Actual Time Worked and Dynamic Rates (NZ.)

Overview

When Dynamic Rate is set as the Rate Calculation Method for a leave category, you will need to select which Dynamic Rate calculation to apply, and whether an employee’s Full Time Week or Actual Time Worked is used in the calculation. 

Full Time Week

The Full Time Week for an employee is set in Users > Employees > select employee > Employment > Full Time Week. This value can be used in the calculation of the rate, depending on which Dynamic Rate has been chosen.

You can confirm the number of hours or days associated with the selected Full Time Week in Config > Payroll > Master Timesheets.

Actual Time Worked in Days

The Actual Time Worked for a rate calculation is determined as the number of Worked Days for an employee within a specified period. 

A day is considered as ‘worked’ if one or more of the Pay Items that have been defined as Time Worked has been paid to the employee

For example, an employee has the following gross earnings and days worked:

• Gross pay for the last 52 weeks = $14512
• Days Worked in the last 52 weeks = 212 days
• Gross pay for the last 4 weeks = $1792
• Days worked in the last 4 weeks = 20 days

If Average Weekly Pay (AWP) is selected as the Dynamic Rate, the rate will calculate as $14512 / 212 days, or $68.45 per day.

If Ordinary Weekly Pay (OWP) is selected, the rate will calculate as $1792 / 20 days or $89.60 per day.

When an employee takes leave, the Leave Pay item will show in Process Payroll. Partial days of leave will also appear, with the relevant amount calculated. For example, in the screenshot below, an employee is taking 0.5 days and the Dynamic Rate has been set to ‘Greater of AWP or OWP’.

Actual Time Worked in Hours

The Actual Time Worked for a rate calculation is determined as the number of hours worked by an employee within a specified period. 

Hours are considered worked if a pay item that has been defined as Time Worked has been paid to the employee.

For example, an employee has the following gross earnings and hours worked:

• Gross pay for the last 52 weeks = $14512
• Hours worked in the last 52 weeks = 1120 hours
• Gross pay for the last 4 weeks = $1792
• Hours worked in the last 4 weeks = 160 hours

If Average Weekly Pay (AWP) has been selected, the rate will calculate as $14512 / 1120 hours, or $12.95 per hour.

If Ordinary Weekly Pay (OWP) has been selected, the rate will calculate as $1792 / 160 hours, or $11.20 per hour. 

When an employee takes leave, the Leave Pay Item will show in Process Payroll. For example, if an employee takes 4 hours of Annual Leave, and the Dynamic Rate setting is ‘Greater of AWP or OWP’, we would see the following: