Description
New options have been added for configuring leave rate types that pay leave based on payees' average earnings over a period (i.e. have a rate type of Average Rate).
Average rate leave rate types require a start day that defines the point from which the system will count back when calculating an average rate of pay over a given period. Two new start day options are now available, as described in the table below.
Start Day | Description |
Week Before 1st Day of Leave | This will count the number of weeks back from the pay period end date prior to the start of a leave request. |
Prior Week End | This will count the number of weeks back from the pay period end date prior to the current pay period. |
If either of these two new start day options are selected, you must specify the number of weeks that the average rate calculation will look back on. It is also possible to configure the average rate calculation to be based on only those weeks where a payee actually worked so that non-working weeks do not skew the average rate calculation to a lower amount.
For example, in the screenshot below the average rate has been configured to refer back on 52 weeks, counting back from the week before the first day of leave, and to only include weeks in the 52 week count where there has been time paid against the pay code of Normal.
Benefits
This enhancement provides greater flexibility in how an average rate can be calculated for the purposes of paying leave at a payee’s average pay rate over a specified period.
For example, by being able to configure the average calculation to reference only those weeks where the payee worked, earnings can be evened out to compensate for variations in the work patterns of casual workers.
Configuration
To use the new start day options for average rate leave you can either edit an existing leave rate type that applies an average pay rate or you can configure a new leave rate type.
If you want to apply either of the two new start day options to an existing leave rate type, follow the procedure below:
How to Edit an Existing Leave Rate Type | ||
Navigate to Leave > Maintenance > Rate Type. The Rate Type Maintenance screen is displayed. | ||
2. | In the Search section at the top of the screen, key in or select information about the rate type record that you want to edit and click Search. Alternatively, just click Search without keying or selecting any search criteria if you want to list all existing records. Existing records that match the search criteria are listed in the Results section of the screen. | |
3. | In the Results section of the screen, click the View button next to the record that you want to edit. The record must have type of Average Rate. The Leave Rate Type Entry screen opens. |  |
4. | In the End Date (To) field for the latest validity period that is listed under the Validity section of the screen, select an end date for the validity period. The date you select must be fall on or after the date shown in the Last Pay Period End Date field. Alternatively, if there is no date displayed in the Last Pay Period End Date field or the date falls before the start date of the latest validity period, you can set the new options for the latest existing validity period without adding a new validity period. If this is the case, skip directly to step 6. | |
5. | Click Add +. A new row is added within the Validity section of the screen. The start date of the new validity period defaults to the day after the end date of the previous validity period. | |
6. | Click the Edit button next to the new validity period, if you created a new period, or next to the existing period, if you skipped directly to this step from step 4. The Average Rate dialog box opens. |  |
7. | In the Start Day field, select Week Before 1st Day of Leave or Prior Week End. The No. of Weeks field is enabled. | |
8. | In the No. of Weeks field, key in how many weeks back from the start day the system must reference to calculate the average rate of pay. For example, if the start day is set to Prior Week End and the number of weeks is set to 52, the system will include earnings for 52 weeks up until the end of the pay period before the current pay period. | |
9. | If the number of weeks used in the calculation of the average pay rate is to exclude weeks when a payee did not work, tick Worked Weeks. The Days Worked Pay Codes field grouping is enabled. Skip this step and go directly to step 12 if the average rate calculation is to include all weeks irrespective of whether a payee worked. | |
10. | In the Days Worked Pay Codes grouping, click the Edit button. The Select Pay Codes dialog box opens. | |
11. | Tick the pay codes that are to indicate that a payee worked during a given week and click OK. The Select Pay Codes dialog box closes and the pay codes that you selected are listed in the Days Worked Pay Codes field grouping on the Average Rate dialog box. | |
12. | Click OK. Your changes are applied and the Average Rate dialog box closes. | |
13. | At the top right-hand corner of the Leave Rate Type Entry screen, click Save. The changes you have made are saved and the Leave Rate Type Entry screen closes. | |
To create a new leave rate type that uses the new options, follow the procedure below.
How to Create a New Leave Rate Type | ||
Navigate to Leave > Maintenance > Rate Type. The Rate Type Maintenance screen is displayed. | ||
2. | Click Add +. The Leave Rate Type Entry screen opens. | |
3. | In the Name field, key in a descriptive name for the new leave rate type. | |
4. | In the Type field, select Average Rate. | |
5. | In the Country field, change the default selection if the leave rate type is to apply to a country other than the country that is selected by default. Otherwise, skip this step. | |
6. | Click Add +. A new validity period is added to the Validity section of the screen, with the start date defaulted to today’s date. | |
7. | If the new leave rate type is to be effective from a date other than today’s date, change the date that is selected in the Start Date field. Otherwise, skip this step. | |
8. | Click the Edit button next to the new validity period. The Average Rate dialog box opens. | |
9. | In the Start Day field, select Week Before 1st Day of Leave or Prior Week End. The No. of Weeks field is enabled. | |
10. | If the number of weeks used in the calculation of the average pay rate is to exclude weeks when a payee did not work, tick Worked Weeks. The Days Worked Pay Codes field grouping is enabled. Skip this step and go directly to step 13 if the average rate calculation is to include all weeks irrespective of whether a payee worked. | |
11. | In the Days Worked Pay Codes grouping, click the Edit button. The Select Pay Codes dialog box opens. | |
12. | Tick the pay codes that are to indicate that a payee worked during a given week and click OK. The Select Pay Codes dialog box closes and the pay codes that you selected are listed in the Days Worked Pay Codes field grouping on the Average Rate dialog box. | |
13. | In the Rounding Type and Rounding Value fields, choose whether the result of the average rate calculation is to be rounded or truncated and the number of decimal places to which it is to be rounded or truncated respectively. | |
14. | Click OK. Your changes are applied and the Average Rate dialog box closes. | |
15. | At the top right-hand corner of the Leave Rate Type Entry screen, click Save. The changes you have made are saved and the Leave Rate Type Entry screen closes. | |