Salary

This is where Salaries are configured per employee.

Creating Salary is one of the mandatory steps when hiring new employees.

Prerequisites

  • Program Control option PAYRF Position 15 (determines permission to override additional rates from Salary Codes; Only applicable when a Salary Code is selected.)

Rules and Guidelines

  • An Hourly Rate of Pay is used to calculate all employee's pay. This rate is calculated using the Salary, Base Hours, and Pay Frequency information on the file.

    Code Calculations for Hourly Rate Notes:
    H

    Hourly --> No Calculation Hourly Rate = Hourly Rate
    • The result of the calculation of Base Hours x 4.3333 is two decimal places (adjusted).
    • The Hourly Rate calculated has the form $$$ccc and is used with the four decimal places in all calculations.
    • Equivalent values are displayed on the window.
    D

    Daily --> (Salary x 5)/Base Hours = Hourly Rate
    W

    Weekly --> Salary/Base Hours = Hourly Rate
    F

    Fortnightly --> Salary/(Base Hours x 2) = Hourly Rate
    4

    4 Weekly --> Salary/(Base Hours x 4) = Hourly Rate
    M

    Monthly --> Salary/(Base Hours x 4.3333) = Hourly Rate
    A

    Annual Paid Monthly --> Salary/12 x (Base Hours x 4.3333) = Hourly Rate
    A

    Annual Paid Weekly, Fortnightly or 4 Weekly --> Salary/(Base Hours x 52) = Hourly Rate

     

  • If the employee has a Salary Package in the Remuneration Module, a warning will be displayed to advise that the record is part of a Salary Package. If you want to make any adjustments, kindly to go to the Salary Package screen.
  • When an employee is hired, an Effective Dated Salary record will be created with From date = 'Hire Date' and To Date = '31/12/9999'.

  • Various Pay Rates can be attached to an employee's records. The Salary window shows the result of a Pay Rate Change once an employee is selected.

  • Every time a new effective dated record is created on the Salary main screen for an employee and a Salary Code is used, the button Salary Code Records is enabled. This allows you to view the effective dated records for the Salary Code assigned to the employee on the Salary record being looked at.

  • If an employee is attached to a Salary Code, and the Salary Code effective dated record expires during or before the Pay Period, the employee will be only paid for the portion of the Salary Code that was effective on or not paid at all, and a warning will be generated during payrun calculations.

Field Information

Select or search for the Salary Code.

The prompt list only includes Salary Codes effective as at the From Date in the date picker. Archived Salary Codes, regardless of its effective period, are excluded from the list.

If a Salary Code is specified, the Base Rate and Rate Frequency are no longer editable.

This is visible when a Salary Code is selected. This displays the Short Description for the selected Salary Code.

This is visible when a Salary Code is selected. This displays the Long Description for the selected Salary Code.

This field is used to hold the employee's annual salary for superannuation purposes and can be different from the actual gross earnings. This is useful for superannuation schemes that set the salary once per year.

It is only used if the following Allow/Deduct Classifications are allocated:

Code Description
Q Non Contributory Superannuation as a Percentage of Employee's Annual Superannuation Gross
R Employee Contributory Superannuation as a Percentage of Employee's Annual Superannuation Gross
W Salary Sacrifice % of ASG

This is hidden when reviewing a role salary record.

This is a minimum net amount that the employee is to be paid for each payrun, if specified. The actual net pay is checked against the Protected Net amount when deductions are applied to the employee's pay during Payrun processing.

Prioritised Deductions are applied only if they will not reduce the actual net pay to below the minimum specified here. However, mandatory deductions are applied regardless of their effect on the actual net pay, and they could reduce it to below the minimum specified.

For employees who require a protected net, the system takes into account the Pay Frequency. The value to be setup must be a weekly figure (e.g. Fortnightly Protected Net of 1000 will be keyed as 500. When the pay is produced, the system will multiply the value by the pay frequency such as 500 x 2 = 1,000 Protected Net).

This is hidden when reviewing a role salary record.

This enable the Salary Package screen on the list of Optional Information screens of the Hire Wizard. This will create a Salary Package record on the employee, even if the employee did not enter any information on the Salary Package screen of the Hire Wizard.

When no Salary Code is selected, the browselist displays the number of pay rate positions and descriptions configured via Pay Rate Code Descriptions screen.

When a Salary Code that is not linked to any Industrial Agreement is selected, same with above.

When a Salary Code that is linked to an Industrial Agreement is selected, the browselist displays the number of pay rate positions and descriptions configured via Industrial Agreement Setup screen/ mapper.

This indicates the pay rate position.

This is the description of the pay rate position.

This is the pay rate effective as at the specified date range. Base Pay Rate (i.e. pay rate 1) is mandatory. All the other rates can be left zero if not applicable to the employee.

This is the rate frequency. Frequency for Base Pay Rate (i.e. pay rate 1) is mandatory. Frequencies for all the other rates are controlled by Program Control PAYRF Position 14.