Monthly Calculated Salary

The Monthly Calculated Salary feature provides the ability to compute an employee’s monthly calculated salary as follows:
Monthly Calculated Salary = Base Salary + Base Rate Bonuses + Other Base Rate Bonuses

An employee’s Base Salary event is determined by the Base Pay Type field on the Employment Status (EMPS) page. If the employee is table-driven, then the Base Salary amount is derived from the Pay Policy Rate (PPRT) table using the Base Salary Event, the employee’s corresponding Pay Policy, and the SPAR defined keys.  If the employee is not table-driven, then the Base Salary amount is determined from the employee’s pay parameters setup on the Employee Status Maintenance (ESMT) transaction.

All of the pay parameters that are not the employee’s Base Salary Event are considered Bonuses.  Base Rate and Other Base Rate Bonuses are determined by the setup on the Pay and Leave Events (EVNT) page. The Pay Information section includes the Salary Event field which has valid values of <blank>, Base Salary Event, and Other Base Salary Event. If a pay parameter event is setup as a Base Salary Event, then that pay event is a Base Rate Bonus. If a pay parameter event is setup as an Other Base Salary Event, then that pay event is an Other Base Rate Bonus. All pay parameter events that have a <blank> Salary Event value is considered Non-Base Rate Bonuses and is not included in the Monthly Calculated Salary.

If the Salary Event field is populated with either Base Salary Event, or Other Base Salary Event, the EVNT reference page fields Salary Display 1 and Salary Display 2 are required.  Salary Display 1 and Salary Display 2 fields must be populated with QSAL or QVER. This ensures that there is no disconnection between the Monthly Calculated Salary and the components of the Employee Salary inquiry (QSAL) and Employment Verification (QVER) inquiry pages. If the Salary Event field is populated with either Base Salary Event, or Other Base Salary Event and the Salary Display 1 and Salary Display 2 fields are not populated with QSAL or QVER, an error message is displayed.

Both Base Rate and Other Base Rate Bonuses may be expressed as flat dollar amounts or percentages.  All bonuses are added to the Monthly Calculated Salary amount according to the pay event’s Pay Acceptance Priority Number.  As a result, the administrator should set up each pay event’s Pay Acceptance Priority Number to reflect the correct processing order. When determining the Pay Acceptance Priority Number for a bonus event, all Base Rate Bonuses should be processed first, followed by the Other Base Rate Bonuses. Bonuses that are percentage-based should be processed prior to flat amount bonuses. The Pay Acceptance Priority Number for bonus pay events should reflect the following order: 

1. Base Rate Percentage Bonus

2. Base Rate Flat Dollar Bonus

3. Other Base Rate Percentage Bonus

4. Other Base Rate Flat Dollar Bonus

Percentage based bonus amounts are compounded based on the running Monthly Calculated Salary total. For example, an employee has a monthly base salary of $4000, a 10% base rate bonus, a $500 base rate bonus, and a 5% other base rate bonus. The Monthly Calculated Salary for the employee is equal to $4000 + $400 (10% base rate bonus) + $500 (flat base rate bonus) + $245 (5% other base rate bonus). The 10% base rate bonus is compounded using the base salary of $4000 while the 5% other base rate bonus is compounded using the new running Monthly Calculated Salary total of $4900 ($4000 + 400 + 500).
When determining an employee’s Monthly Calculated Salary, the system totals all relevant amounts (Base Salary + Base Rate Bonuses + Other Base Rate Bonuses) as per the employee’s Payment Frequency ID as defined on the Pay Class page. For example, if an employee has a Payment Frequency ID of Semi-monthly, then the system calculates a Semi-monthly Calculated Salary total. This total amount is then converted to a monthly amount, resulting in the employee’s Monthly Calculated Salary.

When the Use Calculated Salary Rate field is selected, then the event’s pay rate is equal to the Calculated Salary Rate derived from the employee’s Monthly Calculated Salary. The functionality enables Advantage HRM to prorate pay when an employee is entitled to only part of their Monthly Calculated Salary.  
All pay events with the Use Calculated Salary Rate field selected requires a Pay Policy Event Type (PPET) reference page entry as per baseline functionality; however, these pay events do not require a Pay Policy Rate (PPRT) reference page entry, except for Base Salary pay events. If the Use Calculated Salary Rate field is not selected, then that event uses normal pay processing logic to determine the pay rate.  
The Monthly Calculated Salary is displayed at the employee appointment level on the QSAL and QVER inquiry pages through the Monthly Calculated Salary field.  Since both inquiries search based on a Selection Date, the Monthly Calculated Salary displayed includes all relevant pay parameters with an Effective Date on or before the entered Selection Date. The Monthly Calculated Salary is displayed in full regardless of what is chosen in the ‘Include Events’ field on QSAL or QVER inquiry pages.

Time-to-Gross (TTG), Gross-to-Net (GTN), and Retroactive Pay Processing calculates an employee’s Monthly Calculated Salary based on the effective date of the bonus, for both dollar and percentage-based bonuses.  If a bonus is added mid pay period as part of an employee’s assignment change, GTN calculates the employee’s Monthly Calculated Salary for each assignment timeslice and factor in the effective date of the bonus. For example, in the 12/1 - 12/15 pay period if an employee’s assignment timeslice and dollar based bonus is added on 12/10, the Monthly Calculated Salary for the first assignment (12/1-12/9) does not include the dollar based bonus, and the Monthly Calculated Salary for the second assignment within the pay period (12/10-12/15) includes the dollar based bonus. Similarly, TTG calculates the employee’s Monthly Calculated Salary using the effective date of the bonus. For example, the Monthly Calculated Salary on a timesheet entry with Event Date 12/8 does not include the dollar-based bonus, and the Monthly Calculated Salary on a timesheet with Event Date 12/12 includes the dollar-based bonus.