Pay Rates

 The Base Pay Rate is the only rate which is mandatory. During the Hire process, the Payroll window requires the entry of a Base Pay Rate. It also allows the entry of an Award Rate, Other Rate, Pay Rates 4 to 8 and the Ordinary Pay Rate.

Payment of hours to an employee during a payrun will always be at the Base Pay Rate attached to the employee's record, unless the set up indicates that another rate should be used.

When a set up indicates that a Pay Rate other than the Base Pay Rate should be used and the Pay Rate associated with the designated source for the employee is zero, the original Base Pay Rate is used.
Example:- An Hours Type Code is set up to use Award Rate as the basis for payment but the employee has no Award Rate attached to their record. If the Hours Type Code was entered into time entry for the employee, they would be paid at the Base Pay Rate.

The Pay Frequency selected for the Base Pay Rate may, or may not, be extended to all the pay rates stored in your system.

Program Control Option, PAYFR may be used to control the Pay Frequency attached to rates other than the Base Pay Rate.

 The Award pay Rate and Other Pay Rate are provided to allow for the storage of alternative pay rates on the employee record.

Unlike Pay rates 4 to 8 the descriptions for these cannot be changed.

These alternative pay rates may be:-

• Attached to an employee's record on the Payroll window, from the Hire wizard
• Used in Calculation Methods.
• Linked to anHours Type Code, used as a basis for payment of this Hours Type Code.

Pay Rates 4 to 8 are provided to allow the storage of further alternative pay rates on the employee record.

The descriptions of these pay rates can be changed by using the Pay Rate Code Descriptions window.

These alternative pay rates may be:-

• Attached to an employee's record on the Payroll window, from the Hire wizard
• Used in Calculation Methods
• Linked to an Hours Type Code to be used as a basis for payment of this Hours Type Code.

When using these pay rates ensure that maintenance history is kept by enabling the following fields in the Field Number window.

• Pay Rate 4 - Field Number 132
• Pay Rate 5 - Field Number 133
• Pay Rate 6 - Field Number 134
• Pay Rate 7 - Field Number 135
• Pay Rate 8 - Field Number 136

Average Rates are used to pay employees based on the calculation of their average earnings over a specified period.

They are not linked to an employee during the Hire process. but added later using the Payment Details window.

The Ordinary Pay Codes can be used to calculate leave payments to employees.

Ordinary Pay Rate is used to calculate a different pay rate and can be used in Calculation Methods.

An Ordinary Pay code is attached to an employee in the Payroll window of the Hire workflow and may be maintained through the Payment Details window.

This Ordinary Pay Rate can be calculated as part of the Pre-Payroll processing routine or can be entered on the Payment Details window.

If a rate is entered into the Ordinary Pay Rate field and no Ordinary Pay Code is entered, the calculation of Ordinary Pay does not update this field.

The Hours Type Codes window allows users to specify the Pay Rate to be used when the Hours Code is paid to an employee.

The Pay Rate to Use field allows the selection of Base, Award, Other and Rates 4 to 8 to be used in the payment of this Hours Code.

The employee must have a value in the corresponding area in their records. If there is no corresponding record, the Base Pay Rate will be used.

The Default Calc Method field in the Hours Type Code window may be used to set a default method by which pay is calculated for this Hours Type Code.

Hierarchy
Default	Base Pay Rate
Hours Code	Pay Rate to Use field overrides Base Pay Rate
Hours Code	Default Calc Method field overrides Pay Rate to Use field and Base Pay Rate

 

 To use Average Rates to calculate employee pay rates, first setup the Average Rate Rules to be applied with the specific Average Rate Code.

The Calculate Average Rates process must be run as part of the pre payroll processing cycle to enable average rates to be maintained as current.

To use average rates to pay hours a Calculation Method must be setup for the appropriate classification of hours. The calculation method dictates the Average Rate code to use.

This calculation method is attached to an Hours Type Code or to an employee, the hierarchy depends on the record it is attached to.

Hierarchy
Default	Base Pay Rate
Hours Code	Pay Rate to Use field overrides Base Pay Rate
Hours Code	Default Calc Method (setup for Average Rates) field overrides Pay Rate to Use field and Base Pay Rate
Average Rate at Employee Level	This overrides all previous levels

 

Where Ordinary Pay is to be used, the applicable Ordinary Pay Code is assigned to the employee. A Linked Earnings record is used to define the hours and allowances which are to be used on the calculation of Ordinary Pay.

The Calculate Ordinary Pay process must be run as part of the pre payroll processing cycle to ensure that Ordinary Pay rates are kept current. This process updates the employee's record with the current ordinary pay rate.

To use Ordinary Pay rates to pay hours, a Calculation Method is set up for the appropriate classification of hours. This calculation method dictates the pay rate to be used for the payment of hours by classification.

This calculation method may then be attached to an Hours Type Code or to an employee dependent on the hierarchy on the record attached.

Hierarchy
Default	Base Pay Rate
Hours Code	Pay Rate to Use field overrides Base Pay Rate
Hours Code	Default Calc Method (set up for Ordinary Pay) field overrides Pay Rate to Use field and Base Pay Rate
Ordinary pay at Employee Level	Overrides all the previous levels

 

Calculation Methods can be attached to either an Hours Type Code or directly linked to an employee's record in the Payment Details window.

When set at an employee level, the specified method of payment included in the calculation method is used for the payment of hours relating to the Calculation method.

Hierarchy
Default	Base Pay Rate
Hours Code	Pay Rate to Use field overrides Base Pay Rate
Hours Code	Default Calculation Method field overrides Pay Rate to Use field and Base Pay Rate
Calculation Method at Employee Level	If set up, override any Hours Code Rates

 

When a rate is entered into the Rate field in the Time Entry window, this rate is used for the payment of the hours.

Hierarchy
Default	Base Pay Rate
Hours Code	Pay Rate to Use field overrides Base Pay Rate
Hours Code	Default Calc Method field overrides Pay Rate to Use field and Base Pay Rate
Calculation Method at Employee Level	If set up, will override any Hours Code Rates
Override Pay Rate	If entered during Time Entry, will override all previously allocated rates

 

When an override Calculation Method is used in the Time Entry window, the entered calculation method is used for the payment of the hours.

Hierarchy
Default	Base Pay Rate
Hours Code	Pay Rate to Use field overrides Base Pay Rate
Hours Code	Default Calc Method field overrides Pay Rate to Use field and Base Pay Rate
Calculation Method at Employee Level	If setup these override any Hours Code Rates
Override Calculation Methods	If entered during Time Entry, this overrides all previously allocated rates.

When both an override Calculation Method and an override Rate are used in the same record in Time Entry, the entered Rate is ignored and the entered Calculation Method is used for payment of the hours.

The main purpose of Salary Codes is to give the ability of maintaining multiple rates for multiple employees, without having to maintain each separately. When a Salary Code is applied to employees, the pay rate hierarchies still applies except for Time Entry overrides. When an override Salary Code is used in Time Entry window, the entered salary code is used for the payment of hours.

Hierarchy
Default	Base Pay Rate
Hours Code	Pay Rate to Use field overrides Base Pay Rate
Hours Code	Default Calc Method field overrides Pay Rate to Use field and Base Pay Rate
Calculation Method at Employee Level	If setup these override any Hours Code Rates
Override Salary Code	If entered during Time Entry, this overrides all previously allocated rates. Example:- If the Hours Code being overridden has Pay Rate to Use field set to use the Award Rate, the Award Rate on the Salary Code would be used. If there is no Award Rate attached to the Salary Code, the Base Pay Rate attached to the Salary Code is used.

 

When both an override Calculation Method and an override Salary Code are used in the same record in Time Entry, the entered Salary Code is ignored and the entered Calculation Method is used for payment of the hours.