Delivered Earnings
PeopleSoft Global Payroll for United States delivers a number of earnings for the U.S. that demonstrate the flexibility of Global Payroll rules to meet common processing requirements such as the calculation of wages and overtime.
In this table, the first column combines the name and description of the delivered earnings. The other columns indicate the calculation rule components, such as Unit, Rate, Percent, and Amount, and the pre-process and post-process formulas for each earning.
| Name/Descr. | Unit | Rate | % | Amount | Pre- and Post- Process Formula |
|---|---|---|---|---|---|
|
REGULAR Regular Hourly |
Payee-level |
K1GCRH (rate code) |
NA |
NA |
NA |
|
WAGES Exception Hourly Wages |
ERN FM SALARY HOURS (formula) |
K1GCRH (rate code) |
NA |
NA |
Post-ERN FM RED HRS/AMT |
|
SALARY |
NA |
NA |
NA |
K1GCRS (rate code) |
Post-ERN FM RED SALARY |
|
OVT 1.5 Overtime Pay |
Payee-level |
ERN FM OVT RATE (formula – monetary and decimal) |
150% |
NA |
NA |
|
OVT 2.0 (D Double - Time Pay |
Payee-level |
ERN FM OVT RATE (formula – monetary and decimal) |
200% |
NA |
NA |
|
PREMIUM Premium Over Time |
Payee-level |
ERN FM OVT RATE (formula – monetary and decimal) |
50% |
NA |
NA |
|
BONUS |
NA |
NA |
NA |
Payee-level |
NA |
|
COMPANY CAR Personal Use of Company Car |
NA |
NA |
NA |
Payee-level |
NA |
|
SHIFT - R Shift Differential - Hourly |
SHIFT DIFF UNIT (accumulator) |
ERN BR SHIFT DIFF (bracket) |
NA |
NA |
NA |
|
SHIFT PCT Shift Differential - Percentage |
SHIFT DIFF UNIT (accumulator) |
HOURLY RT (system element - numeric) |
ERN VR SHIFT D PCT (variable - numeric) |
NA |
Pre-ERN FM SHIFT D PCT |
Note:
These elements are defined as PS Delivered/Not Maintained. This means that you can use them as delivered, modify them, or replace them with new elements.
Note:
PeopleSoft Global Payroll for United States also delivers absence-related earnings. These are discussed in a separate topic in this product documentation.
See Understanding Absence Elements.
Regular Hourly Pay and Wages
PeopleSoft Global Payroll for United States delivers two types of earnings for calculating regular pay:
-
REGULAR
Use this earning to calculate pay for hourly payees who require positive input.
-
WAGES
Use this earning to calculate pay for hourly payees who need to report only exceptions to their standard hours.
The calculation rule for both REGULAR and WAGES is Unit × Rate.
Both earnings use the rate code K1GCRH for the Rate component. This rate code is used to calculate pay for all hourly payees.
The Unit component differs for these two earnings:
-
The REGULAR earning assumes that the Unit (time paid) is recorded at the payee level through positive input.
-
The WAGES earning assumes that payees are paid a standard set of hours for each pay period, and that only exceptions need to be reported through positive input. The Unit component for this earning includes a formula—ERN FM SALARY HOURS—that calculates the standard hours.
This formula:
-
Multiplies the STD HRS system element by the STD HRS FREQ FACTOR system element to calculate the ANNUAL HOURS (stored as a variable).
-
Divides the ANNUAL HOURS variable by the PRD FREQ FACTOR (pay period frequency factor) system element to calculate the pay period standard hours.
-
The post-process formula for the WAGES earning, ERN FM RED HRS/AMT, reduces the pay period standard hours by any absence or holiday hours. This formula requires the use of the REDUCE SAL H accumulator to sum up the hours for all earnings, such as vacation, that should reduce the standard hours.
In addition, this formula ensures that the WAGES earning is not reduced by absences to a negative amount.
Salary
Use the SALARY earning to pay salaried employees.
The calculation rule for SALARY is Amount, with the amount defined as the rate code K1GCRH.
The post-process formula for the SALARY earning, ERN FM RED SALARY, performs two functions:
-
It calculates standard hours and reduces these hours by the number of absence hours.
-
It ensures that the salary amount is not reduced by absences to a negative amount.
Overtime
PeopleSoft Global Payroll for United States delivers two overtime earnings: OVT 1.5 for overtime calculated at 1.5 times the regular pay rate, and OVT 2.0 for overtime calculated at twice the regular pay rate.
The calculation rule for both overtime earnings is Unit × Rate × Percent, where Unit is the number of overtime hours that a payee works, Rate is the formula ERN FM OVT RATE, and Percent is either 150 or 200. The units are entered at the payee level.
Note:
The delivered overtime earnings include a shift differential. This differential is included in the calculation of the earnings only if the employee is associated with a shift group and a shift ID.
Premium Pay
Premium pay refers to the excess over the regular rate of pay that is paid for extended working hours, overtime, or work during holidays. PeopleSoft Global Payroll for United States delivers the PREMIUM earning to calculate premium pay.
The calculation rule for premium pay is Unit × Rate × Percent, where Unit is the number of extended hours worked, Rate is the formula ERN FM OVT RATE, and Percent is 50. The units are entered at the payee level.
Note:
Premium pay includes a shift differential. This differential is included in the calculation of the earnings only if the employee is associated with a shift group and a shift ID.
Bonus
PeopleSoft Global Payroll for United States delivers the BONUS earning to calculate bonus pay. The calculation rule for bonus pay is Amount, where a payee's bonus is entered as a numeric amount at the payee level.
The BONUS earning uses the Supplemental tax method.
Personal Use of a Company Car
PeopleSoft Global Payroll for United States delivers the COMPANY CAR earning to calculate the personal use of a company car. The calculation rule for COMPANY CAR is Amount; the amount is entered at the payee level. The COMPANY CAR earning does not add to gross pay, but to taxable gross.
Shift Differential
PeopleSoft Global Payroll for United States delivers two earnings to calculate shift differentials: SHIFT - R and SHIFT PCT.
The calculation rule for SHIFT R is Unit × Rate, where Unit is the accumulator SHIFT DIFF UNIT, and Rate is the bracket ERN BR SHIFT DIFF.
The calculation rule for SHIFT PCT is Unit × Rate × Percent, where Unit is the Accumulator SHIFT DIFF UNIT, Rate is the system element HOURLY RT, and Percent is the variable ERN VR SHIFT D PCT.
The system processes these earnings only if the accumulator SHIFT DIFF UNIT holds units (hours) processed for the eligible shift earnings. Only two of the delivered earnings—REGULAR and WAGES—are defined as eligible. That is, the units of these earnings are the only members of this accumulator. If no units come from these earnings, then SHIFT - R and SHIFT PCT are not processed. In addition, payees must be assigned to shift groups and shift IDs before the system can process SHIFT - R or SHIFT PCT.
Note:
The earnings SHIFT - R and SHIFT PCT use the generation control element ERN GC SHIFT EXC to control processing. This formula looks at the accumulator SHIFT DIFF UNIT and the values of the shift group and shift ID. If the value of SHIFT DIFF UNIT is greater than zero and the payee is in a shift group and has a shift ID, the system processes the earnings.