What are Calculation Rules?

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What are Calculation Rules?

Calculation rules determine the way the system will automatically calculate transactions, such as annual leave, to make sure your employees are being paid correctly.

Calculation rules that have been developed so far

Australian and New Zealand calculations

Calculation rule

What does the calculation rule do?

Fixed Value

Passes the value directly onto the result

Hourly Pay Rate

Calculates the hourly pay rate for an employee

In Lieu of Notice

Calculates the payment for the employee for the number of weeks paid in lieu of notice

Leave Reversal

Calculates the leave reversal amount for an employee

Net Pay

Calculates the net pay by specifying the sequence of all payroll transaction types and then the maths to apply to the net pay for each pay run

Non Paid

Allows a user to enter a non-paid calculation

Percentage

Calculates the percentage of deductions

Rate Code

Determines the value from the pay rate record

Salary

Calculates the actual gross salary value for the employee's pay frequency. This calculation doesn't recognise leave taken in the month nor partial periods within the month.

Salary Reversal

Calculates the reversed salary or hourly rate for reversed leave

Unpaid Leave

Allows the user to select the unpaid leave rule

Australian-only calculations

Calculation rule

What does the calculation rule do?

AU Annual/Long Service Leave on termination

Calculates the employee's unused annual/long service leave payment on termination

AU Employee Super Contribution

Calculates the Employee Contribution rate for Australian employees

AU Leave Pay

Calculates Australian leave pay

AU Protected Net Earnings

Calculates mandatory after tax deductions so employees still end up with the protected net earnings

AU Public Holiday Not Worked

Calculates the payment for public holiday where employee has worked

AU Public Holiday Worked

Calculates the payment for public holiday where employee has not worked

AU SGC

Calculates the compulsory superannuation guarantee contribution for Australian employees

AU Tax

Calculates PAYG (Pay As You Go), SFSS (Student Financial Supplement Scheme), and HELP (Higher Education Loan Program)

New Zealand-only calculations

Calculation rule

What does the calculation rule do?

NZ ACC Earners Levy

Calculates NZ ACC (Accident Compensation Corporation) Earners Levy

NZ ADP Days

Automatically calculates ADP (Average Daily Pay) days for each pay cycle

NZ Annual Holiday Pay

Calculates the annual holiday pay of an employee

NZ BAPS Leave

Calculates the payment an employee would get on a day where the employee takes bereavement leave, alternative holiday, public holiday or sick leave (BAPS leave)

NZ Greater of ADP and RDP

Calculates the payment an employee would get on a day where the employee takes leave and gets paid greater of ADP (Average Daily Pay) and RDP (Relevant Daily Pay)

NZ Greater of AWE/ OWP/ OWP4week

Calculates the annual holiday pay of an employee for a company that wants to use greater of everything

NZ Guaranteed Hours

Tops up the employee to the guaranteed hours the employee should be paid in the pay cycle

NZ KiwiSaver Employee

Calculates Employee KiwiSaver Contribution

NZ KiwiSaver Employer

Calculates Employer KiwiSaver Contribution

NZ KiwiSaver ESCT

Calculates ESCT (Employer Superannuation Contribution Tax) deduction

NZ Leave Pay

Calculates the employee leave payment for paid leave.

NZ PAYG Payment

Calculates the PAYG (Pay As You Go) payment

NZ Protected Net Earnings

Calculates Protected Net Earnings

NZ Public Holiday Worked

Calculates the payment for public holiday

NZ SLBOR

Calculates the SLBOR amount for an employee

NZ SLCIR

Calculates the SLCIR amount for an employee

NZ Student Loan

Calculates New Zealand Student Loan

NZ Super Employee

Calculates Employee Super Contribution

NZ Super Employee Accumulators

Calculates Employee Super Contribution based on accumulators

NZ Super Employer

Calculates Employer Super Contribution

NZ Super Employer Accumulators

Calculates Employer Super Contribution based on accumulators

NZ Super ESCT

Calculates ESCT (Employer Superannuation Contribution Tax) deduction non-KiwiSaver

NZ Tax

Calculates PAYE (Pay As You Earn), Student Loan and ACC (Accident Compensation Corporation) Earners Levy

Calculation rule order

Calculation rules are defined for particular transaction types and follow a specific processing order. The processing order makes sure the calculations are accurate.

TIP

Calculation rules don't affect Taxable Allowance transaction types, so the processing order doesn't matter for them.

Transaction Type Processing Order

Transaction Type

Calculation Rule

1

Non-paying transaction

NZ ADP Days

Hourly Pay Rate

NZ Annual Holiday Pay

NZ BAPS Leave

NZ PAYG Payment

Non Paid

2

Leave payments

NZ Greater of AWE/ OWP/ OWP4week

NZ Greater of ADP and RDP

NZ Leave Pay

Unpaid Leave

Leave Reversal

AU Public Holiday Not Worked

AU Leave Pay

NZ Annual Holiday Pay

NZ BAPS Leave

3

Taxable earnings

Hourly Pay Rate

AU Public Holiday Worked

Salary Reversal

NZ Public Holiday Worked

NZ Guaranteed Hours

NZ BAPS Leave

Salary

4

Non-taxable allowance

Hourly Pay Rate

5

Non-taxable reimbursement

Hourly Pay Rate

6

Lump Sum


AU Annual/Long Service Leave on termination

AU Tax

7

Termination

AU Annual/Long Service Leave on termination

In Lieu of Notice

8

Leave PAYG payments

NZ PAYG Payment

9

Pre-tax deduction

NZ Super Employer

NZ Super Employee

AU Employee Super Contribution

NZ Super Employer Accumulators

NZ Super Employee Accumulators

10

Tax deduction

NZ SLBOR

AU Tax

NZ Tax

NZ Student Loan

NZ SLCIR

11

Mandatory after-tax deduction

NZ KiwiSaver Employee

AU Protected Net Earnings

NZ Protected Net Earnings

12

Voluntary after-tax deduction

AU Employee Super Contribution

NZ Super Employee Accumulators

NZ Super Employee

13

Employer Super

NZ KiwiSaver Employer

NZ KiwiSaver ESCT

NZ Super Employer

NZ Super ESCT

NZ Super Employer Accumulators

AU SGC