HRM-System/docs/PLAN-time-exempt-deductions.md

Project Plan: Time Exempt Deductions

Context

The HR team requires that even if an employee's salary profile is marked as "Time Exempt", the system must still deduct for tardiness (Late) and early departures (Undertime). However, the Time Exempt status will continue to block Night Differential and Regular Overtime calculations.

Phase 1: Update Time Exempt Logic

• File: app/Services/PayrollService.php
• Action: Modify the is_time_exempt override block.
• Details: Remove the lines that zero out $lateDeduction and $undertimeDeduction. Leave the overrides that zero out $nightDiffAmount and $regularOtTotal.

Phase 2: Verification

• Run a payroll test calculation for Paul Rei Paas (who is Time Exempt and has late hours).
• Verify that a Late Deduction and/or Undertime Deduction line item appears in his deductions array.
• Verify that Night Differential remains zero, honoring the exemption status.