Night Differential is the additional compensation an employee is paid for hours worked between the hours of 10PM and 6AM.
When an employee is added, the Entitled Night Differential option will default to Yes. You can, however, edit this, by going to Employees>Click Employee>Earnings.
Click on the check box beside "Entitled Night Differential" to enable/disable Night Differential pay for the employee, then click Save.
Additional Compensation Rate
The additional compensation rate is set to 10% as a default. You can, however, determine your own Night Differential compensation rates, as this depends on your company. To edit the Night Differential compensation rate, go to Company Setup>Payroll>Day/Hour Rates. Enter the word “Night” in the search box to filter the Night Differential rates.
Hover your mouse in the section and click the pencil icon at the right hand side of the page. The fields will be enabled for editing. Make the necessary edits and click Save.
Note: To determine an employee's night differential amount, first calculate his hourly rate. The employee's hourly rate is calculated as basic salary * 12 / day factor / hours per day. Once you have determined the employee's hourly rate, multiply this by his night rates to get his hourly rate with night differential.
Night Shift Hours
The Department of Labor has defined the working hours eligible for Night Differential as 10PM to 6AM. You can, however, edit these hours per your company policies.
Go to Company Setup>Time>Night Shift.
Enter the Night Shift hours per your company policy and click Save.