Linked Earnings

Linked Earnings provides a means of grouping earning components to Hours Types and/ or Allowance/Deductions for calculation purposes.

You can use Linked Earnings for a number of purposes:

  • To group earning components for calculating percentage based salary sacrifice;
  • To group earnings to be included in the calculation of Super Gross (e.g. Salary Package - Bottom Up);
  • To group earnings to be used in the calculation of Ordinary Pay;
  • To group earnings that make up a theoretical salary amount, calculated by the Superannuation Transfer module, as required by a Superannuation Administrator; and
  • To configure which Hours Codes contribute to the Hours Code
  • To split the costing for an allowance and it's associated On Costs by Hours Worked.
  • To split the costing for an Hours Payment (e.g. overtime) and it's associated On Costs by Hours Worked.

Each Linked Earnings record must be identified by a unique combination of the following:

  • Valid classifications for percentage-based calculation are S, V, Y, and Z.

  • Allowed Linked Records of following Allowance/Deduction codes: A, B, C, G, I, L, N, O, U, V, W, X, Y, Z, 1, 2, 3, 5.

 

  • Allowance codes with a Classification of '1' or '2'.

 

Use a combination of:

  • Linked Record Type of SUPERTFR (Superannuation Transfer)
  • Superannuation Fund Plan ID

This links the selected earnings components to a superannuation fund.

 

Use a combination of:

  • Valid A/D Code that cost splitting is to be applied to
  • Code(s) for Ordinary Time

This allows users to select either A/D Codes from the Linked Earnings field.

 

Use a combination of:

  • Valid A/D Code that cost splitting is to be applied to
  • Code(s) for Ordinary Time and Overtime but not Leave

This allows users to select either Hours Codes from the Linked Earnings Code field.

 

For any given period, a user who would like to see overtime costs split based on the way the normal hours have been costed in the pay period would need to:

  • Change the "Include in costing" flag to 'L' on the Overtime Hours Codes.
  • Navigate to the Linked Earnings screen and create a new record.
  • Select 'CSHOURS' in the "Linked Earnings Code" field.
  • Select 'H' in the "Hours or AD" field.
  • Select the Normal hours code in the "Hours or AD code" field.

The screenshot below shows the setup for the 'O/T 1.5' code. To apply the same setup to a 'O/T 2.0' code, the user can use the Clone option and then change the Linked Earnings Code to the 'O/T 2.0' code.

This screenshot shows a scenario wherein the First Aid allowance costing will be split based on the normal, annual and sick leave hours costing.