Summary

Use a Default Hourly Rate when an employee has some type of default Period Rate.

For example, the Pay Period for salaried employees can be weekly, fortnightly, bi-monthly or monthly.

Use Default Hourly Rates to calculate hourly unit payments, such as annual leave.

PayGlobal derives the Default Hourly Rate from the Rate calculation field set in the Rate Calc tab page of the Rate record.

To derive the hourly rate manually, you must convert the employee’s Default Rate for a given Pay Period to a weekly amount, and then divide this figure by the Profiled hours per week.

Weekly Default Rate amount / Profiled hours

Typical Settings

For a typical Default Hourly Rate the settings are as follows:

• Rate Code = V
• Description = Hourly Rate
• Rate Calculation = D. Standard Default Hourly Rate
• Factor Calculation = left blank

Example

The following table shows calculations for an employee with 40 Profiled hours and an annual salary of $72,000.