Navigation: Pay | Payroll Transaction Configuration
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 |