Description

Use this page to assign calculations to pay elements. Access to the fields on the screen is disabled unless a workgroup has been selected on the search form at the top of the screen.

Contents

Usage

Calculations

Attaching Calculations To a Pay Element

Usage

Calculations are a very important part of the system. They are the mechanism by which the calculation engine can apportion pay and deduction amounts in part pay periods and how annual and period amount conversions occur. It is important to set up these calculations correctly; otherwise employees will be paid incorrectly. The workgroup calculations screen allows you to attach a series of calculations to each pay element in the system. This means that it is possible to have pay elements that are apportioned in different ways to each other for various purposes.

Upon the creation of a new pay element or a new workgroup the pay element(s) will have a default set of calculations applied.

Calculations

The following calculations can be used to calculate pay. Users cannot set up new calculations and if different calculations to this are required then a request should be made to the InPay support team. Calculations are based around either Working days or Calendar days which have the following definition:

Working Days: The number of working days in a period calculated from the work schedule.
Calendar Days: The number of calendar days in a period.

The following 5 calculation methods are available

Calendar Days: PeriodAmount / CalendarDaysInMonth * CalendarDays.
Working Days: PeriodAmount / WorkingDaysInMonth * WorkingDays.
260 Working Days: AnnualAmount / 260 * WorkingDays.
261 Working Days: AnnualAmount / 261 * WorkingDays.
365 Calendar Days: AnnualAmount / 365 * CalendarDays.

Note: the above 260/261/365 divisors are based on a 5 day working week. If a worker works less than 5 days per week then these will need to be adjusted.

e.g. A worker on a 260 Working Days calculation on a three day working week will have the following calculation

AnnualAmount / (260 * 0.6) * WorkingDays. As the worker only works three days a week the annual amount will need to be divided by 3/5s of 260.

Attaching Calculations To a Pay Element

Press new if you have previously selected a pay element from the calculations grid. Select the pay element that you want to attach a calculation from the pay element drop down list. Select the calculations from the drop down lists.

Pay Element: The pay element to set the calculations against.
Period calc: This is usually Annual / 12 and is a period conversion.
Annual calc: This is usually Period * 12 and is an annual conversion.
Starter calc: This is used to determine the apportionment calculation used when a pay element is first set up and the employee is a starter.
Daily calc: This is the normal apportionment calculation.
Leaver calc: This is used to determine the apportionment calculation used when a pay element is stopped and the employee is a leaver.
Apply to all elements: Tick this box if you would like to apply this set of calculations to all elements.

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