Linked Earnings

The Linked Earnings window provides a means of grouping earnings components, 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;
  • To configure which Hours Code contribute to the Hours Code;
  • To split the costing for an allowance and it's associated On Costs by Hours Worked; and
  • To split the costing for an Hours Payment (e.g. overtime) and it's associated On Costs by Hours Worked.

Prerequisite

Rules and Guidelines

  • About Linked Earnings
  • Each Linked Earnings record must be identified by a unique combination.
  • Allowance/Deduction codes flagged to Exclude from Salary Package in the Salary or Allow/Deduction windows may be included in the setup of Linked Earnings. Although the Allowance/Deduction is not displayed in the employee's Salary Package window, the value is included in the calculation.
  • For Classification S (Employer Contribution %) component in a Salary Package, the calculation of the gross amount will take into consideration the Linked Earnings Configuration if any. If the component has no Linked Earnings setup, the calculation will consider the Include in Super Gross flag setup for the AD Code.
  • When the option L("Costing Splits based on Linked Earnings") is used on an Hours or AD Code in the Include in Costing field with the appropriate Linked Earnings code, it can split hours in a way similar to the H option, but using the codes listed on the Linked Earnings screen instead.
  • When CSAD is selected, users will be able to select either AD Codes from the Linked Earnings Code field. When CSHOURS is selected, users will be able to select either Hours Codes from the Linked Earnings Code field. It is important to know, however, that when any of the two is selected, users will only be able to select A/D Codes with a value of H in the Hours or AD field and Hours Codes with a value of L in the Include in Costing field

Field Information

To setup the different Types, they must first be created by selecting the New button.

Select the Record Type according to its use.

Code Description
AZ Addition/Deduction Codes
CSAD Costing Split - A/D
CSHOURS Costing Split Hours
NBEN Notional Benefit
ORDPAY Ordinary Pay
SALC Salary Code
SUPERTRF Superannuation Transfer

 

Select a valid code based on the type selected.

Note: The L code splits the costing according to the Linked Earnings Hours for the Pay Separator while the M code splits the costing according to the Linked Earnings Hours for the Pay Separator / Costing Date.

 

Type or select the record type according to its use.

Code Description
A Allowance/Deduction Code
H Hours Type Code

 

Select the Hours or Allowance/Deduction Code to be linked.

This is the Classification corresponding to the Hours or Allowance/Deduction Code selected.