Personality provides for the ability to compute an hourly rate for salaried employees so that when hours are entered into the system from any of the various sources, the rate of pay is computed in such a way that the proper wages are generated.
In releases prior to 30502, generating hours and dollars for salaried employees required that the dollars be generated separate from the earnings since they did not necessarily balance with each other. It is not recommended that Personality be configured to pay salaried employees by generating earnings from the hours keyed, accomplished by varying the wage rate.
Since earnings are generated from the hours which are generated daily, it is likely that generated earnings will be off by pennies from the employee semi-monthly or monthly wage. This is handled by ‘Force Balance’ logic, invoked when the transactions are brought into payroll (UPTR).
In most situations only salary would be required at a variable rate. For those clients using Cell Points pay line premiums, there may be a need to compute these premiums at a variable rate of pay based on the number of hours worked in the monthly or semi-monthly pay period. The setup requirement for these premiums is described at the end of this document.
There is also a new Pay Line Based premium that can be used in place of the UPTG Period $$$ premium. The problem with the UPTG premium is that it creates ‘Dollars Only’ into the IPTR screen, which means that the premium dollars from the hours worked in the period are not naturally generated into payroll. If not generated from hours, the UPRETRO would not be able to create the retro in the past. The correct way to handle a Pay Period premium is to use this new type. It will be generated from the hours worked (which may vary), and the dollars assigned to each hour will be computed by Personality correctly so that the total will equal the Period Premium amount. To account for any penny difference, the premium is force balanced when the transaction is brought into payroll during the execution of UPTR.
For Variable Rate Hours, the number of work days in the pay period is determined from the employee work calendar. Since these are salaried employees, these work days are full days using ‘Standard Hours Per Day’. These hours are obtained from the work calendar if present.
For Variable Rate (Elem), the number of hours worked in a pay period is determined by an element. Generally, the variable rate is calculated by dividing the semi-monthly wage by the number of hours in the period (totaled for the pay period by adding all the pay components in the element).
If the Salary Rate Method pay component is ‘Variable Rate (Shifts/MO), then the hourly rate is calculated by first calculating a daily rate, dividing the wage per month by the number of scheduled shifts. The daily rate is then divided by the ‘Hours per Day’ in the employee assignment record.
The employees will have their salary calculated based on time, not the current method of generating a SM/MO salary amount in UPTG. Using this method, UPTG will support pay period employee changes such as new hires, terminations, salary changes and leaves.
SM/MO clients will be able to use the retro program.
Please note that from the time the client changes the set up from ‘generating salary’ to ‘generating hours ONLY’,the previous pay lines are salary based and Retro will not function properly.Since the time will be generated by day and each day will have an associated dollar amount, the standard FLSA calculations will be supported.
Employees must be “salaried” paid which means the pay type for the employee’s group must be set to ‘Salary’. Pay period earnings are force balanced during UPTR to compensate for any earnings variance caused by earnings generation on a daily basis daily.
The Variable Rate method will be invoked ONLY for monthly and semi-monthly paid employees.
This method handles changes of work schedule in the middle of a pay period by computing the variable rate for the entire period. This ensures that the variable rate is the same for each work day within the pay period.
If however, if the employee is scheduled in Time Management, then the number of scheduled shifts is the number of days worked. In this method, the number of shifts scheduled in the month determines the daily rate, and the hourly rate will be this daily rate divided by standard hours worked.
When adding up scheduled shifts, only the time entry types ‘Normal Work Time’, ‘In Early’ and ‘In Late’ will be considered scheduled.
If no records are located in time entries, then the work calendar is used.
The hourly rate is always calculated by taking the monthly pay rate and dividing it by the number of scheduled hours in the pay period.
Example:
22 days at 8 hours per day = 176 hours in the period
A monthly salary of 3,000 would provide an hourly rate of $17.05 in the month.
When the employee is hired, terminated, or has a mid-period rate change, the month wage is computed by taking the daily rate and extending it by standard hours.
Example:
Employee is paid 3,000/month and gets an increase on March 14th to 3,500.
11 working days at (3,000/22) * 11 = $1500.00
11 working days at (3,500/22) * 11 = $1750.00
Monthly wages = 3,250.00
The computation of these hours will look at this pay header and any previously closed pay headers for this period.
Sample Pay Line Detail Audit Text
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The calculations used to derive the rate are stored for future reference in a USER FIELD ATTACHED TO THE PAY LINE DETAIL as shown below. This example is slightly misrepresenting since it indicates that the text is on the pay line. This was changed in November, 2008 to be recorded on the Pay Line details since it can vary at that level.
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The daily rate is always calculated by taking the monthly pay rate and dividing it by the number of days scheduled in a month. It is always a full month that is used even if the payroll frequency is semi-monthly.
Example:
22 Scheduled Shifts
Standard hours (From IEAS) = 8.5
Monthly Salary of $3,000
Hourly Rate $16.0428 = $3000 / 22 / 8.5
When the employee is hired, terminated, or has a mid-period rate change, this formula is NOT used and the system reverts to the ‘Variable Rate Hours’ method.
Example:
Month 01-Sep-2005 to 30-Sep-2005
Employee Hired on 18-Sep-2004
Range Begin 01-Sep-2005
Range End 30-Sep-2005
EE is TM Scheduled, Using 'Variable Rate (Shifts/Month) Method'
Number of Scheduled Shifts in Sep-2005 ==> 22
Monthly Rate ($5,000.00) / Number Shifts (22) / Std Hours (8) = Variable Rate($28.4091)
(1100) Time Basis ==> HR
(1100) Rate Source is Matching Assignment
(1100) Using Matching Assignment Code: 31 $50000/YR
(1100) Salary Rate Method: Variable Rate
(1100)
Work Calendar is '5-8'
Total Work Calendar Days ==> 23
Total Work Calendar Hours ==> 184
Period Earnings($4,166.67) / Sched Hours (184) = Variable Rate($22.6449)
(1100) Pay Line Detail Computed Wage: 22.6449/HR
01-Aug | $4,166.67 / 184 * 8 = $181.16 |
02-Aug | $4,166.67 / 184 * 8 = $181.16 |
03-Aug | $4,166.67 / 184 * 8 = $181.16 |
06-Aug | $4,166.67 / 184 * 8 = $181.16 |
07-Aug | $4,166.67 / 184 * 8 = $181.16 |
08-Aug | $4,166.67 / 184 * 8 = $181.16 |
09-Aug | $4,166.67 / 184 * 8 = $181.16 |
10-Aug | $4,166.67 / 184 * 8 = $181.16 |
13-Aug | $4,166.67 / 184 * 8 = $181.16 |
14-Aug | $4,166.67 / 184 * 8 = $181.16 |
15-Aug | $4,166.67 / 184 * 8 = $181.16 |
16-Aug | $4,166.67 / 184 * 8 = $181.16 |
17-Aug | $4,166.67 / 184 * 8 = $181.16 |
18-Aug | $4,166.67 / 184 * 8 = $181.16 |
19-Aug | $4,166.67 / 184 * 8 = $181.16 |
20-Aug | $4,166.67 / 184 * 8 = $181.16 |
23-Aug | $5,000.00 / 184 * 8 = $217.39 |
24-Aug | $5,000.00 / 184 * 8 = $217.39 |
25-Aug | $5,000.00 / 184 * 8 = $217.39 |
26-Aug | $5,000.00 / 184 * 8 = $217.39 |
27-Aug | $5,000.00 / 184 * 8 = $217.39 |
30-Aug | $5,000.00 / 184 * 8 = $217.39 |
31-Aug | $5,000.00 / 184 * 8 = $217.39 |
10-Aug | $4,166.67 / 128 * 8 = $181.16 |
13-Aug | $4,166.67 / 128 * 8 = $181.16 |
14-Aug | $4,166.67 / 128 * 8 = $181.16 |
15-Aug | $4,166.67 / 128 * 8 = $181.16 |
16-Aug | $4,166.67 / 128 * 8 = $181.16 |
17-Aug | $4,166.67 / 128 * 8 = $181.16 |
18-Aug | $4,166.67 / 128 * 8 = $181.16 |
19-Aug | $4,166.67 / 128 * 8 = $181.16 |
20-Aug | $4,166.67 / 128 * 8 = $181.16 |
23-Aug | $4,166.67 / 128 * 8 = $181.16 |
24-Aug | $4,166.67 / 128 * 8 = $181.16 |
25-Aug | $4,166.67 / 128 * 8 = $181.16 |
26-Aug | $4,166.67 / 128 * 8 = $181.16 |
27-Aug | $4,166.67 / 128 * 8 = $181.16 |
30-Aug | $4,166.67 / 128 * 8 = $181.16 |
31-Aug | $4,166.67 / 128 * 8 = $181.16 |
01-Aug | $4,166.67 / 104 * 8 = $181.16 |
02-Aug | $4,166.67 / 104 * 8 = $181.16 |
03-Aug | $4,166.67 / 104 * 8 = $181.16 |
06-Aug | $4,166.67 / 104 * 8 = $181.16 |
07-Aug | $4,166.67 / 104 * 8 = $181.16 |
08-Aug | $4,166.67 / 104 * 8 = $181.16 |
09-Aug | $4,166.67 / 104 * 8 = $181.16 |
10-Aug | $4,166.67 / 104 * 8 = $181.16 |
13-Aug | $4,166.67 / 104 * 8 = $181.16 |
14-Aug | $4,166.67 / 104 * 8 = $181.16 |
15-Aug | $4,166.67 / 104 * 8 = $181.16 |
16-Aug | $4,166.67 / 104 * 8 = $181.16 |
17-Aug | $4,166.67 / 104 * 8 = $181.16 |
Since earnings are generated from the hours worked multiplied by the variable rate on a daily basis, the generated earnings can be wrong due to the mathematics in rounding.
To deal with this issue, Personality will perform ‘Force Balancing’ for variable rate employees when the transactions are brought into payroll (UPTR). This balancing will occur after the last transaction for an employee has been loaded into IPPH.
Please note that all transactions for an employee must be in the same execution of UPTR for force balancing to be invoked. UPTR can not be executed more than once for employees using a variable rate.To be eligible for this force balance, the following conditions must be met:
The Force Balance pay component must point to an element containing the pay components that are part of regular earnings. These earnings should contain anything that is generated from UPTG and as well as anything that may be entered as exceptions in IPTR that would be considered part of the employee’s regular earnings.
These will be the earnings that are accumulated during force balance to determine if an adjustment due to rounding is required.
As a safeguard, the adjusting entry will be applied ONLY if the adjustment is within a reasonable variance. This check will ensure that salary is adjusted to a minimum and avoid incorrect adjustments when there may be setup problems.
The variance must be within 5%, unless the Force Balance pay component points to a user variable. This optional user variable would contain the override ‘Variance’. The example following illustrates how to provide an override variance percent.
Any computed Force Balance amount is recorded into a separate pay line in the current pay (IPPH).
Force Balancing can now be allowed when there is a Wage, Position, or Job change in a Period, and also when an employee has more than one assignment. The client must add User field (IMUF) 'VARIABLE RATE' to table P2K_CM_ENTITY_DETAILS. The conditions above will NOT prevent Force Balancing is the UDF contains the value '1'.The calculation method for this component must be ‘Entered Value’.
Note that all transactions making up part of the employee regular earnings are generated from the scheduled hours, and therefore will be handled perfectly by Retroactive Pay (UPRETRO). Any Force Balance earnings will NOT be taken into consideration during UPRETRO, since generation is simply set to ‘Entered Value’.Since the premium is generated from the hours worked multiplied by the variable rate on a daily basis, the generated premium can be wrong due to the mathematics in rounding.
To deal with this issue, Personality will perform force balancing for variable rate employees when the transactions are brought into payroll (UPTR). This balancing will occur after the last transaction for an employee has been loaded into IPPH.
Please note that all transactions for an employee must be in the same execution of UPTR for force balancing to be invoked. UPTR can not be executed more than once for employees using a variable rate.It is important to note that the only place that balancing occurs is when the IPTR batches are brought into payroll during the execution of UPTR.
Note that each different cell premium is a pay is balanced separately.To be eligible for this force balance, the following conditions must be met:
As a safeguard, the adjusting entry will be applied ONLY if the adjustment is within a reasonable variance. This check will ensure that premium is adjusted to a minimum and avoid incorrect adjustments when there may be ‘setup’ problems.
The variance must be within 5%, unless the ‘Cell Point Premium’ pay component points to a user variable. This optional user variable would contain the override variance. The following example illustrates how to provide an override variance percent.
Any computed Force Balance amount is recorded into a separate pay line in the current pay (IPPH). This pay line will have the same pay component as the Cell Point pay component.
The user variable will point to the variance percentage.
The Destination pay component must be the same pay component as the Cell Point Premium pay component (Pay Line).
Note that all transactions making up part of the employee regular earnings are generated from the scheduled hours, and therefore will be handled perfectly by Retroactive Pay (UPRETRO). Any Force Balance earnings will NOT be taken into consideration during UPRETRO, since generation is simply set to ‘Entered Value’.Since the premium generated from the hours worked are multiplied by the variable rate on a daily basis, the generated premium can be wrong due to the mathematics in rounding.
To deal with this issue, Personality will perform ‘Force Balancing’ when the transactions are brought into payroll (UPTR). This balancing will occur after the last transaction for an employee has been loaded into IPPH.
Please note that all transactions for an employee must be in the same execution of UPTR for force balancing to be invoked.It is important to note that the only place that balancing occurs is when the IPTR batches are brought into payroll during the execution of UPTR.
Note that each different Pay Period premium in a pay is balanced separately.To be eligible for this force balance, the following conditions must be met:
As a safeguard, the adjusting entry will be applied ONLY if the adjustment is within a reasonable variance. This check will ensure that premium is adjusted to a minimum and avoid incorrect adjustments when there may be ‘setup’ problems.
The variance must be within 5%, unless the Pay Period Premium pay component points to a user variable. This optional user variable would contain the override variance. The example following illustrates how to provide an override variance percent.
Any computed Force Balance amount is recorded into a separate pay line in the current pay (IPPH). This pay line will have the same pay component as the Pay Period Premium pay component.
The calculation method for this component must be ‘Entered Value’.
The user variable will point to the variance percentage.
The destination pay component must be the as the Pay Period Premium pay component.
Note that all transactions making up part of the employee regular earnings are generated from the scheduled hours, and therefore will be handled perfectly by retroactive pay (UPRETRO). Any Force Balance earnings will NOT be taken into consideration during UPRETRO, since generation is simply set to ‘Entered Value’.PERIOD PREMIUM: | Premium Rate = 101.56 |
PERIOD PREMIUM: | Hours in this Pay Period: 75 |
PERIOD PREMIUM: | Hours on this Transaction: 4 |
PERIOD PREMIUM: | Premium Amount per Pay Period = 46.87 |
PERIOD PREMIUM: | Premium Rate per Hour =.6249333333333 |
PERIOD PREMIUM: | Premium on this Transaction: 2.5 |
Screen captures are meant to be indicative of the concept being presented and may not reflect the current screen design.
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