Summary

Whenever a Rate is used PayGlobal checks the fields on the Factor Calc tab to assess whether additional calculations are included in the method used for the calculation of a rate.

Fields

Factor Calculation:

The use of Factor calculation field is optional.

In a typical database the only rate codes that would use a Factor Calculation are the following:

• Daily Rate.
• Weekly Rate.

A factor calculation of 'D. Avg Profiled Hours per Day' is generally applied to a Daily Rate and a factor calculation of 'E. Avg Profiled Hours per Week' is generally applied to a Weekly Rate.

For more information on the types of calculations available to the factor field see Rates - Factor Calc - Factor Calculations

Factor:

This field is only available when Factor Calculation for a rate is:

• A. Fixed Amount of.

  -or-

• B. % of Profiled Hours where Total is.

Extra functionality is achieved by manipulation of the Factor field when a rate is used in a rate rule. PayGlobal multiplies the selected 'Rate calculation' by the value in this field (as a fixed amount or % depending on the factor calculation chosen). The result is used as the rate value.

For example, the annual leave for employees in an organisation accrues in days, but is paid in hours. To make PayGlobal pick up the average holiday rate based on hours, not days, when paying out annual leave, use User-Defined Fields in the rate rule. This is most relevant to New Zealand leave payout.

Employee field to factor:

This field facilitates the calculation of rates based on employee fields, when those rates are not already used in hard coded calculation methods. A hard coded method might be 'Daily' or 'Weekly'.

The Factor Calculation for this type of rate must be 'C. Amount of Employee Field'.

Rates are calculated based on data held on the employee master file record.

Factor operator:

This field is used to apply the factor to the rate. For example, if you wanted to increase the rate by 20% then you would enter Factor = '1.2' and Factor operator = 'Multiply'.

Over-Award Rate:

Use the Over-Award Rate in the rate code to form consolidated hourly rates based on the base rate and an over-award component.

Specify a rate code in this field to be used as Over-Award Hourly Rate components. This means that when a default rate code is attached to an employee, and the Over-Award Rate code is specified in the Employee Rate Overrides area, the two rate values will be summed to create a default rate amount.

Pointer:

This field is used when the Export type field is "TA" or "TM" on the Modify Company Settings | Rostering/T&A | Export to Payroll tab. If you define a pointer, this can point to another rate when you export the actuals to payroll, so you can have one Rate Code in Time & Attendance and export to another Rate Code in payroll.

Over-Award Rate example

Scenario:

Employees are attached to an award code with the following rate codes:

• Grade 1 - $10.00
• Grade 2 = $12.50
• Grade 3 = $15.00

Problem:

A new employee is hired on Grade 1. That employee has negotiated an additional $1.00 per hour. The following considerations must be taken into account:

• The employer needs to ensure that when the award is updated in the future, only the base rate of $10.00 is increased, and the $1.00 remains static.
• The Pay Office want to avoid setting up an additional rate code against the award, especially as there may be several small variations like this within an organisation.
• The Pay Office want to avoid adding a Grade 1 override rate against the employee themselves as this could make it tricky later on when performing a global update.

Solution:

1. Set up a rate called "Over- Award Rate" or similar.
2. Attach this rate to the Over-Award Rate field.
3. In the employee record, attach the "Over-Award Rate" to the Rate Overrides section to specify the over-award value.
4. Click Save. The two rates will consolidate into one total value.