How to Create a Pay Oncost Rate

Name
Name that identifies this oncost rate. This must be unique for the hierarchy level/hierarchy value combination.

Start Date

Date on which this oncost rate becomes valid. Click  and use the calendar control to select a valid date. Note that this date cannot overlap with that of another oncost rate that exists for the same level/hierarchy value combination.

End Date

Date after which this oncost rate will no longer be valid. Click  and use the calendar control to select a valid date. Note that this date cannot overlap with that of another oncost rate that exists for the same level/hierarchy value combination. Alternatively, keep this field blank if this oncost rate is to remain valid indefinitely.

Hierarchy Level
Agreement hierarchy level to which the oncost rate belongs. This defaults to Country. To assign the oncost rate to another level of the hierarchy, select the appropriate hierarchy level in this field.

Hierarchy Value

Agreement hierarchy value to which the oncost rate belongs. For example, if the rate is assigned to the Country level of the agreement hierarchy, the hierarchy value defines the country to which the rate applies. Click  to display a dialog box that allows you to search for the relevant hierarchy value.

Hierarchy Group

Hierarchy group to which the pay oncost rate applies. When paying an item, the system will search for and apply an oncost rate that matches based on a combination of hierarchy level, hierarchy value and hierarchy group. If a matching oncost rate cannot be found, the system will search for an oncost rate with a matching hierarchy level and hierarchy value only.

It is not mandatory to assign an oncost rate to a hierarchy group and you can only assign an oncost rate to a hierarchy group if hierarchy group functionality is enabled in Agency Portal > Maintenance> Portal Maintenance > Country Settings > Hierarchy Group.

Hierarchy group functionality can be labelled to suit the terminology required by your business and the country to which it applies. This can be configured in Maintenance> Hierarchy > Country > Hierarchy Group.

Use Supplementary Rates for Oncost Calculation

If ticked, the supplementary rates method of oncost calculation will be used when this oncost rate is used in an oncost calculation. Where this is applicable, the pay rate of a supplementary pay code will be used in the oncost calculation instead of the pay rate of the pay code that was actually paid.

The supplementary rates oncost calculation only applies where all of the following conditions are met:

- the Use Supplementary Rates for Oncost Calculation option is enabled for the oncost rate that is used in the oncost calculation

- the Use Supplementary Rates for Oncost Calculation option is enabled in the agreement or standard rates header to which a pay item is linked

- the pay code that was paid is linked to a supplementary pay code on the corresponding timesheet end date and that supplementary pay code exists in the rates matrix for the corresponding job order.

For more information about supplementary pay codes, see Pay Code Maintenance.

Exempt

When ticked, indicates that this oncost rate is exempt from being applied by the agreement interpretation process. When the oncost rate is made exempt, the oncost will not be applied by the pay interpretation process even if it is the most applicable oncost rate within the agreement hierarchy. Rates and Rules will instead apply the next most applicable oncost rate that can be found within the agreement hierarchy.

This field is unticked by default and therefore the oncost rate is not exempted by default. Note that when this option is enabled (ticked), the value in the Rate field is cleared, any links in the Linked Oncost Header field are cleared and both of these fields are unavailable.

Rate Type

Determines how the oncost rate is calculated. The following options are available:

- Percentage Based: the oncost rate is calculated as a percentage of the pay rate that is added to the gross wage amount.

- Amount Based: the oncost is a fixed monetary amount.

Rate (%)

The rate that this oncost rate applies, defined as a percentage of the pay rate, that this oncost rate adds on top of the gross wage amount. Tis field is available only if the rate type that applies to the oncost rate is Percentage Based.

Rate ($)

The fixed oncost rate that this oncost rate applies. This field is available only if the rate type that applies to the oncost rate is Amount Based.

Export Code

Code that maps this oncost rate to an oncost in an external system. This is used when exporting oncosts to a third-party finance system.

Linked Oncost Header

Lists all other pay oncost headers to which this oncost rate can be linked. For example, if this oncost represents workers' compensation insurance and this oncost is calculated based on earnings inclusive of superannuation, where superannuation is an oncost in itself, this oncost can be linked to the superannuation oncost.

To link this oncost rate to another oncost header, click the relevant oncost header name(s) so that a tick is displayed next to the relevant oncost headers.

This field is unavailable if the rate type that applies to the oncost rate is Dollar Based.