BASE HOURLY RATE INCORRECT ON PAY ADVICE

Hi North 

If you have ticked Automatically Adjust Base Hourly or Base Salary details the software will do the required adjustments to make sure the gross wage is the same as the standard pay. To do this it adds up all pay categories except Base Hourly, deducts that figure from the gross amount and then divides that figure by the hours allocated to Base Hourly. This gives the calculated rate.

Example 1:

• employee's Base Hourly rate is $20, gross standard pay is $760
• Automatically Adjust Base Hourly or Base Salary details is not ticked
• Work Cover has a Fixed Hourly rate of $25

As Automatically Adjust Base Hourly or Base Salary details isn't ticked the software doesn't need to keep the gross pay at the standard pay amount. So Base hours are calculated at the Base hourly rate and gross and net wages amount increases.

Example 2:

• the only difference from example 1 is that Automatically Adjust Base Hourly or Base Salary details is ticked

The software needs to keep the gross wages amount at $760, so it deducts the work cover amount from gross wages, $760 - $250 = $510. $510 divided by 28 hours is $18.21 calculated rate.

Example 3:

• Automatically Adjust Base Hourly or Base Salary details is ticked
• I've changed the Work cover Fixed Hourly Rate to $22

   

The calculated rate has changed because $760 - $220 = $540, $540 divided by 28 hours = $19.29 calculated rate. But the gross and net amounts are the same as example two.

How you set up your Work Cover payroll category depends on whether you want the gross wage to stay the standard pay or if the employee is paid extra. If they are being paid extra you can use a Fixed Hourly Rate, just don't have Automatically Adjust Base Hourly or Base Salary details ticked. You don't need to change the standard pay, when you process the pay just manually change the Base Hourly hours.

I hope that clarifies it for you.

Please let me know if you need further help.

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