Changing Employee Salaries

This chapter provides an overview of employee salary changes and discusses how to:

Set processing options for the Basic Compensation program (P0801CMP).
Change an employee salary using workflow.
Change an employee salary using pay rate information.

Understanding Employee Salary Changes

You might need to change salaries for an employee or a group of employees. For example, you might give an employee a raise to complement a promotion, or you might increase all salaries because of inflation.

Workflow is an electronic message delivery system that you can use to process salary changes automatically. The Workflow process includes obtaining approval for salary increases that exceed a specified limit and updating the Employee Master Information table (F060116). Workflow is designed to save time and reduce errors to salary changes.

You can change an employee salary using pay rate information. This method is preferable when you are changing an employee hourly, billing, or piecework rate, but you can also change the employee salary. You can specify the change as a monetary amount or as a percentage of the employee current pay rate, and you can enter a change that takes effect on a future date. You use pay rate information to update only one employee record at a time. Information entered in the Pay Rate Information program (P060131) updates the Employee Master Information table (F060116).

This table illustrates alternate methods for changing employee salaries:

Method	Description
Individual employee changes	You can manually change the value in the Salary field using the Basic Compensation program (P0801CMP).
Future date changes	If a salary change will not take effect until a future date, you can enter information using the Future Data EE Master Revisions program (P06042).
High volume changes	You can reduce data entry time by changing salaries for groups of employees using the Employee Master Mass Changes program (P06045).

This process flow illustrates the process for employee salary changes:

Employee salary changes process flow

Setting Processing Options for the Basic Compensation Program (P0801CMP)

This section discusses processing option settings for Basic Compensation (P0801CMP).

Processing Options for Basic Compensation (P0801CMP)

Processing options enable you to specify the default processing for programs and reports.

For programs, you can specify options such as the default values for specific transactions, whether fields appear on a form, and the version of the program that you want to run.

For reports, processing options enable you to specify the information that appears on reports. For example, you set a processing option to include the fiscal year or the number of aging days on a report.

Do not modify JD Edwards EnterpriseOne demo versions, which are identified by ZJDE or XJDE prefixes. Copy these versions or create new versions to change any values, including the version number, version title, prompting options, security, and processing options.

Process

These processing options enable you to specify threshold values for the salary change workflow process.

1. Workflow - Salary Threshold

Use this processing option to specify an amount that, if the salary is increased by the amount entered or increased by more than the amount entered, then the system initiates the Employee Salary Change Approval Process (EEMAST1) workflow. The system sends an approval message to the workflow recipient, and the salary is updated after the change is approved. A value of 0 indicates the workflow is disabled. The default value is 0.

2. Workflow - Salary Percent Change Threshold

Use this processing option to specify the percentage of salary increase at which the system starts the Change Approval Workflow Process (EEMAST1). When the salary is increased to or beyond the percent entered, the system starts the workflow process. The system sends an approval message to the workflow recipient and the salary is updated only after the change is approved.

Changing An Employee Salary Using Workflow

This section provides an overview of changing an employee salary using workflow and discusses how to:

Initial a salary change
Approve a salary change

Understanding Employee Salary Changes Using Workflow

PeopleSoft Enterprise Workflow Management from Oracle automates the process of changing an employee salary by notifying the appropriate supervisors for salary approval and updating the database with the salary change.

The process of using PeopleSoft Enterprise Workflow Management to change a salary usually involves more than one supervisor or manager. For example, the employee supervisor might originally enter the salary change information. After the supervisor enters this request, the supervisor's manager must approve the change before it becomes effective. You can set a salary threshold in the processing options for the Basic Compensation program (P0801CMP) so that Enterprise Workflow Management obtains approval for a certain percentage or flat monetary salary increase.

Initiating a salary change is completed by a manager. Approving a salary change is a procedure that a manager performs after receiving a message about a salary change. Find which tasks apply to you.

If you are a supervisor or manager who is responsible for initiating a salary change, you can send a message to the person who is responsible for approving the change.

After you initiate a salary change, the pending salary change remains in the supervisor queue until the supervisor approves or rejects the change. When the supervisor approves or rejects the change, Workflow sends you a message.

If you are a supervisor who is responsible for approving salary changes, you can approve a salary change after you receive a salary change message in the Workflow queue.

After an employee enters salary change information, Workflow sends the request to the queue for review. You can accept or reject the request. The salary change does not take effect until you respond to the request.

Note. If more than one approval is needed for a salary change, the change does not take effect until all supervisors respond.

You can review the salary change in the Salary field on the Basic Compensation form.

Prerequisite

Before you complete the tasks in this section:

Create a congratulatory letter, if needed.

See JD Edwards EnterpriseOne Tools 8.96 Foundation Guide
Select a version and set up the processing options for the Basic Compensation program (P0801CMP).
Verify that the Workflow process EEMAST1 is activated in the Object Management Workbench program (P98220).

See JD Edwards EnterpriseOne Tools 8.96 Workflow Tools Guide

Forms Used to Change Salaries

Form Name	FormID	Navigation	Usage
Basic Compensation	W0801CMPB	Employee Management (G05BE1), Basic Compensation On the Work With Basic Compensation form, locate the employee record you wish to change and click Select. On the Basic Compensation form, complete the Salary field and click OK.	Initiate a salary change. A delay might occur after you click OK. The delay indicates that the workflow process has been activated. A message appears to confirm that the changes have been submitted for approval and are pending review.
Work Center	W012503F	Workflow Management (G02), Employee Queue Manager On the Work With Employee Queue Manager form, select the desired employee and click Select.	Approve a salary change.

Form Name

FormID

Navigation

Usage

Basic Compensation

W0801CMPB

Employee Management (G05BE1), Basic Compensation

On the Work With Basic Compensation form, locate the employee record you wish to change and click Select.

On the Basic Compensation form, complete the Salary field and click OK.

Initiate a salary change.

A delay might occur after you click OK. The delay indicates that the workflow process has been activated. A message appears to confirm that the changes have been submitted for approval and are pending review.

Work Center

W012503F

Workflow Management (G02), Employee Queue Manager

On the Work With Employee Queue Manager form, select the desired employee and click Select.

Approve a salary change.

Initiating a Salary Change

Access the Basic Compensation form.

Salary

Enter the amount that an employee is paid in one year, assuming that the employee is paid every pay period of the year.

When you enter a value in this field for a salaried employee, the system calculates the hourly rate based on one of these:

Standard hours per year entered at the employee level.

Standard hours per year specified in company options.

Approving a Salary Change

Access the Work Center form.

To approve a salary change:

Click the Salary Approval button in the left queue.

All salary requests pending approval appear in the right queue.
To approve or reject a salary change, click the Workflow Approval button in the middle of the form, and then click the Workflow Approval button in the right section of the form.
On the Workflow Approval form, select of these options to accept or reject the salary change request, add text if applicable, and click OK.
- Accept
- Reject
On the Work Center form, click Close.

Skip To Name

Enter text that names or describes an address. This 40 character alphabetic field appears on a number of forms and reports. You can enter dashes, commas, and other special characters, but the system cannot search on them when you use this field to search for a name.

Search Type

Enter a defined code (01/ST) that specifies the kind of address book record to search for. Examples include:

E: Employees

X: Ex-employees

V: Suppliers

C: Customers

P: Prospects

M: Mail distribution lists

TAX: Tax authorities

Cat Code 1 (category code 1)

Enter one of thirty reporting codes that you can assign to an address in Address Book. Use these codes to group address book records for reports, mailings, and so on. Category codes are defined (system 01, types 01 through 30). Examples of category codes include:

Category code 01: Location or Branch

Category code 02: Salesperson

Category code 03: Product

Category code 04: Credit officer

Changing An Employee Salary Using Pay Rate Information

This section provides an overview and discusses how to change an employee salary using pay rate information.

Understanding Employee Salary Changes Using Pay Rate Information

You can change an employee salary using pay rate information. This method is preferable when you are changing an employee hourly, billing, or piecework rate because you directly enter the change to the rate. You can specify the change as a monetary amount or as a percentage of the employee current pay rate, and you can enter a change that takes effect on a future date. For example, suppose that you enter a future effective date after you enter a pay rate change. When the future date occurs, the system can automatically update the employee pay rate information. To automate this process, you must either run JD Edwards EnterpriseOne payrolls or run the Employee Master Update (R06394) daily in the job scheduler. If the effective date is between pay cycles, the new rate appears in the payment for the first pay period after the effective date.

You use pay rate information to update only one employee record at a time. Information entered in the Pay Rate Information program (P060131) updates the Employee Master Information table (F060116).

Form Used to Change Employee Salaries Using Pay Rate Information

Form Name	FormID	Navigation	Usage
Pay Rate Revisions	W060131A	Employee Management (G05BE1), Pay Rate Information On the Work With Pay Rate Information form, locate the desired employee record and click Select.	Change employee salaries using pay rate information.

Form Name

FormID

Navigation

Usage

Pay Rate Revisions

W060131A

Employee Management (G05BE1), Pay Rate Information

On the Work With Pay Rate Information form, locate the desired employee record and click Select.

Change employee salaries using pay rate information.

Changing Employee Salaries Using Pay Rate Information

Access the Pay Rate Revisions form.

To change an employee salary using pay rate information:

Review the current rates in any of these fields of the Current Rate column:
- Annual Salary
- Hourly Rate
- Billing Rate
- Burden Rate
- Piecework Rate
To define a future pay change as a percent or flat amount increase, select either the Flat or the Percent option in the Method group box.
Complete as many of the fields as necessary in the Planned Increase column for each rate that you are changing.

Add a monetary amount or a percentage to each field, depending on the method you chose.
In the Effective Date column, complete as many of these fields as necessary for each rate that you are changing:
- Next Raise Date
- New Bill Rate Date
- New Burden Rate Date
- New Piece Rate Date
Complete the Change Reason field.
Review the new rates in the New Rates column and click OK.

Annual Salary	Enter the amount that an employee is paid in one year, assuming that the employee is paid every pay period of the year.
Billing Rate	Enter a number that specifies the rate that the system uses to bill for labor services. This rate is often referred to as the billing or recharge rate. The system charges the resulting amount, based on this rate, to the primary distribution account for the timecard. The system also enters an offset to an account that is derived from AAIs. This rate does not affect employee payroll. To enable billing rates in time entry, the employee record type must be set to 2 (payroll and recharge processing) or 3 (recharge processing only) with the Employee Payroll program (P0801PRL).
Burden Rate	Enter an hourly rate to be used when charging burden associated with the actual billing (recharge) amounts.
Flat	Enter the method by which the pay increase amount is to be calculated. The increase can either be a percentage of the current amount or a monetary amount.
Next Raise Date	Enter the date that the hourly or annual pay rate for the employee increases. The new rate goes into effect after a payroll cycle completes with a pay period end date on or after the date of the next raise.
New Bill Rate Date	Enter the date on which the new billing rate for an employee goes into effect. The new rates actually go into effect AFTER THE PAYROLL PROCESSING RUN that has a payroll date on or after this date.
New Burden Rate Date	Enter the date on which the new burden billing rate for an employee takes effect. The new rates actually go into effect AFTER THE PAYROLL PROCESSING RUN that has a payroll date on or after this date.
New Piece Rate Date	Enter the date on which the new piecework rate for an employee goes into effect. The new rates actually go into effect AFTER THE PAYROLL PROCESSING RUN that has a payroll date on or after this date.
Chg Rsn (change reason)	Enter a code that indicates the reason for one of these: Changing an active employee record. Terminating an employee. Recommending a change in salary or rate. This is a defined code (06/T). If you are reactivating an employee, the code must be numeric. The code for new hires is the default reason code.
Current Pay Effective Date	Enter the date of the employee last raise. For Human Resources, this is the date when you update salary and wages. If you also have Payroll, this date is automatically updated when a payroll is run. You define pay effective dates using the Pay Rate Information screen.