Adjusting Work Days and Average Rate Hours

Follow

Each time an employee is paid,  FlexiTime needs to know both the number of hours and number of days that the pay is for. This information is shown in the Pay History tab when editing an employee.

The number of hours is used to calculate the Average Pay Rate,  which is used to pay the employee when they take Annual Leave.   There are two ways that the hours for rate calculations are determined:

  • If on the Leave tab the annual leave accrual is based on a normal hours per week, then this is what will be used.
  • Otherwise the hours are taken from the pay. These hours may have been entered directly into the pay or into timesheets which feed into the pay.

For more information on these two approaches, see this article.

If this information is incorrect then the average rate calculations will be affected for up to a year after the pay. For example if you accidentally entered 8 as the normal hours per week instead of 40, or if an employee's work pattern changed from 5 days a week to 4 but their details were not updated.

You can check this by running the Leave History Report for the employee and checking the Average Pay Rate column, and by comparing the Average Rate Hours to the Pay Hours.

The number of days is used to calculate the Average Daily Pay Rate, which is used to pay Sick, Public Holiday, Alternate and Bereavement Leave.   There are a number of ways that FlexiTime can determine the employee's days in a pay:

  • using the Days per Week from their employment tab
  • if the employee uses timesheets,  the number of days is derived from the time entries if no Days per Week has been entered for them
  • if the employee does not use timesheets and does not have Days per Week set,  then the payroll administrator will need to include the Work Days when creating the pay

If this information is unavailable or is incorrect, the employee's Average Daily Pay Rate can be distorted. You can check this by running the Leave History Report for the employee and checking the Average Daily Pay column.

If an employee has been paid with either the Days or Hours not correctly set in the pay, you can update their pay history details to correct the calculations. Edit the employee and select the Pay Records tab. Update the Work Days and/or Average Rate Hours columns to the correct values and click Save.

 

You won't notice the effects of this change until after you run another pay for the employee, as the Work Days and Average Rate Hours for the previous pay is used to calculate the average rates in the next pay.

We recommend adding a Note to the employee record (Personal > Notes) if you change anything regarding the leave accrual and rate calculations,  to ensure that you have an audit trial of changes made. 

If you are changing the hours for annual leave rates, you'll probably also need to recalculate the annual leave due and accrued balances. For more information on this see this article.

 

Have more questions? Submit a request

Comments

Powered by Zendesk