Rate Conversion Rules

You can select specific formula rules when you create an element to manage rate conversions. Conversion rules apply to earnings classification elements, including standard, supplemental, absence, and time elements.

Use one of these approaches to specify these conversion rules.

• Periodicity, if you select a calculation rule for flat amount, hours multiplied by rate, or days multiplied by rate

• Work Units, if you select flat amount calculation rule for a standard or supplemental earnings element

• Proration, if the element is subject to proration

Note: Unlike earning elements, Absence and Time Card elements don't have element input for conversion rules. To edit the conversion rules for such elements after they're created, do these steps:

Conversion Rules

This table describes the predefined formula rules.

Conversion Rule	Calculation	Example
Standard Rate Annualized	Converts the source amount and periodicity to an annual value using default values of 2080 hours, 260 working days. Converts the amount to the required periodicity and rate.
Standard Rate Daily	Calculates a daily rate using default value 260 working days. Converts the amount to the required output periodicity and rate.
Standard Working Hours Rate Annualized	Converts the source amount and working hours to an annual value, using the employee's standard working hours. Calculates the rate.	Employee works 40 hours a week with a monthly salary of 1000 pounds: ((1000*12) / (40.00*52) = 5.77 an hour
Assignment Working Hours Rate Annualized	Converts the source amount and working hours to an annual value, using the employee's working hours. Calculates the rate.	Employee works 40 hours a week, with a 37.5 standard working hours a week, and a monthly salary of 1000 pounds: ((1000*12) / (37.50*52) = 6.15 an hour
Periodic Work Schedule Rate Annualized	Converts the monetary value and work schedule to an annual value, using the employee's work schedule for the payroll period for daily and hourly conversions. Calculates the rate.	Employee assigned a payroll: Employee has a monthly salary of 1000 pounds, and is assigned a monthly payroll. The formula checks the work schedule details for the month. For a daily conversion: 1000 a month / 20 days in the month = 50 Employee not assigned a payroll: Rate is calculated using the weekly rate calculation. The amount is converted to an annual amount. The amount is divided by the number of days or hours in that week based on the work schedule.

Work Schedule Calculations

For the Periodic Work Schedule Rate Annualized rule, the formula determines whether a work schedule exists for a person. The calculation begins at the assignment level and continues in the mentioned order until it finds a schedule.

1. Assignment

2. Position

3. Job

4. Department

5. Location

6. Legal Employer

7. Enterprise

Consider these conditions to accurately calculate elements for a payroll period:

• Confirm that a work schedule assigned to a person exists at the start date of the payroll period in which you're paying the person.

• If a person has multiple assignments for a term, create the work schedule at terms or assignment level, but not at both levels. You could find calculation errors while setting up schedules at both levels.