Allow/Deduct by Hours

This window allows for Allowance and/or Deduction amounts to vary according to the number of hours worked by an employee. A factor may be specified to indicate the amount by which the variation is calculated. For example a uniform allowance may vary according to the number of hours worked.

Prerequisites

Rules and Guidelines

  • Where an A/D Code is used as A/D by Worked Hours, the Prorate flag on the Allow/Deduct Codes will be ignored, and the rate used will be the applicable rate as at that date.

  • You can set one A/D Code and link several Hours Codes to that A/D Code.

Field Information

This field displays the selected Allowance/Deduction Code.

This is the rate to be used for this calculation.

Options:

The system calculates the rate of variation to an hourly rate.

Code Description
B This refers to the Base Hours.
W This refers to the Worked Hours (i.e. the total of the average hours per week day, as specified in Base Hours).
Blank The Allowance/Deduction hourly amount as specified in the Employee Salary window is taken as the hourly rate.

If option 'B' is used, the Rate will be calculated as follows:

  • Standard Amount / (Pay frequency * Base Hours)

If option 'W' is used, the Rate will be calculated as follows:

  • Standard Amount / (Pay frequency * Scheduled Hours), wherein Scheduled Hours is the sum of the hours listed in Days 1 to 7 of the base hours code.

If nothing is selected, the Rate will be the Standard Amount.

Base Hours Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7
38 8 8 8 8 8    

Standard Amount: $10

Pay Frequency: Monthly

Rate will be $10.00 / (4.3333 * 38) = 0.06073

Rate will be $10.00 / (4.3333 * 40) = 0.5769

Rate will be $10.00

 

When ticked, this field will calculate the Allowances and/or Deduction by Worked Hours regardless of the Pay Header selection. When unticked, the Allowance and/or Deduction by Worked Hours will be calculated according to the selection of the Pay Header (i.e. when set to 'N', no calculations will be made).

This field is ticked by default when a new code is created or when the databases are updated.

This is an Hours Type code that the Allowance/Deduction variation is calculated with.

Enter a calculation factor.

Example:

A factor of 1.5000 would cause the rate to be multiplied by 1.5 when the Allowance is applied.