flexitime tracking and the flexitime balance in the employee's information after the flexitime has been paid, so that old working hours entries no longer affect the flexitime balance.
Salaries > Personnel > Employee listing > Select employee's name > Employee information > Time management information
Example of paying flexitime
There can be many different practices and agreements in companies for paying and recording flexitime, but here is a simple example of how flexitime can be handled in Netvisor in the employee's working hours and flexitime balances.
1. Starting situation: The employee has accumulated flexitime from 1.1.2024 totaling +50 h, of which 5 h will be paid now.
2. The employee records in working hours on the date 20.5 how many hours of flexitime are paid with the record type "80. Paid flexitime" totaling 5 h. On the same day, the employee has worked normally for 7.5 h.
3. Paid flexitime appears on the May payslip according to the record type formula for payment.
4. The record type does not automatically reduce the employee's hours from the flexitime balance, so after payment, the payroll accountant must update the flexitime tracking start date to the payment date and deduct the paid flexitime from the existing flexitime balance. In the example, the employee had accumulated 50 h of flexitime from 1.1.2024, of which 5 h were paid now, so the remaining balance is 45 h of flexitime, and the flexitime was paid on 20.5.2024, so update the new flexitime tracking start date to the next day 21.5.2024
5. When the flexitime tracking start date and balance are updated, the employee's working hours recording shows a balance reduced by the paid flexitime, i.e., 45 h.
Q: How do I update an employee's flexitime balance when working hours change?
A: When an employee's working hours change, follow the steps below to update the flexitime balance:
1. Open the employee's information from the employee listing.
2. Update the flexitime tracking start date. Enter the date when the change in working hours took effect. This action prevents old time entries from affecting the new flexitime balance.
3. Set the new flexitime balance. Go to "Flexitime at the start of tracking" and enter the employee's new flexitime balance from before the change date. This ensures that flexitime tracking continues uninterrupted and old hours do not affect the new flexitime balance.
Q: How do I update the flexitime balance retroactively when working hours have changed?
A: If the flexitime balance has not been updated in time, you can correct it retroactively by following these steps:
1. Open the employee's information from the employee listing.
2. Check the original flexitime balance and start date from the time management information.
3. Download the working hours report for the desired period. Use the report to determine the correct flexitime balance for that period. Run the report up to the day that was the last day with the changed working hours. So, if working hours changed starting 1.5, check the flexitime balance for the day 30.4.
4. Update the flexitime balance and start date in the time management information. Set the new flexitime balance and date from which flexitime tracking continues, i.e., if working hours changed starting 1.5, set the Flexitime tracking started to 1.5 and Flexitime at the start of tracking to the working hours report flexitime balance per 30.4.
5. Repeat if necessary, if working hours have changed multiple times during the review period.
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