Help SitePayrollPayrollBusiness RulesHow do I setup the salary change flags?

How do I setup the salary change flags?

Personnel>>Personnel>>Transactions>>Salary Change Flags

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Salary Change Flags

Salary Change Flags allow us to define the Payment Parameters for Salaried and Non-Salaried employees, including how pay is earned, whether in dollars or units, and whether pay is defined as a Salary or a Rate.  Additionally, this screen allows us to indicate the pro-ration option that best suits your company's payment rules.

To maintain the integrity of the data, it is advised that all salary changes be done via the Employee transaction >> Salary Changes screen. When this is entered, the system can generate, for processing in the payroll, a cycle change with the new salary in the pay cycle based on the Effective Date.

To enable the automatic generation of salary changes to the payroll, the salary change flags setup is one of the critical items which must be enabled.

Additionally, the Regular Earnings must be entered in the system interface codes. (System Configurations>>Company Parameters>>System Interface Codes).

  1. Set up Salary Change Flags (Transactions>>Salary Change Flags).
  2. Enter the employee salary via Salary Changes (Transactions>>Salary Changes).

Note that these flags are normally set at the start of your project with HRplus and with the guidance of an Implementation Specialist. Should you need assistance configuring the salary change flags for a pay group, then please contact the help desk for assistance.

Enter a New Salary Change Flag

Enter the Details for the Salary Change Flag

Pay Group: Select the Pay Group for which you are setting up the salary change flag

Salaried Employees

Use for Salaried Employees: If this rule is to be applied to salaried employees within the pay group, then select ''Yes''. Otherwise, select ''No''.  If ''No'' is selected, you do not need to fill the other fields under the Salaried Employee heading. This rule will automatically not apply to employees flagged as 'salaried' on their profile.

  • Salaried employees are those who are hired with a salary or a regular payment for the pay period. This basic payment is not changed based on hours worked. E.g. Monthly salaried, Bi-monthly salaried, etc.
  • When an employee's salary file is first uploaded to HRplus, a flag indicates whether the employee is salaried or not. This data is then saved to the employee's profile.

Salaried Employees Paid In : 

  1. Dollars: Flag/Select this option if the salaried employee is paid based on days worked and any deductions are based on leave days taken.
  2. Units: Flag/Select this option if the salaried employee:
    1. Must have their hours worked appearing on the payslip
    2. Or must have their pay for each cycle adjusted based on days/hours for which they are not paid.
      • E.g.In a regular monthly cycle, these employees will have their regular hours appearing as 173.33 on the payslip. If there is a cycle where they missed hours that are not to be paid, then line items will be entered in the payroll to indicate hours for paid work and hours being deducted for missed work.

Type of Cycle Changes for Salaried Employees:

  1. Salary Change: Flag this option if the employees are to be paid based on a salary for the period. This is normally selected when "Dollars'' is flagged in the previous field.
  2. Rate Change: Flag this option if the employees are to be paid based on hours worked for the period. This is normally selected when "Unit'' is flagged in the previous field.

Generate a 'REG Cycle Change for Salaried Employees: If the employee is paid based on a basic earnings code used as the ''REG'' code, flag 'Yes'', otherwise flag ''No''.

Non-Salaried Employees

Use for Non-Salaried Employees: If this rule is to be applied to salaried employees within the pay group, then select ''Yes''. Otherwise, select ''No''.  If ''No'' is selected, you do not need to fill the other fields under the Salaried Employee heading. This rule will automatically not apply to employees flagged as 'salaried' on their profile.

  • Non-salaried employees are those who are hired with a salary or hourly rate which is based on hours worked.

Type of Cycle Change for Non-Salaried Employee:

  • If a non-salaried employee is hired with a wage or dollar amount as their quoted pay but they are paid by the hour, then flag '' Salary Change''.
  • If a non-salaried employee is hired with a rate by the hour as their quoted pay, then flag '' Rate Change''.

Prorate

Pro-ration refers to the process of calculating or adjusting a payment or benefit based on the number of working days within a given period. It is commonly used when an employee's compensation or entitlement needs to be adjusted to account for partial or reduced work weeks. 

Calendar Days: Flag this option if the calculation of the pro-rated value of the employee's pay in the cycle is based on the actual number of days within a given period, regardless of whether those days fall on weekdays or weekends. This method takes into account every day in the calculation, including weekends and holidays. Example: A monthly salary of $3,500 for an employee who started work on January 16, 2023, would be prorated to $1,806 based on the number of calendar days worked in January (assuming 31 days in the month).

Week Days: Flag this option if the calculation of the pro-rated value of the employee's pay in the cycle is based on a standard work week. E.g. if a full-time work week is 40 hours or 5 days from Monday to Friday (excluding holidays and weekends). Example: A monthly salary of $4,200 for an employee who started work on January 16th, 2023, would be prorated to $2,290 based on the number of weekdays worked in January (assuming 22 weekdays in the month).

Do Not Prorate: Flag this option if you do not wish to prorate and the full amount of the employee's pay is calculated in the cycle. If an employer decides not to prorate, it means that they choose not to adjust or calculate payments, benefits, or entitlements based on a partial or reduced work period. Instead, they provide the full amount or benefit regardless of the number of days worked or the duration of employment within a given period.

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