Rate Conversion Rules
You can select specific formula rules when you create an element that manages rate conversions. These conversion rules apply to earnings classification elements, including standard, supplemental, absence, and time elements.
You are prompted to set conversion rules in the following cases.
Conversion rule type |
When you set it |
---|---|
Periodicity |
When defining an earnings element and have selected the Flat amount or Hours * Rate calculation rule |
Proration |
|
Work Unit |
When defining an earnings element that's subject to proration |
Conversion Rules
This table describes the predefined formula rules.
Rate conversion rule |
What it does |
Here's an example |
---|---|---|
Standard Rate Annualized |
Calculates the annual rate using the input periodicity, and converts the amount to an output periodicity and rate. Uses default values to calculate the annual rate, such as 2080 hours or 260 working days. |
To convert a weekly amount to a semimonthly periodicity, the payroll process:
|
Standard Rate Daily |
Calculates the daily rate using the input periodicity, and converts the amount to an output periodicity and rate. Uses a default value to calculate the daily rate, such as 260 working days a year. |
To convert an annual amount to daily periodicity, the payroll process:
|
Standard Working Hours Rate Annualized |
Uses the employee's standard working hours to convert the monetary value and their working hours to an annual value before calculating the rate. Note:
Don't use this conversion rule for retirees. |
Employee works 40 hours a week with a monthly salary of $1000. ((1000 * 12) / (40.00 * 52) = $5.77 per hour |
Assignment Working Hours Rate Annualized |
Uses the employee's working hours to convert the monetary value and their working hours to an annual value before calculating the rate. Note:
Don't use this conversion rule for retirees. |
Employee works 40 hours a week, with a 37.5 standard working hours a week, and a monthly salary of $1000 USD. ((1000 * 12) / (37.50 * 52) = $6.15 per hour |
Periodic Work Schedule Rate Annualized |
Uses the employee's work schedule for the payroll period for daily and hourly conversions. Note:
Don't use this conversion rule for retirees. |
|
Work Schedule Calculations
For the Periodic Work Schedule Rate Annualized rule, the conversion rule 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.
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Assignment
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Position
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Job
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Department
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Location
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Legal Employer
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Enterprise
Consider these conditions to accurately calculate elements for a payroll period.
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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.
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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.