Salary Related Payments

The Review Salary Related Payments function will increase the value of specified Pay Elements following a backdated salary increase.

Note - when processed from the Company page, the Salary Related Payments function must be processed BEFORE the Prepare stage of the Payroll process. From 2021R2 release, Salary Related Payments may also be run from Payroll between Pay Run drafts.

Salary Related Payments Set Up

The update is applied to Overtime and to Pay Elements where 'Pay vs salary rate' is set to true - the default value is set on the Financial Control record, then carries through to each Overtime and Pay Element record:

Processing Salary Related Payments - from Company or Contract Terms

The Salary Related Payments routine is processed from the relevant Contract Terms record.

From the Company App click on the Contract Terms tab:

There are links to reports on the page that will highlight the compensation records that have been changed since the last Pay Run and also the records (where 'Pay vs salary rate' is set to true) that will be updated as a result of the backdated compensation change.

View Compensation Changes Report

Click on the View Compensation changes link (right click to open in a new tab):

The FTE salary % Increase is based on the ratio of new Compensation salary against the old Compensation salary.

E.g. Halfdan Quebec's previous salary was £5000 and new salary £5500. £5500/£5000 X 100 = 110%. This percentage will then be applied to each Pay Element where 'Pay v salary rate' equals true (back to the effective date of the new Compensation record).

View Related Changes - Overtime

Click on the Overtime link on the 'Review and create salary related payments' screen to see all overtime records that are impacted by the backdated salary change. As above, only Pay Elements where 'Pay vs salary rate' will be considered.

In the above example the original overtime rate was £6.24 and associated pay amount £31.19. When the Salary Related payments function is processed the pay amount will be multiplied by 1.666667 (166.6667%). The record is flagged as required a rate change to be applied.

View Related Changes - One-Off Pay Elements

Click on the One-off pay element link to see all one-off pay Elements that are impacted by the backdated salary change. Only elements where 'Pay vs salary rate' is set to true against the Financial Control record will be shown.

The existing value i.e. pre-increase is shown on this report.

View Related Changes - Regular Pay Elements

Click on the Regular pay element link to see all regular pay elements that are impacted by the backdated salary change. Only elements where 'Pay vs salary rate' is set to true against the Financial Control record will be shown.

New Records Created

Results of running Salary related payments function:

Time record for Bjorn November:

The original Time record with rate £6.24 has been cancelled and a new record with rate £10.40 created.

The calculation is original rate £6.24 x 166.6667% = £10.40 (where percentage is as per View Compensation changes report above).

Where the effective date of the backdated salary increase pre-dates when the salary related elements that are impacted were paid, the existing records will be updated with the new value i.e. a new record will not be created. The Payroll calculation will then reverse what was previously paid and pay instead the new value based on the salary increase. If the effective date of the backdated salary increase us after the start date of the affected pay elements, a new record will be created from the date of the salary change.

Finally, the Pay Run should be processed to calculate any updates the Salary Related Payments function made to employee pay records.

Processing Salary Related Payments - from the Pay Run

From the Pay Run, click Salary Related Payments. Follow the process steps as above - this will support Employees on this Pay Run.

Related Videos

Processing Salary Related Payments

Note: Salary related payments are not currently available for Timesheet payments