Average Rate Rules

A formula is specified for calculating average rates based on an employee's earnings history. Hours Types and Allowance/Deductions are selected and used when calculating an average pay rate.

Prerequisites

Rules and Guidelines

  • The Earnings History and Timecard Cost History files are used to calculate the average rate.

  • At least one payrun must be processed before average rates can be calculated.

  • The result of an average pay rate calculation is stored in the relevant employee's Other Payment Details Average Rate fields, with the final result available for use by Calculation Methods.

  • The Hrs or A/D Code column on the Average Rate Rules screen does not support Classification 'K' A/D Codes.

Field Information

This is a code that represents an Average Rate Rule.

A description can be entered for the Average Rate Rule to help identify the purpose for the Average Rate

Specify if weeks where no pay was paid will be included in the average calculation.

Option Description
Blank Hourly
D Daily
W Weekly

This field is only enabled and becomes mandatory when the Prevar *PP_LEAVE_UNITS is set to 'Y', and Program Control PEP39 Position 15 is set to 'A', and Average Pay Rate 7, 8, or 9 is selected in the Type field.

  • If W is selected for Unit Type and the No of Weeks to be Averaged is 52 or 4 and Incl/Excl Zero Weeks is set to I, the calculation will look at the Earnings History for the 52 or 4 week period and divide by 52 or 4 to get a weekly rate. Example: 65750.00 / 52 = 1264.4231 or 5345.00 / 4 = 1336.25.
  • If D is selected for Unit Type and the No of Weeks to be Averaged is 52 or 4 and Inc/Excl Zero Weeks is set to I, the calculation will look at the Earnings History for the 52 or 4 week period and divide by number of working days for the average period. Example: 65750.00 / 260 = 252.8846.

    Note: Number of days is taken from the Hours code nominated in the Program Control PEP39 Positions 16 - 17.

  • If the required No of Weeks to be Averaged on Earnings History (e.g. 35 ) are less than the number nominated on the Average Rate Rules (e.g. 52 ), the calculation will look at the earnings for the 35 week period and divide by the number of working days in the 35 weeks which is stored in the Hours code. This calculation will keep rolling until 52 weeks and then will always use the last 52 weeks.

  • If Incl/Excl Zero Weeks is E, the calculation will look at the Earnings History for 52 or 4 week period and divide by the actual number of pays found in the period.

This field is mandatory when Unit Type is Hourly.

Option Description
B Base Hours (Hours for average period sourced from current Base Hours x Weeks in average period)
C Actual Hours (Hours for average period calculated using total of all included Actual Hours paid during average period)

Select the start date from the following options:

Option Description
1 Adjusted Service Date
2 User Date 2
3 User Date 3
4 User Date 4
5 User Date 5
6 User Date 6
7 User Date 7
H Hire Date

This is the earliest date/ starting point weeks can be counted from for Average Rates calculation.

Specify the number of weeks over which the average is to be calculated.

This check box determines whether Retro Payments will be included in the calculations.

When ticked, only Retro Payments with a Costing Date within the Average Period will be included in the Average Rates calculation

Any Retro payments with a Costing Date outside of the Average Period will still be excluded from the calculation

Please note that this option does not have any affect on Retro Pay processing results

Option Description
Ticked Include Retro Payments are in calculation
Unticked Exclude Retro Payments are in calculation

This check box determines whether Records with Zero Tax Weeks will be included in the calculations.

Option Description
Ticked Include Records with Zero Tax Weeks are in calculation
Unticked Exclude Records with Zero Tax Weeks are in calculation