Example: Scenario 1 - The Pay Rate Table as the Default Pay Rate Source

When you need to associate pay rates with a specific group of employees, such as members of a union, you can use the pay rate table as the default pay rate source. The pay rate table, as set up in the Union Rates Master Revisions program (P059121), associates job types and steps with union codes. Therefore, specific hourly rates are attached to union codes when you set up hourly rates with job types and steps. The compensation information that you enter in this program is copied to the forms that you use when you hire employees.

The pay rate table is frequently used by the public sector and other industries that are closely linked to unions.

Pay rate tables are useful for positions that are compensated based on a flat rate, rather than a pay range. Pay rates can be used with hourly jobs, for which an employee is paid a set hourly rate regardless of performance or seniority. For use with unions, pay rate ranges usually need to accommodate only seniority adjustments. However, the use of pay rates can include performance adjustments. To recognize performance, you need to set up a pay type, such as bonus pay, or change the employee job type to a job type that is attached to an increased pay rate.

To use the information in the pay rate table when you add an employee record, you complete the Job Type, Job Step, and Union Code fields, and leave the Salary and Hourly Rate fields blank. The system automatically supplies the salary and hourly rate values for the corresponding Job Type, Job Step, and Union Code found on the pay rate table.

On the Basic Compensation form (W0801CMPB), the system supplies a default value for standard hours per year, which you can override, if necessary. Overriding the standard hours per year does not affect an employee hourly rate.

This table illustrates the guidelines for changing the values on the Basic Compensation form:

Value	Impact
Hourly rate	You cannot change the hourly rate for an employee. The system supplies the default hourly rate from the pay rate table.
Standard hours per year	When you change the standard hours per year for an employee, the hourly rate does not change. The system recalculates the annual salary for the employee.
Full time equivalents (FTE)	When you change the FTE field for the employee on the Basic Compensation form, you must also remove the value entered for standard hours per year. The system adjusts the employee standard hours per year. The hourly rate remains the same.

Value

Impact

Hourly rate

You cannot change the hourly rate for an employee. The system supplies the default hourly rate from the pay rate table.

Standard hours per year

When you change the standard hours per year for an employee, the hourly rate does not change.

The system recalculates the annual salary for the employee.

Full time equivalents (FTE)

When you change the FTE field for the employee on the Basic Compensation form, you must also remove the value entered for standard hours per year. The system adjusts the employee standard hours per year. The hourly rate remains the same.