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Deduction Calc Method - B. Deduction breaks

Organisation | Entitlements | Deductions | Details (iii) tab | Calculation method

Summary

The Rate used in this method is determined by the value specified in the Deductions | Breaks tab | Using field:

  • D. Days worked
  • G. Gross Earnings
  • Q. Qualifying hours
  • S. Standard Earnings.

Calculation

PayGlobal uses the following steps to calculate the transaction total:

  1. Obtain the Quantity from the transaction.
  2. Derive the Rate value from one of the following sources:
    • Qualifying Hours

      The Rate value is the sum of Quantities of all Hour type Allowances in the current pay that have Include in Annual Leave set at 'Yes'.

    • Days Worked

      The Rate value is the number of days worked within the current pay period being processed.

    • Gross Earnings For deduction type 'U - Superannuation Deduction'

      The Rate value = Super Gross for the period - Exclude first amount

    • For all other deduction types ( 'D - Standard Deduction' or 'I - Insurance Deduction')

      Rate value = Total Gross for the Period - Exclude first amount

    • Standard Earnings for Waged employees

      Rate value = Total profiled hours * Rate amount (as defined in the employee's rates).

    • Standard Earnings for Salaried employees

      Rate value = Rate amount (as defined in the employee's rates).

  3. Derive the Rate using the Deduction Breaks defined in the Deduction.
  4. If the Rate value is between any of the 'From' and 'To' ranges, this will define the Rate 'Amt' that will be used.
  5. Derive the Transaction total for this transaction being processed using:

    Transaction total = Quantity * Rate / 100

  6. Obtain the value of Maximum amount as set in the Deductions | Details (i) tab.
  7. The transaction total used is:

    The lesser of Transaction total and Maximum amount

Is the Transaction total more than the Nett Pay?

Calculate the Nett Pay using:

Nett Pay = Min nett pay / 100

If the Transaction total is MORE than the Nett Pay, the setting of the Full amount only field in the Details (ii) tab page of the Deduction takes effect.

  • Yes

    Transaction total is '0'. The full amount is only deducted if the Transaction total can be paid.

  • No

    The Transaction total is recalculated using:

    Nett Pay = Nett pay * (Min nett pay / 100)

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