Date Effective Processing

Date Effective Processing is the means by which an employee’s pay is automatically adjusted during the period in which he/she joins or leaves the organisation.

There is a new field in Payroll Code Maintenance Controls, called React to Critical Dates. The field can have 1 of the following predefined values:

  • No – this means that any payments made to an employee on this payroll code will not be adjusted during the pay period in which the employee starts or leaves. (Note: the field is initially defaulted to No for all payroll codes).
  • Calendar – this means that any payments to any employee on this payroll code will be adjusted to a value calculated by the following formula:
    – original pay for period * number of calendar days of employment in period / total number of calendar days in period.
  • Working – this means that any payments to an employee on this payroll code will be adjusted to a value calculated by the following formula:
    – original pay for period * number of working days of employment in period / total number of working days in period.
  • Fixed – this means that any payments to an employee on this payroll code will be adjusted to a value calculated by the following formula:
    – annual pay * number of working days of employment in period / 260.

 

Notes

  • As part of this change, the payroll calculation process will always recalculate payments made on codes with settings such as Salary / 12. So if you use manual means to part pay employees in their first/last periods, you will not be able to do that by amending the value in their Salary payroll code, but will need to allocate a new code for the purpose.
  • The menu option Automated Adjustments (Starters/Leavers) should now be removed from Payroll, Functions menu as this option is now redundant.