Summary

This topic explains the rate calculations available in PayGlobal.

Rate calculation descriptions that contain (H2003) refer to the New Zealand Holidays Act 2003. Some of these rate calculations use the same calculation method, but they were set up this way to easily identify the type of calculation being used.

Definitions

"Sum of last X weeks ... UDA", refers to the UDA breakdown records created for pay sequences closed in the last X calendar weeks from today's date.

For example, you need to work out P. Ordinary Hourly 4 Week Rule (H2003calc).

If today is 30/06/2009 and you run a weekly payroll, then PayGlobal will sum the Ordinary Pay 4 UDA and Ordinary Pay 4 (hours) UDA breakdown records created between 01/06/2009 and 30/06/2009. If any pay sequences in this date range have not been closed, then PayGlobal will not be able to generate an accurate value.

A. Override Rate

This rate calculation is always included in PayGlobal.

Use for rate overrides — typically Rate 0.

B. Rate Group Summation

Sums a number of rate values from multiple sources.

C. Rate Rule Evaluation

Compares two rates and then pays the applicable rate value set by the rate rule.

D. Standard Default Hourly Rate

Uses employee's Default Hourly Rate.

E. Accrual Rate

New Zealand databases only.

Note: This rate calculation is redundant under the NZ Holidays Act 2003.

Gross earnings accrued ($) / Total accrued Units

If this rate calculation is used in a database for any other country, then the resulting rate amount is zero.

F. Last Years AL/LC Rate

New Zealand databases only.

Note: This rate calculation is redundant under the NZ Holidays Act 2003. However, some companies still use it to make a three-way comparison when they pay holiday pay (Holidays Act 1981 rate versus Holidays Act 2003 rate versus base rate).

PayGlobal calculates the rate based on last year's annual leave rate.

• Calculations prior to 01/04/2004 are based on the employee’s outstanding annual leave rate. Refer to the Employees Annual Leave O/s tab page.
• Calculations from 01/04/2004 (provided the field New rate calculation applied from is populated):
  • If leave is calculated in hours, then the Rate calculation =
    Q. Average Hourly Earnings (H2003calc).
  • If leave is calculated in days, then the Rate calculation =
    V. Average Daily Earnings (H2003calc)

G. Last Years AL Average Hourly Rate

New Zealand databases only.

PayGlobal gets this rate from the Last year average hourly rate field on the employee's annual leave O/s tab page.

If this rate calculation is used in a database for any other country, then the resulting rate amount is zero.

H. Last Years AL Average Daily Rate

New Zealand databases only.

PayGlobal gets this rate from the Last year average daily rate field on the employee's annual leave O/s tab page.

If this rate calculation is used in a database for any other country, then the resulting rate amount is zero.

I. Last Years AL Average Weekly Rate

New Zealand databases only.

PayGlobal gets this rate from the Last year average weekly rate field on the employee's annual leave O/s tab page.

If this rate calculation is used in a database for any other country, then the resulting rate amount is zero.

J. Current AL Average Hourly Rate

AL Gross qualifying ($) / AL Total hours paid

K. Current AL Average Daily Rate

AL Gross qualifying ($) / AL Total days paid

L. Current AL Average Weekly Rate

AL Gross qualifying ($) / AL Total weeks paid

M. Current Remuneration package hourly Rate

Used with remuneration packaging in the PayGlobal Human Resources module.

N. Amount of Employee Field

The value specified in the Employee field to rate field in the Rates entity.

For example, if Employee field to rate = 'Salary', then the value is the amount in the employee's Annualised salary field.

O. Ordinary Hourly Pay (H2003calc)

New Zealand databases only.

Intended for assisting with compliance of Annual Leave payments where an employee does not receive payments as described by section 8 (1) (b) of the Holidays Act 2003.

Formula:

Standard Default rate / Profiled hours per pay period.

P. Ordinary Hourly 4 Week Rule (H2003calc)

New Zealand databases only.

Intended for assisting with compliance of Annual leave payments in respect of section 8 (2) of the Holidays Act 2003.

Formula:

Sum of the last 4 weeks Ordinary Pay 4 UDA / Sum of the last 4 weeks Ordinary Pay 4 (hours) UDA

This formula complies with the Department of Labour's Holiday Pay specification 2004

PW. Ordinary Weekly 4 Week Rule (H2003calc)

New Zealand databases only. Available from v4.36.0.0 onwards.

Intended for assisting with compliance of Annual Leave payments as per:

• Sections 21 and 22 the NZ Holidays Act 2003
• MBIE's Holidays Act 2003 Guidance document from 31 January 2018.

Formula:

Gross earnings in previous 4 weeks pay periods / 4

Where:

• Gross earnings is controlled via the allowances specified in the allowance group used by your organisation to define Ordinary Weekly Pay
• Previous 4 weeks pay periods means identifying the date range from which to sum Ordinary Weekly Pay earnings.

For example if an employee took leave on 17/08/2018 and the related pay period was 13/8/2018 to 19/08/2018, then the period before (assuming it is closed) would have an end date of 12/08/2018. Therefore the " previous 4 weeks" period would be 16/07/2018 (inclusive) to 12/08/2018 (inclusive).

Q. Average Hourly Earnings (H2003calc)

New Zealand databases only.

Sum of the last 52 weeks Average Earnings 52 UDA / Sum of the last 52 weeks Average Earnings 52 (hours) UDA

This formula complies with the Department of Labour's Holiday Pay specification 2004

QW. Average Weekly Earnings (H2003calc)

New Zealand databases only. Available from v4.36.0.0 onwards.

Intended for assisting with compliance of Annual Leave payments as per:

• Sections 21 and 22 the NZ Holidays Act 2003
• Section 42 of the Parental Leave and Employment Protection Act 1987.
• MBIE's Holidays Act 2003 Guidance document from 1 January 2018.

Formula:

Gross earnings in previous 12 months pay periods / 52

Note: This weekly rate can be converted to an hourly or daily rate using an appropriate Factor Calculation. To take the weekly rate and divide it by the employee's definition of week, it is recommended to use Factor calculations M. Agreed Hours per Week or N. Agreed Days per Week

Where:

• Gross earnings is controlled via the allowances specified in the allowance group used by your organisation to define Average Weekly Earnings
• Previous 12 months pay periods means identifying the date range from which to sum Average Weekly Earnings.

For example if an employee took leave on 17/08/2018 and the related pay period was 13/8/2018 to 19/08/2018, then the period before (assuming it is closed) would have an end date of 12/08/2018. Therefore the " previous 12 month" period would be 12/08/2017 (exclusive) to 12/08/2018 (inclusive).

Exceptions:

• For employee's who are in their first 12 months of employment. The divisor is the count of weeks they have been employed prior to taking leave.
• Leap years only last 52 weeks pays are included.
• Divisor caters for LWOP adjustments.

R. Relevant Hourly Pay (H2003calc)

New Zealand databases only.

The standard default hourly rate.

Default rate / Profiled hours per pay period.

S. Relevant Hourly Pay 4 Week Rule (H2003calc)

New Zealand databases only.

Important: Changes to the Holidays Act 2003 that came into effect on 01/04/2011 mean that you can no longer use this rate calculation. It was replaced by "8. Average Hourly Pay 52 weeks (H2010calc)".

Sum of the last 4 weeks Average Daily Pay UDA (formerly Relevant Daily Pay) / Sum of the last 4 weeks Average Daily Pay (hours) UDA (formerly Relevant Daily Pay (hours))

T. Ordinary Daily Pay (H2003calc)

New Zealand databases only.

Standard default hourly rate * average profiled hours per day

U. Ordinary Daily Pay 4 Week Rule (H2003calc)

New Zealand databases only.

Sum of the last 4 weeks Ordinary Pay 4 UDA / Sum of the last 4 weeks Ordinary Pay 4 (days) UDA

V. Average Daily Earnings (H2003calc)

New Zealand databases only.

Sum of the last 52 weeks Average Earnings 52 UDA / Sum of the last 52 weeks Average Earnings 52 (days) UDA

W. Relevant Daily Pay (H2003calc)

New Zealand databases only.

Standard default hourly rate * average profiled hours per day

X. Relevant Daily Pay 4 Week Rule (H2003calc)

New Zealand databases only.

Important: Changes to the Holidays Act 2003 that came into effect on 01/04/2011 mean that you can no longer use this rate calculation. It was replaced by "7. Average Daily Pay 52 weeks (H2010calc)".

Sum of the last 4 weeks Average Daily Pay UDA (formerly Relevant Daily Pay) / Sum of the last 4 weeks Average Daily Pay (days) UDA (formerly Relevant Daily Pay (days))

6. Current Total Remuneration package hourly Rate

This rate calculation does the following:

1. Locates the employee's current Employee Package (Current Package = 'Yes').
2. Subtracts Bonuses and Share Issues totals from the Total remuneration value.
3. Divides the result from Step 2 by 52 to derive a weekly value.
4. Divides the result from Step 3 by the employee's hours in the week (based on their profiled hours) to derive an hourly value.

   Note: If the employee does not have profiled hours, then the rate will be zero.

7. Average Daily Pay 52 weeks (H2010calc)

New Zealand databases only. Replaced "X. Relevant Daily Pay 4 Week Rule (H2003calc)" from 01/04/2011.

Sum of the last 52 weeks Average Daily Pay UDA / Sum of the last 52 weeks Average Daily Pay (days) UDA

8. Average Hourly Pay 52 weeks (H2010calc)

New Zealand databases only. Replaced "S. Relevant Hourly Pay 4 Week Rule (H2003calc)" from 01/04/2011.

Sum of the last 52 weeks Average Daily Pay UDA / Sum of the last 52 weeks Average Daily Pay (hours) UDA

MC. Remuneration Package Component

This rate calculation uses the benefit value of the remuneration package Component Code specified on the rate.

If requested the result can be obtained from the FBT value and can be a period value.

MS. Remuneration Package Share Issue

This rate calculation uses the benefit value of the remuneration package Share Issue Code specified on the rate.

If requested the result can be obtained from the FBT value and can be a period value.

MV. Remuneration Package Vehicle

This rate calculation uses the benefit value of the remuneration package Vehicle Code specified on the rate.

If requested the result can be obtained from the FBT value and can be a period value.