Dynamic Rate Substantiation for OWP and AWP (NZ.)

Overview

You can confirm how a rate has been calculated in Payroll > Process Payroll > Process Payroll by clicking the info icon that appears on the item. For a further breakdown, select ‘Click to Open’ to open a popup window that shows the Rate Substantiation page.

There are some variations to the details in the info popup, depending on whether the pay item is from a timesheet or a manually created pay item.

Timesheet Submitted Leave

The info popup for a leave item that has originated in a timesheet will include a summary of the timesheet submission and approval details, the pay item and rate being applied, and a link to the Rates Substantiation page to confirm how the rate has been calculated.

Leave Added Manually in Process Payroll

The info popover for a manually added leave item includes a summary of the item added, the pay item that is being used, the rate and its origin (ie the Rate Calculation Method set on the pay item)) will include a summary of the item that has been added, the pay item and rate being applied, and a link to the Rates Substantiation page to break down how the rate has been calculated.

When a leave item is added manually, the ‘Rates’ you select must be configured as Dynamic Rate in order for the dynamic rate calculation to show. If Dynamic Rate is not selected, the multiplier calculation will show instead. 

Rate Substantiation Page

If a leave category has a Rate Calculation Method of ‘Greater of OWP or AWP’, the Rate Substantiation page will show both calculations in separate tabs. 

If the leave category is set with either OWP or AWP as the Rate Calculation Method, the Rate Substantiation page will only show the selected method in a single tab.

Calculation Summary

The Calculation Summary outlines the Rate Calculation Method and the rate (or rates) that have been calculated by the system.

If ‘Greater of OWP or AWP’ is set as the Rate Calculation Method, the Calculation Summary will also include the Selected Rate, which is the higher of the two calculated rates. 

OWP Tab (Ordinary Weekly Pay) in Hours

The OWP calculation breaks down the per week, per day, and per hour rates, using the following formulas:

• Per week = gross income / 4 * multiplier
• Per day = gross income / (reporting timesheet day count for the period - day count for the period) * multiplier
• Per hour = gross income / (reporting timesheet hours for the period - total hours for the period) * multiplier

The Gross Income value is the total gross income for the four week period, with the Date Range covering the last four weeks prior to the end of the pay cycle before leave being taken. 

For example, if leave is being taken on Wednesday 1 July, and the pay cycle is Monday-Sunday, the Date Range would be 1 June-28 June.

Items Considered in Gross Income

You can view the Items Considered in Gross Income by expanding this section in the OWP tab. This lists all the pay items that have been selected for the dynamic rate in Config > Leave > Dynamic Rates > Individual Pay Items.

Income History

The Income History section shows the income history for pay items considered in the gross income within the specified period. 

Hours worked (Reporting Timesheet)

If a rate is calculated in hours and the Full Time Week is being used, the Hours worked (Reporting Timesheet) section of the OWP tab details the number of hours in the reporting timesheet period. The Master Timesheet is based on the Full Time Week setting for an employee (Users > Employees > select employee > Employment > Full Time Week). 

The table under details the Master Timesheet days in a week, the total hours expected for each day, the number of days within the date range, and the total day hours. 

Hours Worked (Actual Time)

If a rate is calculated in hours and the Actual Time Worked is used, the Hours Worked section will display, with the number of Days Worked within the specified Date Range. 

You will also see a list of the pay items that have been paid within the date range that are considered ‘Work’. These pay items are defined by the items ticked in Config > Leave > Definition of Time Worked.

If there are two items that were paid on the same day, they will be listed on separate rows. 

Days worked (Reporting Timesheet)

If a rate is calculated in days and the Full Time Week is being used, the Days worked (Reporting Timesheet) section summarises the total days within the reporting timesheet period, as well as a table detailing the Expected Hours, Day Count, and Total Day Hours within the period. 

Days Worked (Actual Time)

If a rate is calculated in days and the Actual Time Worked is used, the Days Worked section will display, with the number of Days Worked within the specified Date Range. 

You will also see a list of the pay items that have been paid within the date range that are considered ‘Work’. These pay items are defined by the items ticked in Config > Leave > Definition of Time Worked.

If there are more than one relevant pay item on the same day, they will be listed in the same row. 

Leave Multiplier

The value in the Leave Multiplier section of the OWP tab is pulled from the Multiplier value that has been set in the leave pay item. 

AWP Tab (Average Weekly Pay)

The AWP calculation breaks down the per week, per day, and per hour rates, using the following formulas:

• Per week = gross income / 52 * multiplier
• Per day = gross income / (reporting timesheet day count for the period - day count for the period) * multiplier
• Per hour = gross income / (reporting timesheet hours for the period - total hours for the period) * multiplier

The Gross Income value is the total gross income for the four week period, with the Date Range covering the last 52 weeks prior to the end of the pay cycle before leave being taken. 

For example, if leave is being taken on Wednesday 1 July, and the pay cycle is Monday-Sunday, the Date Range would be 1 July-28 June.

The Gross Income, and Leave Multiplier sections function in the same way for AWP as for OWP. The section between these two will function the same way for AWP as for OWP, and will depend on your Dynamic Rate settings (days/hours and Full Time Week/Actual Time Worked). 

Non-Dynamic Rates or Multiplier substantiation

The system will use the settings configured on the leave pay item to calculate the rate being paid. You can view a summary of these settings in the Breakdown popup window.