Factors Applied to the Compensation Rate
PeopleSoft HCM calculates and displays compensation rates in the hourly, daily, weekly, monthly, and other frequencies using standard frequency conversion formulas. Depending on the frequency being converted, the system performs the calculations by applying one or more of the following to the compensation rate:
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Compensation frequency annualization factor.
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Job standard hours.
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Standard work period frequency annualization factor.
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FTE (full-time equivalency) factor.
Frequency Annualization Factor
Each frequency ID has an associated annualization factor that represents the number of times that the period occurs in the course of a year.
See Frequency IDs.
Standard Hours and the Standard Work Period
When converting hourly compensation rates, the frequency conversion calculations use the job standard hours and the standard work period. Job standard hours define how many hours the worker should work in the job. The standard work period defines the work period in which the standard hours should be completed. You define the standard work period by selecting a frequency ID (and its annualization factor) as defined on the Frequency Table component.
You define the standard hours and the standard work period on the following pages:
| Component | Page | Assignment Level |
|---|---|---|
|
Installation Table |
HCM Options |
Values for an organization |
|
Org Defaults by Permission Lst (OPR_DEF_TBL_HR) |
Settings (OPR_DEF_TBL_HR2) |
Values for a primary permission list |
|
Position Data (POSITION_DATA) |
Description (POSITION_DATA1) |
Values for a position |
|
Define Salary Plan |
Salary Plan Table (SALARY_PLAN_TABLE) |
Values for a salary plan |
|
Job Code |
Job Code Profile |
Values for a job code |
|
Job Data |
Job Information (JOB_DATA_JOBCODE) |
Values for an employee |
|
Job Openings (HRS_JOB_OPENING) |
Job Opening (HRS_JOB_OPENING) |
Values for an employment application |
The minimum and maximum standard hours values and the standard work period defined on the Business Unit HR Defaults page (BUS_UNIT_OPT_HR) are used for validation edits in the Job Data and Position Data components.
Defaults for Standard Hours and Standard Work Period
The system inserts the standard hours and the standard work period as default information only if both are defined. The following table describes the source of defaults in Job data under the specified conditions:
| Condition | Default Source |
|---|---|
|
You assign the worker a salary plan. |
Salary Plan Table page |
|
You assign the worker to a position. |
Description page of the Position Data component |
|
You assign the worker a job code. |
Job Code Profile page of the Job Code component |
|
You didn't indicate standard hours on the Salary Plan table, Job Code table, or Position Data table. |
HCM Options page of the Installation component |
Full-Time Equivalency
Full-time equivalency (FTE) is the percentage of full time that a worker should normally work in a job. In calculating the FTE, the system uses your definition of the standard hours and the standard work period.
If you select Apply FTE for a compensation component, PeopleSoft Human Resources uses the standard hours and the standard work period to compute FTE to prorate holiday hours and pay for part-time and hourly workers.
Note:
(FRA) For workers in French regulatory regions, the system uses the PAID_FTE field to prorate holiday hours and pay for part-time and hourly workers.
PeopleSoft Human Resources calculates FTE using the product of the standard hours of the job multiplied by the annualization factor of the job's standard work period which is then divided by the product of the default standard hours multiplied by the annualization factor of the default full time standard hours work period, as shown in this equation:
In this equation, the default full-time standard hours and default full-time standard work period are from:
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The Salary Plan component (if a salary plan is defined for the worker, and if both standard hours and standard work period are defined for this salary plan).
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The Org Defaults by Permission Lst component (if no salary plan is defined for the worker, and if both standard hours and standard work period are defined in the Org Defaults by Permission Lst component).