# 2 Manage Base Pay

This chapter contains the following:

Manage Base Pay: Overview

Calculating Full-Time Salary and Annualized Salary: Examples

Editing Salaries in the Integrated Workbook: Explained

FAQs for Manage Base Pay

## Manage Base Pay: Overview

View and adjust workers' base salary. Line managers can award compensation in a variety of business flows and work areas. Compensation managers and HR specialists can perform the same tasks for administrative, oversight, and troubleshooting purposes.

They can:

• View a worker's salary basis and change it, subject to security and other constraints.

• Adjust base pay by adjusting amount, percentage, compa-ratio, or other salary factors.

• View salary history, as well as graphical analysis of current and new salary.

To manage base pay, start from the following work areas:

Role

Work Area

Line Manager

Manager Resources Dashboard

Select Navigator - Manager Resources.

Person Gallery

Select Navigator - Person Gallery.

Compensation Manager

Compensation

Select Navigator - Compensation.

HR Specialist

Person Management

Select Navigator - Person Management.

Person Gallery

Select Navigator - Person Gallery.

## Calculating Full-Time Salary and Annualized Salary: Examples

The following scenarios illustrate how the application calculates the annual salary and annualized full-time salary using standard working hours, worker's working hours and full-time equivalent (FTE), salary amount, annualization factor, and frequency.

All of the examples assume the following:

• Legal employer standard working hours per week is 40.

• Currency is US dollars (USD).

• FTE is calculated using the following formula:

Worker's Working Hours per Week divided by Standard Working Hours per Week

• Annualization factor for hourly workers represents the Legal Employer Standard Working Hours per Week x Weeks per Year

The standard working hours, working hours, and FTE come from the worker's employment record, which you can view using the Manage Employment task in the Person Management work area. The annualization factor and the frequency for the salary come from the salary basis associated with the worker's salary record.

### Worker's Hours Equal the Standard Working Hours

The worker's standard working hours, 40, are the same as those for the legal employer, for an FTE of 1 and an annualization factor of 2080. Base pay is 15 USD per hour.

• Annual salary is 31,200 USD, calculated as 15 x (2080/1).

• Annualized full-time salary is also 31,200 USD, calculated as 15 x (2080/1).

### Worker's Hours Are Less Than the Standard Working Hours

The worker's standard working hours are 20 hours per week, for an FTE of .5 and an annualization factor of 2080. Base pay is 15 USD per hour.

• Annual salary is 15,600 USD, calculated as 15 x (2080/.5).

• Annualized full-time salary is 31,200 USD, calculated as 15 x (2080/1).

### Worker's Hours Are Greater Than the Standard Working Hours

The worker's standard working hours are 48 hours per week, for an FTE of 1.2. Base pay is 20,000 USD annually, so the annualization factor is 1.

• Annual salary is 16,667 USD, calculated as 20,000 x (1/1.2).

• Annualized full-time salary is 20,000 USD, calculated as 20,000 x 1.

## Editing Salaries in the Integrated Workbook: Explained

You can generate the integrated Microsoft Excel workbook, populated with the salary information that matches your download parameters. Use the integrated workbook to edit the salary information and then upload your changes into the application database. Repeat these steps as many times as required to accommodate revisions.

The workbook enables you to edit salary by providing a salary change percentage or amount, not change the salary basis.

1. Generate and populate the workbook.

2. Edit the workbook data.

4. Resolve errors.

### Generating and Populating the Workbook

On the Compensation work area, Download Salaries page, select the download parameters, including salary start date, and currency. If you plan to upload your workbook edits, select the latest salary start date and local currency options.

Note

The currency shown comes from the input value of the payroll element attached to the salary basis.

To generate the workbook and populate it with the data that matches your download parameters, click Prepare in Workbook.

### Editing Workbook Data

Edits in cells with a nonwhite background are not uploaded or could cause upload errors. The workbook displays a symbol in the Changed cell to mark the rows where you entered data in one of the white cells.

If you enter a new base salary or new amount, you must also enter a new salary start date. Ensure that the new base salary and current base salary are not the same. Otherwise, you will receive update failed errors when you upload your changes.

The workbook contains five columns to hold data for up to five active salary components of a salary basis. When there are fewer than five active salary components for a salary basis, only the column cells for the active salary components contain values. The other column cells remain blank. If there are more than five active salary components, the download includes only the first five.

Warning

Only those rows that are marked as changed are uploaded into the application database. The upload validates the data. To validate your changes, open the Manage Salaries page, then search for and select a person whose salary you updated.

### Resolving Errors

The application automatically updates the Status column of the workbook indicating if the row was updated successfully in the application or if the update failed. If there are errors that require review, the upload rolls back the change in the application database and sets the row status in the workbook to Update Failed. Then, it continues to the next row in the workbook. Double-click Update Failed in the Status cell to view the error. Fix any data issues in the workbook and upload the new changes or make the changes manually in the application.

## FAQs for Manage Base Pay

### What's a salary basis?

The salary basis determines the period in which base pay is expressed, specifies whether salaries can be itemized with components, and identifies any associated grade rate for salary validation.

A worker's salary basis generally remains constant. However, if a worker is promoted from an individual contributor to a manager, the salary basis might require change from hourly to annual. Or a union contract amendment might mandate itemizing a worker's pay rate, requiring change from an hourly salary basis that does not use components to an hourly salary basis that uses components.

### How can I edit multiple salaries at one time?

Use the integrated workbook in the Compensation work area to view and edit salaries for multiple persons. Then, upload your changes into the application database. Use the Export Salaries task to set your export parameters and then generate the workbook by clicking Prepare in Workbook in the Edit Preview section.