Description

When a pay code is selected to be included in the NMW determination, this would include the pay code’s units and pay. However, if you need to include bonuses, the unit of the bonus should be excluded. This change allows bonus' to be included as part of the NMW pay but excluded from the hours.

Within the pay code set up, pay codes can be configured to indicate if both pay and hours are included in NMW Determination Pay or just the pay value:

• If you wish to only include the pay value and not the hours, then select the tick box ‘Include in NMW Determination Pay’.

• If you wish to include both the pay and the hours to determine NMW, then select the tick box ‘Included in NMW Determination Pay and Hours’.

Pay codes selected as NWM Base Rate are automatically ticked to include in both pay and hours to ensure accurate calculations.

In this scenario, the payee has basic hours and a bonus to be paid.

The basic hours are selected as ' Included in NMW Determination Pay and Hours'

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The bonus hours are selected as ' Included in NMW Determination Pay'

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Both are added to the pay batch:

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When the pay batch reaches the National Minimum Wage stage:

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The calculation is therefore £450 ( basic hours ) + £100 (bonus) / 30 hours (basic hours) as the pay is included but the hours are not.

Benefits

Allows payments such a bonus' to be included in NMW pay calculation without including the hours used to generate the payment.

Tick box allows the pay codes to be changed from included or excluded from the NMW pay calculation.

Configuration

To select the option within the pay code.

Below table shows how to configure the different scenarios:

Steps:

Steps:
1.	Within Rates & Rules - Maintenance - Pay Codes
2.	If you already have created the paycode you wish to change the configuration - click Edit If you are creating a new pay code - Click Add
3.	This will open another page for the pay code. Within this screen you can select the relevant tick box.	Open