WageEasy has the capacity to recognise Ordinary Worked Hours and calculate any loadings required for alternative hours worked. This ability comes from using the entered Time Sheet hours and automatically referencing them against the parameters set down by the Employee’s assigned Award.
Each employee is attached to a Base Pay Rate in the Employee Details, Employment, Dept/Pay Rate. This Base Pay Rate is the dollar figure applied and paid to each 'normal' hour. It is also the source used in the calculation towards additional payments for alternative hours, like Overtime, Shift loadings etc. By using a Base Pay Rate, WageEasy ensures each worked hour is paid to the Employee at the correct $ amount.
Use the following formulas for converting Period Wages to (hourly) Base Pay Rates:
To convert a Standard Weekly salary/wage, i.e. $1,520 to an (hourly) Base Pay Rate; 38 hrs per week
Standard Weekly Gross $1,520 per week / 38 = $40 Base Rate
To convert a Standard Fortnightly salary/wage, i.e. $3,040 to an (hourly) Base Pay Rate; 38 hrs per week
Standard Fortnightly Salary $3,040 per fortnight / 76 = $40 Base Rate
To convert a Monthly Salary of $8,233.50 to an (hourly) Base Pay Rate; 38 hrs per week
Step 1
To convert a monthly salary, first calculate the 'monthly' hours:
Standard Hours in a Week 38 x 52 Weeks in a year = 1976 hrs
Divide the Standard Hours in a Year 1976 / 12 (months in a year) = 164.67 (rounded)
Then, calculate the (hourly) Base Pay Rate:
Step 2
To convert a Monthly salary/wage, $8233.50 to an (hourly) Base Pay Rate;
Standard Monthly Salary $8,233.50 / 164.67 = $50 Base Rate
To convert an Annual Salary of $98,802.00 to an (hourly) Base Pay Rate;
Standard Hours in a Week 38 x 52 Weeks in a year = 1976 Total Standard Hours in a Year.
Standard Annual Salary $98,802.00 / 1976hrs in a Year = $50.00 Base Rate
Annual Salary including Super $108,682.20
When you are given an annual salary and it includes super, determine what the salary LESS super is:
Annual Salary including super $108,682.20 / .12 = $90,568.50 Annual Salary (excluding super of 12.0%)
Once you have removed the super component you can work back to the hourly rate with the above instructions.
The same principal applies when dealing with Loaded Base Rates that already have the loadings included.
E.g. Casual Employee Rate with 25% Loading included = $30.00
Loaded Base Rate $30.00 / 1.25 = $24.00 Base Pay Rate
Note: The award will add the loading for each day and therefore the employee’s Base Pay Rate is entered without adding loadings.
When creating the Company data base and downloading the applicable Association including Base Pay Rates, these Base Pay Rates can be viewed in Setup, Base Pay Rates.
Please check this list to ensure each Employee can be attached to a relevant Base Pay Rate. If you are Importing Employees or manually entering them through the New Employee Wizard, please be aware that the Base Pay Rate is a mandatory field that must be populated in the process. If there are no Base Pay Rates available, you will be unable to continue with adding the new employee.
You can Add or Edit Base Pay Rates at any stage.
Set Up, Base Pay Rates, Add.
Note: If you Edit a pay rate, all employees on that pay rate will now receive the new amount as their Base Pay Rate.
Enter a meaningful Description and the Base Pay Rate Amount, OK,
Close to save.
In Employee Details, Select the Employee, Employment, Dept/Pay Rate, highlight the Base Pay Rate line you would like to change, Edit. On the Edit Department Details screen, select a new Base Pay Rate from the Drop Down.
Note: Please be aware that an Employee can have numerous pay rates in their file. However, it is the Default rate that will be automatically applied to the Employee’s hours for calculation unless otherwise specified.