Periodicity Conversion
Rate conversion formulas convert amounts to different periodicities for payroll calculations. The following calculations use rate conversion formulas:
-
Proration
-
Hours multiplied by rates calculation of an element run result
-
Rates based on rate definitions
Predefined Periods
This table lists the predefined periods that you can use to set periodicity.
If these values don't meet your requirements, you can copy a predefined rate conversion formula and edit its periodicity values.
|
Periodicity |
Valid for Payroll Periods |
Number of Periods per Year |
|---|---|---|
|
Annually |
Yes |
1 |
|
Bimonthly |
Yes |
6 |
|
Biweekly |
Yes |
26 |
|
Calendar Monthly |
Yes |
12 |
|
Daily |
No |
365 |
|
Hourly |
No |
2920 (365 days multiplied by 8 hours) |
|
Lunar Month |
Yes |
13 |
|
Periodically |
No |
Payroll frequency determines the number of periods to use in the rate conversion. |
|
Quarterly |
Yes |
4 |
|
Semiannually |
Yes |
2 |
|
Semimonthly |
Yes |
24 |
|
Workday |
No |
260 |
|
Weekly |
Yes |
52 |
|
Work Hour |
No |
2080 (260 days multiplied by 8 hours) |
Defining Periodicity
This table lists the different ways in which you can define periodicity:
|
Object |
Task |
Description |
|---|---|---|
|
Elements |
Elements |
The Periodicity input value specifies the frequency of the element value. For example, salary element entries that hold annual salary values have an annual periodicity. |
|
Payrolls |
Payroll Definitions |
Period Type specifies the number of payroll periods. For example, the Monthly Lunar period type includes 13 payroll periods. |
|
Rates |
Rate Definitions |
Rate definition can specify the following periodicities:
|
Rate Conversion Formulas
Rate conversion formulas change the periodicity of an amount.
For example, the Standard Rate Annualized conversion formula can convert an annual salary amount to a weekly amount.
This table lists the predefined rate conversion formulas to change the periodicity of an amount.
|
Rate Conversion Rule |
Description |
Example |
|---|---|---|
|
Standard Rate Annualized |
Calculates the annual rate using the input periodicity and converts the amount to an output periodicity and rate. This rule uses default values, such as 2080 hours or 260 working days, to calculate the annual rate. You select the day or hourly basis during element definition. |
To convert a weekly amount to a semimonthly periodicity, the formula: 1. Multiplies the weekly amount by 52. 2. Divides the result by 24. |
|
Standard Rate Daily |
Calculates the daily rate using the input periodicity and converts the amount to an output periodicity and rate. This rule uses a default value, such as 260 working days a year, to calculate the daily rate. |
To convert an annual amount to daily periodicity, the formula: 1. Divides the annual amount by 365. 2. Multiplies the result by the number of days in the payroll period. |
|
Standard Working Hours Rate Annualized |
Uses the employee's standard working hours to convert the monetary value and working hours to an annual value before calculating the rate. |
The employee works 40 hours a week with a monthly salary of 1000: ((1000*12)/(40.00*52) = 5.77 an hour |
|
Assignment Working Hours Rate Annualized |
Uses the employee's working hours to convert the monetary value and working hours to an annual value before calculating the rate. |
The employee works 40 hours a week, with 37.5 standard working hours a week, and a monthly salary of 1000: ((1000*12)/(37.50*52) = 6.15 an hour |
|
Periodic Work Schedule Rate Annualized |
Uses the employee's work schedule for the payroll period for daily and hourly conversions. |
For an employee:
The formula checks the work schedule details for the month. For a daily conversion: 1000 a month/20 days in the month = 50 Note: For compensation calculations where the employee
isn't assigned a payroll, the rate is calculated using the weekly
rate calculation. The amount is converted to an annual figure and
divided by the number of days or hours in that week based on the work
schedule.
|
The impact of rate conversion rule is summarized here.:
Periodicity: The conversion rule for periodicity applies to Flat Amount, Hours * Rate, and Days * Rate calculation rules. You can override the periodicity used as the default for the element definition at the element entry level.
Work Units: The Work Units conversion rule applies only to flat amount calculation rules for standard and supplemental earnings elements. The selection of which work units to use in reports and payslips determines the conversion calculation. The application creates the element input values using the default values of the rate conversion formulas.
For example, this table illustrates how the payroll process determines the standard work units for any given pay period:
|
Work Units Selected |
Example |
|---|---|
|
Hours |
2080/24 = 86.67 |
|
Days |
260/24 = 10.83 |
|
None |
No input values are created |
Proration: The element template includes a new question for proration units. Proration rate conversion rules replace the previous proration methods in the element template. You have greater flexibility, for example, to base proration on calendar days when using work units for conversion.