Create payroll adjustments

Overview

Use payroll adjustments to make positive and negative corrections to an employee's payroll. For example, if a technician should have received a pay bump on a specialized job, you can add a payroll adjustment to the invoice. You can also use payroll adjustments to account for labor activities outside of ServiceTitan that you want to include when calculating job costing.

Things to know

• Commission base payroll adjustments are used to increase an individual technician's commission while keeping the total commission amount for the job the same. If Bob receives a $50 commission base payroll adjustment, there's $50 less available for other technicians receiving splits on the invoice.

• To make adjustments for hourly technicians, you can edit technician timesheets.

• To view payroll adjustments on invoices and job records, office employees must have the View Payroll Adjustments permission enabled. To enable this permission, see Set permissions for an individual employee.

Add a payroll adjustment to an invoice

1. Search for the invoice you want to add the adjustment to and click it to open it.

2. Click Add a payroll adjustment. 

3. Enter the payroll adjustment information:        

   1. Type: Select one of the following:                 

      1. Direct: Adjustment is directly earned by the employee                        

         Note: This is the most common type of payroll adjustment. If you use Configurable Payroll, this is the only type you can use.

      2. Commission Base: Based on the technician's commission rate. Example: If the adjustment is $200 and the technician's commission rate is 10%, the technician earns $20.                        

         Note: This reduces the commissionable base for other techs on the invoice.

      3. Labor: Used for contractors and laborers. Counts as a cost on the invoice, reducing the commissionable base.

      4. Advance: When technician is paid before the job is added to payroll. Amount is deducted from the technician's gross pay when the job is included in payroll reports.

      5. Sold Advance: Used when the technician gets Sold by credit before the job is added to payroll. The sold by percentage is applied to the adjustment amount. The total is deducted from the technician's gross pay when the job is included in payroll reports.

   2. Code: Earning code associated with the adjustment invoice.                

      Note: This field appears only if your account is configured to use earning codes.

   3. Posted On: Date you want the payroll adjustment to show as posted                

      Note: Use a future date that hasn't already been processed in payroll. Otherwise, the adjustment will not be recognized.

   4. Rate: Base amount of the payroll adjustment. To deduct from pay, use a negative number.                 

      Note: For commission base payroll adjustments, this amount is multiplied by the technician split.

   5. Quantity: Number used to multiply the Rate by.                

      Note: Enter 1 for standard payroll workflows.

   6. Amount: Automatically calculated as Rate x Quantity.                

      Note: You can view the net total of a commission base payroll adjustment in the Payroll (Detail) Report

   7. Memo: Details or notes about the adjustment

4. When you're finished, click Save. The saved adjustment appears in the Payroll Adjustments section of the invoice. 

Add a payroll adjustment directly to an employee

You can make payroll adjustments that are not associated with a job or invoice. These adjustments are not used in job costing.

To make a direct payroll adjustment:

1. Go to the navigation bar and click Reports.

2. Click the Payroll (Detail) report to open it.        

   Tip: In the search field, enter a few letters of the report title for quick access.

        

3. Use the Technician, From, and To dropdowns to set filters for the technician you want to add an adjustment to.

4. Click Run. 

5. In the Direct Payroll Adjustments section, click Add Payroll Adjustment. The New Payment Adjustment pop-up opens.

6. Add details to the fields:        

   1. Posted On: Date you want the payroll adjustment to show as posted                

      Note: Use a future date that hasn't already been processed in payroll. Otherwise, the adjustment will not be recognized.

   2. Rate: Base amount of the payroll adjustment                

      Tip: To deduct from pay, enter a negative number.

   3. Quantity: Number used to multiply the Rate by.                

      Note: Enter 1 for standard payroll workflows.

   4. Memo: Details or notes about the adjustment

   5. Type: Select one of the following:                

      1. Direct: Adjustment is directly earned by the employee                        

         Note: This is the most common type of payroll adjustment. If you use Configurable Payroll, this is the only type you can use.

         1. Commission Base: Based on the technician's commission rate. Example: If the adjustment is $200 and the technician's commission rate is 10%, the technician earns $20.                                

            Note: This reduces the commissionable base for other techs on the invoice.

         2. Labor: Used for contractors and laborers. Counts as a cost on the invoice, reducing the commissionable base.

         3. Advance: When technician is paid before the job is added to payroll. Amount is deducted from the technician's gross pay when the job is included in payroll reports.

         4. Sold Advance: Used when the technician gets Sold by credit before the job is added to payroll. The sold by percentage is applied to the adjustment amount. The total is deducted from the technician's gross pay when the job is included in payroll reports.

   6. Code: Earning code associated with the adjustment invoice.                

      Note: This field appears only if your account is configured to use earning codes.

7. When you're finished, click Save. 

Want to learn more?

• See Payroll (Detail) Report: Primary payroll settings