Rate Conversion Rules

Conversion rules apply to earnings classification elements, including standard, supplemental, absence, and time elements.

Use one of these approaches to specify 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.

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:

1. On the Calculation Value Definitions page, search for and select the time card element.
2. Change the default value for the rate conversion rule from Standard Rate Annualized to Periodic Work Schedule Rate Annualized.

This table describes the predefined conversion or formula rules.

Predefined Conversion or Formula Rules

Conversion Rule	Calculation
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 the default value of 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 person's standard working hours. Calculates the rate. Scenario: The person works 40 hours a week with a monthly salary of 1000 US dollars. Calculation: ((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 person's working hours. Calculates the rate. Scenario: The person works 40 hours a week, with a 37.5 standard working hours a week, and a monthly salary of 1000 US dollars. Calculation: ((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. Uses the person's work schedule for the payroll period for daily and hourly conversions. Calculates the rate. Scenario for a person assigned a monthly payroll: The person has a monthly salary of 1000 US dollars. The formula checks the work schedule details for the month. Daily conversion calculation: 1000 a month / 20 days in the month = 50 per day. For a person who isn’t assigned a payroll: The calculation uses the weekly rate and converts the result to an annual amount. The calculation then divides the annual amount by the number of days or hours in that week, according to the work schedule.

If you chose Other Units for reporting and select Yes for the question ‘Does this element have a default rate definition?’, you must select a predefined Rate Name for effecting the calculations.

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.

• Assignment
• Position
• Job
• Department
• Location
• Legal Employer
• 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, create the work schedule at assignment level.