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Payroll Calculation

Written by Denisa Arjoca
Updated over 2 months ago

When the Payroll Calculation function is run for Payroll and the Premium Labour is to be redirected, the JC/REDIROT parameter helps to determine if only the premium portion of overtime and double time is redirected, or if all overtime and double time wages, hours, and associated burdens are redirected.

For example, here is a PR Transaction:

Reg Hours: 40.00 Reg Rate: $ 50.00 Reg Amount: $ 2,000.00

OT Hours:10.00 OT Rate: $ 50.00 * 1.5 = $ 75.00 OT Amount: $ 750.00

DT Hours: 10.00 DT Rate: $ 50.00 * 2.0 = $ 100.00 DT Amount: $1,000.00

If the JC/REDIROT parameter is set up as PREMIUM, only the premium wage is redirected (standard process). Hours are not redirected, and for our example, it is as follows:

OT Premium = OT Amount - OT Amount / OT Multiplier = $ 750.00 - $ 750.00 / 1.5 = $ 250.00

DT Premium = DT Amount - DT Amount / DT Multiplier = $ 1,000 - $ 1,000 / 2.0 = $ 500.00

Premium Wage = OT Premium + DT Premium = $ 250.00 + $ 500.00 = $ 750.00

If the JC/REDIROT parameter is set up as ALL, absolutely all overtime and double time wages, including associated burdens, allocations, and hours, are redirected, and for our example, it is as follows:

Redirected OT and DT Wages = OT Amount + DT Amount = $ 750.00 + $ 1,000.00 = $ 1,750.00

Redirected OT and DT Hours = OT Hours + DT Hours = 10.00 + 10.00 = 20.00

In this case, the Non Premium Labor, Reimbursable, and Regular part of burdens, allocations, and hours are not redirected.

The Premium Labour burden is the same as the burden in detail. The Payroll Cheque History was previously updated to hold burden detail for regular, overtime, and double time. The burden values calculated for overtime and double time are now redirected along with the hours and wages outlined above.

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