Calculating Minimum and Maximum Hourly Rates and Earnings Limits

The ONCALL earning element uses a formula-driven minimum and maximum hourly rate-check and a post-process formula to determine if the payment of ONCALL causes earnings to exceed an annual limit.

The calculation rule for ONCALL is Unit × Rate, where:

Unit = Payee level

Rate = Formula ERN FM HOURLY RT

When you assign the earnings element or enter it as positive input, the system checks the payee's hourly rate in the Job record in Human Resources to resolve the earnings. It then takes one of the following actions:

• If the hourly rate is less than the value set in variable ERN VR HR RT MIN, then the system pays ONCALL at the value of the variable.

• If the hourly rate is more than the minimum but less than the maximum set in variable ERN VR HR RT MAX, then the system pays ONCALL at the hourly rate from the Job record.

• If the hourly rate is more than the value set in variable ERN VR HR RT MAX, then the system pays ONCALL at the value of the variable.

Here is an example. Suppose that the minimum is 50, and the maximum is 70.

You can set the variables values on the Supporting Element Override page in the earnings components.

To set a yearly limit (or ceiling) on an earning element, you can set the limit in LIM VR YTD LIMIT. The ONCALL earning element is set up for this control.

After the system determines the value of ONCALL for the period, the post-process formula LIM FM ONCALL adds the value of the year-to-date accumulator for ONCALL with the current amount and any additional pay. Here is an example:

Accumulator YTD balance = 1000

Current earning amount = 50

Additional earning amount = 0

Yearly limit = 1010

ONCALL_FYTDA + CURR AMT VAL + ADD VR ADDL AMT = New accumulator balance (if paid)

1000 + 50 + 0 = 1050 (new balance)

It then compares that new balance with LIM VR YTD LIMIT. If the balance exceeds the limit, the system calculates by how much it would exceed the limit if paid.

New balance – Limit = Excess amount

1050 − 1010 = 40

It then subtracts the excess amount from the current amount, reducing it to the maximum that can be paid during the current period without exceeding the limit.

(CURR AMT VAL + ADDL AMT VAL) − LIM VR OVER LIMIT = Amount to pay during the period

50 − 40 = 10

You can set other limits for other frequencies by using a formula that compares the total paid with the frequency limits for the earnings.

You can set an upper limit on an earning so that no more than that amount is paid in a particular accumulation period. The PRDBON (product bonus) earning element is set up with this control. It is set up to have a quarterly limit. You set the limit in LIM VR QTD LIMIT.

After the system calculates the PRDBON amount for the pay period, the post-process formula LIM FM PRDBON adds the value to the quarter-to-date accumulator and compares the total to the limit that you have set. If paying the earnings would exceed the limit for the quarter, the system pays only up to the limit.

The PRDBON calculation rule is Amount, where:

Amount = 40

Here is an example. Suppose that a product bonus is payable each month up to a quarterly limit of 110.

When processing PRDBON in month 3, the formula makes the following calculation:

PRDBON_FQTDA + CURR AMT VAL > LIM VR QTD LIMIT

80 + 40 > 110

It then calculates the amount by which the current amount would exceed the limit:

PRDBON_FQTDA + CURR AMT VAL − LIM VR QTD LIMIT = LIM VR OVER LIMIT

80 + 40 − 110 = 10

It then subtracts the excess amount from the current amount and pays that amount.

CURR AMT VALUE − LIM VR OVER LIMIT = PRDBON

40 − 10 = 30

PRDBON has a generation control, ERN GC PRDBON, the formula of which, LIM FM CHK PRDBON, determines if the quarter-to-date amount accumulator is equal to or greater than the limit. If it is, the system does not process the earnings. The quarter-to-date amount can be greater than the limit, despite the controls, because positive input does not use the generation control.