Earnings Code with Adjustment Factor
You can set up earnings codes for shift pay using these factors on the Earnings Table – Calculation page:
| Factor | Description |
|---|---|
|
Rate Adjustment Factor |
An amount that adjusts the hourly rate that is associated with the earnings. |
|
Earnings Adjustment Factor |
An amount that adjusts the total earnings amount calculated for the earnings. |
Here are some additional considerations for using earnings code adjustment factors to calculate shift pay:
-
The paysheet must contain the shift earnings code in Other Earnings.
The system adds the shift earnings code during paysheet creation if you set it up on the Create Additional Pay page for the employee.
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You must enter the shift hours for each shift code on the employee's paysheet.
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You cannot use these adjustment factors to base the shift pay on other earnings or special accumulators.
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You can use these factors in conjunction with the Hourly Rate field on the Create Additional Pay page for the employee.
Example: Rate Adjustment Factor Calculation
The system uses this method to calculate the shift pay with a rate adjustment factor:
| Step | Formula |
|---|---|
|
Calculate new hourly rate |
hourly rate (job data or additional pay) + adj. factor = new hourly rate |
|
Calculate the amount of pay |
new hourly rate x hours = amount |
This example shows the calculation of a rate adjustment factor of $5.50 for an employee who worked 8 hours with an hourly rate of $10.00 in the pay earnings record:
| Step | Example |
|---|---|
|
Calculate new hourly rate |
$10.00 + $ 5.50 = $15.50 |
|
Calculate the amount of pay |
$15.50 x 8 = $124.00 |
Example: Earnings Adjustment Factor Calculation
The system uses this method to calculate the shift pay with an earnings adjustment factor:
| Step | Formula |
|---|---|
|
Calculate earnings amount |
hours x hourly rate (job data or additional pay) = earnings amount |
|
Calculate new earnings amount |
earnings amount + factor = new earnings amount |
This example shows the calculation of an earnings adjustment factor of $25.00 for an employee who worked 8 hours with an hourly rate of $10.00 in the pay earnings record:
| Step | Example |
|---|---|
|
Calculate earnings amount |
8 x $10 = $80 |
|
Calculate new earnings amount |
$80 + $25 = $105.00 |