Pay rates calculation

The calculation type that you select on the pay code determines how Payroll calculates the associated pay:

See Defaults and overrides.

Normal Rate—The rate on the time record (using pay rate defaulting logic) is used to calculate earnings.

• Hourly: Hours * Rate = Gross Pay

  • Salaried: Annual Salary / the number of Pay Periods (as defined by the employee's Pay Frequency) = Gross Pay.

Percentage Rate—A percentage is entered in the Rate field, the Premium field, or both on the pay code.

• Hourly: Rate * Percentage * Hours = Gross Pay

  • Salaried: Annual Salary / (Annual Hours * FTE) = Hourly Rate

    Hourly Rate * Percentage * Hours = Gross Pay

Rate Shift Differential—Payroll uses the shift on the employee record, which can be overridden on the time record, and the shifts or shift table on the pay code to calculate the shift differential.

• Hourly: (Rate + Shift Differential) * Hours = Gross Pay

  • Salaried: Annual Salary / (Annual Hours * FTE) = Hourly Rate

    (Hourly Rate + Shift Differential) * Hours = Gross Pay

Percent Shift Differential—Payroll uses the shift on the employee record, which can be overridden on the time record, and the shifts or shift table on the pay code to calculate the shift differential.

• Hourly: [Rate + (Rate * Shift Diff)] * Hours = Gross Pay

  • Salaried: Annual Salary /(Annual Hours * FTE) = Hourly Rate

    [Hourly Rate + (Hourly Rate * Shift Diff)] * Hours = Gross Pay

Percentage with Rate Shift Differential—Combines the calculation types Percentage Rate and Rate Shift Differential. Payroll uses the shift on the employee record, which can be overridden on the time record, and the shifts or shift table on the pay code to calculate the shift differential.

• Hourly: (Rate + Shift Differential) * Percentage = New Rate

  New Rate * Hours = Gross Pay

  • Salaried: Annual Salary / (Annual Hours * FTE) = Hourly Rate

    (Hourly Rate + Shift Differential) * Percentage = New Rate

    New Rate * Hours = Gross Pay

Percentage with Percentage Shift Differential—Combines the calculation types Percentage Rate and Percent Shift Differential. Payroll uses the shift on the employee record, which can be overridden on the time record, and the shifts or shift table on the pay code to calculate the shift differential.

• Hourly: [Rate + (Rate * Shift Diff)] * Percentage = New Rate

  New Rate * Hours = Gross Pay

  • Salaried: Annual Salary / (Annual Hours * FTE) = Hourly Rate

    [Hourly Rate + (Hourly Rate * Shift Diff)] * Percentage = New Rate

    New Rate * Hours = Gross Pay

Additional Flat Rate—An additional flat rate is entered on the pay code, the employee record, or the time record to be paid to the employee. Payroll ignores any hours entered on the time record.

Noncash Income—Payment-in-kind, such as automobile allowance, moving expenses, or excess group term life. The amount of a non-cash pay code is added to gross wages and taxable wages, and is subtracted out before Payroll calculates Net Pay.

Hours Only—Payroll uses this calculation type to track only the hours associated with an event, such as eligible hours for benefit purposes or to track leaves of absence.

Custom Calculation—You can establish a unique calculation logic to associate with this calculation type.