HRplus Time >> Schedules >> Payment Rules
Payment Rules
The Payment Rules defined here determine how Straight Time and Overtime is paid for each pay group. Payment rules can also be defined where overtime is calculated by the day or by the week where a set number of hours must be worked before overtime is applied.
N.B. Prior to creating any payment rules, all earning codes must be created for straight time and overtime for both current and retro payments. See the link below for details:
How to create an earning code?
There are three steps to creating a payment rule as follows:
Create a New Payment Rule
Setup the Payment Rule Details
Company: Select the company for which you are creating the payment rule.
Payment Rule Code: Enter the Payment Rule code as an acronym of the description.
Payment Rule Description: Enter the Payment Rule Description.
Basic Hours in Week: Enter the basic number of hours that make up the week. E.g. 40
Calculate Overtime: Select either by week, by day, by day then week, by fortnight, by day then fortnight.
Call Out: Select from the drop down list, the respective earning type under which the employee will be paid if they are called out for their shift.
Current:
- In the Straight Time field, select the respective earning code under which Straight Time is to be paid for approved timesheets where the dates align with the cycle in which they are being paid. Note that this code must be different from the earning code under which the Basic or Regular salary is paid.
- In the Overtime 1 to 4 fields, select the respective earning code under which Overtime Time is to be paid for approved timesheets dated in the cycle to which they belong. This defines the overtime rate for up to four levels.
Retro:
- In the Straight Time field, select the respective earning code under which Retroactive Straight Time is to be paid for approved timesheets dated prior to the cycle in which they are being paid. Note that this code must be different from the earning code under which the Basic or Regular Retroactive salary is paid.
- In the Overtime 1 to 4 fields, select the respective earning code under which Retroactive Overtime Time is to be paid for approved timesheets dated prior to the cycle in which they are being paid. This defines the overtime rate for up to four levels.
Save the record and define the overtime hours in the next tab.
Setup Overtime Hours -Overtime by the Day Example
If Overtime is calculated by the day, then enter the overtime hours for Sunday to Saturday and Public Holidays as shown in the example above.
Basic Rate for the First Hrs: Enter the number of hours which are paid at the basic rate/ straight time rate which was flagged in the previous screen. e.g. 8, 9, etc.
OT Rate 1: Enter the hours after basic from which OT Rate 1 will be applied. e.g. from 8-12, 9-13, etc.
OT Rate 2: Enter the hours after OT Rate 1 from which OT Rate 2 will be applied. e.g. from 7.5-11.5, 8-12, 9-13, etc.
OT Rate 3: Enter the hours after OT Rate 2 from which OT Rate 3 will be applied. e.g. 12-16, 12-24, etc. If there is no rate to be applied after OT Rate 3, then all hours can be accounted for in the example of 12-24 hours.
OT Rate 4: Enter the hours after OT Rate 3 from which OT Rate 4 will be applied. e.g. 16-24, 24.
Save the record and repeat to enter additional payment rules.
When defining the Overtime Hours for any one day, ALL overtime levels must be completed and no fields must be left blank.
Setup Overtime Hours - Overtime by the Week Example
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