Understanding Position Budget Information Reviews

To ensure that the salary amounts that you defined in the position budgets compare favorably to the actual salaries of the employees in those positions, you should periodically review position budget information. You can review this information for a specific business unit or position, or by the activity involving the position.

When you review position budget information, the system displays projected year end salary amounts that you can compare with budgeted amounts. The system calculates these amounts based on employee annual salaries and their associated effective dates. The system calculates projected year end amounts by adding together the prorated annual salaries for all of the employees who served in the position during the year. If an employee does not work an entire year in the same position, the system prorates the employee annual salary for the amount of time that the employee worked in the position during the fiscal year.

For example, assume that these conditions exist:

• Position A2 (accountant) pays an annual salary of 42,000.

• Cathy worked in position A2 from January 1 through April 30 (85 days multiplied by 8 hours = 680 hours), so her projected annual salary for that position is 13,729.20 (42,000 divided by 2080 = 20.19; 20.19 multiplied by 680 hours = 13,729.20).

• The position was vacant from May 1 to May 31.

• George worked in position A2 from June 1 through December 31 (153 days multiplied by 8 hours = 1224 hours), so his projected annual salary was 24,712.56 (42,000 divided by 2080 = 20.19; 20.19 multiplied by 1224 hours = 24,712.56).

The system calculates the projected year end amount for position A2 as 38,441.76 (13,729.20 plus 24,712.56).