Example: Scenario 3 - No Pay Rate Source as the Default Pay Rate Source
If the organization consists of employees whose salaries and hourly rates are based on a pay range rather than specific amounts for a job or pay grade step, you can select not to use a default pay rate source. If you select this option, you will need to enter each salary or hourly rate individually.
This is a good option for companies that do not use predefined rates for all employees in like jobs. This option might also be preferable for an organization with few positions and few job types.
When you add a new employee, you must enter either a salary or an hourly rate on the Basic Compensation form (W0801CMPB). The system provides a default value for standard hours per year, which you can override, if necessary. When you enter a salary for an employee, the system calculates an hourly rate, based on the salary and standard hours per year. Conversely, when you enter an hourly rate, the system calculates the salary.
This table illustrates the guidelines for changing the values on the Basic Compensation form (W0801CMPB):
Value |
Impact |
|---|---|
Salary |
When you change the employee salary, the system recalculates the hourly rate, based on the new salary and the standard hours per year for the employee. |
Standard hours per year |
When you change the standard hours per year for an employee, the system recalculates the hourly rate, based on the new standard hours per year and the existing salary. |
FTE |
When you change the FTE for an employee, the salary and hourly rate calculations are not affected. |
This table illustrates the guidelines for changing the values on the Basic Compensation form (W0801CMPB):
Value |
Impact |
|---|---|
Hourly rate |
When you change the hourly rate for an employee, the standard hours per year are not affected. The system recalculates the annual salary for the employee, based on the new hourly rate and the standard hours per year for the employee. |
Standard hours per year |
When you change the standard hours per year for an employee, the system recalculates the salary, based on the new standard hours per year and the employee hourly rate. |
FTE |
When you change the FTE for an employee, the salary and hourly rate calculations are not affected. |