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 pay item line. For a further breakdown, select ‘Click to Open’ to open a popup window that shows the Rate Substantiation page.
There is some variation in the details shown when you click the info icon, depending on whether the pay item originated in a timesheet or has been manually created.
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 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). You'll also see a link to the Rates Substantiation page to break down how the rate has been calculated.
When a pay 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 been configured with the Rate Calculation Method of ‘Greater of RDP or ADP’ or ‘RDP’, the Rate Substantiation page will show both the RDP and ADP calculations in separate tabs.
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 RDP or ADP’ is configured, the system will apply the higher of the two rates. If ‘RDP’ is configured, the system will apply the RDP rate, or will default to the ADP rate if an RDP rate is not available.
RDP Tab (Relevant Daily Pay)
The RDP calculation uses the formula of RDP Rate / 1 * multiplier.
To confirm that RDP is to be used, the system will look at the income amounts within the last 8 weeks for the same day. For example, if leave is taken on a Wednesday, the RDP calculation will look at the other Wednesdays that have fallen within the 8 weeks prior to the leave being taken.
The Relevant Income section summarises the criteria being used for the RDP calculation. For RDP to apply:
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There must be at least one historical gross payment that can be used within the Date Range
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All historical values within the date range must match, with an error margin of +/- 0.0100
In the previous example, the system would look at the last 8 Wednesdays’ gross payments and would need to find at least one. As there were 6 values matching, RDP is used.
If the conditions are not met to find RDP, the ADP amount is used instead.
The Relevant Income section includes the following criteria:
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Day of Week that the leave was taken
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Date Range covering the last 8 weeks, prior to the end of the pay cycle before leave is being taken
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Allowed Tolerance, set to 0.001. This is the margin of difference for a value to be considered as equal and cannot be changed
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Minimum Days History Required, set to 1. This is the number of days matching the Day of Week in the last 8 weeks that must be equal to determine RDP
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Minimum Matching Value Required, set to ‘All values must match’. This is the value required for the system to determine that RDP should apply.
Relevant Income Found in the Last 8 Weeks
The Relevant Income Found in the Last 8 Weeks tabulates the dataset being used to assess whether RDP applies for a leave request.
It includes a separate line entry for each matching Day within the 8 week period, and the income details associated with that day.
Items Considered in Calculation
This section can be expanded to show the pay items that have been set for RDP dynamic rates in Config > Leave > Dynamic Rates > Individual Pay Items.
No division required for relevant daily pay
The ‘No division required for relevant daily pay’ section is always set to 1 for RDP.
Multiplier
The Multiplier that appears will depend on where the leave has been added.
The multiplier for leave added in a timesheet will be pulled from the value entered in Config > Leave > Leave Categories > Pay Item.
The multiplier for leave that is manually added in Process Payroll will be the Pay Item > Multiplier value set by the user.
ADP Tab (Average Daily Pay)
The ADP calculation uses the formula of gross income / days worked x leave pay item multiplier.
ADP is used when the system identifies that the conditions for calculating RDP cannot be met.
The Gross Income section will show the total gross income within the specified Date Range. The Date Range defaults to the last 52 weeks, prior to the end of the pay cycle before leave is being taken.
Items Considered in Gross Income
Expanding this section will show a list of the pay items that are set for ADP dynamic rates in Config > Leave > Dynamic Rates.
Income History
The Income History outlines the historical pays within the past 52 weeks that have been used as part of the ADP calculation. Only pay items considered in gross income for the period will be included.
Days Worked
The Days Worked value is the number of total days worked within the specified 52 week period, from the pay cycle prior to leave being taken.
The subsections for Items Considered ‘Worked’ and Days Considered as Work can be expanded to show the pay items and days that have been included in the calculation, respectively. These pay items are defined by the items ticked in Config > Leave > Definition of Time Worked.
For a day to be considered as work, the income for that period must include at least one item considered ‘worked’.
Multiplier
The Multiplier that appears will depend on where the leave has been added.
The multiplier for leave added in a timesheet will be pulled from the value entered in Config > Leave > Leave Categories > Pay Item.
The multiplier for leave that is manually added in Process Payroll will be the Pay Item > Multiplier value set by the user.
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