Summary
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One of the key attributes of a payroll transaction is the "Quantity" field.
The "Quantity" denotes how many units of a given Allowance/Deduction will be added/deducted from the employees pay.
In New Zealand most payments representing time worked are paid in hours. But Annual Leave is supposed to be transacted in weeks and F.B.A.P.S leave is supposed to be transacted in Days. Then of course you have items that don't represent a measure of time at all, e.g. Bonuses, Commissions, Superannuation, Meal/Tools/Uniform etc allowances. When you look at the "Quantity" field of a payroll transaction without knowing the above or having sufficient PayGlobal knowledge to understand how a given customer's database has been configured to fit their business needs then it can be difficult to quantify what is what.
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Leave to Hours conversions
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PayGlobal handles the conversion of leave from a non-hourly value to an hourly value so that you can so that you can do things like: :
- Determine the continent of the Total Hours column commonly used in Transaction View
- Validate the Ordinary time and Overtime paid hours in the QES Data Extract
- Assist in extracting data requested by the Labour Inspectors in respect to record keeping compliance obligations:
- Section 130 of the Employment Relations Act 2000.
- Section 81 of the Holidays Act 2003
For Leave conversions, the calculation uses the following fields from the settings from the employee's respective leave tables:
- Type of Units
- Calculation of qualifying units
- Use reduce by
Type of Units is Hours
If Type of units is Hours, then no conversion takes place. PayGlobal simply retrieves an amount based on the setting applied to the Use reduce by field, i.e. either:
Type of Units is Days
If Type of units is Days, then the conversion applied is defined by the settings applied to the Calculation of qualifying units and Use Reduce by fields.
Some key points for system configuration:
- You should not have Calculation of qualifying units set to E. Use quantity with Use Reduce by set to Yes, because this will just give you a "Days" value, no conversion.
- You could have Calculation of qualifying units set to E. Use quantity with Use Reduce by set to No, but only if the transaction's Rate Amount is representative of an hourly rate calculation.
- The Calculation of qualifying units options "C. Profiled Hours" and "D.Average Profiled Hours" both use an averaging calculations.
- "C. Profiled Hours" looks at each individual day the employee was on leave for in relation to their profiled hours, counts the total hours and non-zero hour days from the leave start date to the leave end date using the employee's profiled hours. The sum of the hours away is divided by the sum of the days away.
- "D. Average Profiled Hours" ignores the leave start/end dates and simply takes the employee's total profiled hours divided by total non-zero days
- The Calculation of qualifying units options A. Greater of profiled or average hours and B. Lesser of profiled or average hours are designed for Australia, so should be used in a New Zealand setup.
Type of Units in Weeks
Annual Leave
Annual leave in Weeks has only been designed to support paying in hours and maintaining leave balances in weeks. Therefore the only meaningful setup is to have:
- Calculation of qualifying units set to E. Use quantity
- Use Reduce by set to No
Long Service Leave
Some key points for system configuration:
- You should not have Calculation of qualifying units set to E. Use quantity with Use Reduce by set to Yes, because this will just give you a "Weeks" value, no conversion.
- You could have Calculation of qualifying units set to E. Use quantity with Use Reduce by set to No, but only if the transaction's Rate Amount is representative of an weekly rate calculation.
- The Calculation of qualifying units options "A. Greater of profiled or average hours", "B. Lesser of profiled or average hours", "C. Profiled Hours" and "D.Average Profiled Hours" all function as described for Type of Units is Days.
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