First Biweekly Payroll in October (Pay Increases, Annual Benefits Base)
Posted September 25, 2002.
PeopleSoft HRMS Known Issues and Information - 09/25/02:
Please review and distribute as need the following issues concerning the first biweekly payroll in October:
- Annual Benefits Base Rate calculations on payroll deductions
- October 1 Pay Increases
Annual Benefits Base Rate calculations on payroll deductions
Because the rules for calculation of benefits based on salary use the Annual Benefits Base Rate as of the pay period end date, the Annual Benefits Base Rate in effect on 09/27/2002 will be used to calculate benefit deductions for the first biweekly payroll in October. This will result in a smaller deduction for the first biweekly than will be made for the benefit in the second biweekly in October.
The options are to (1) remit the actual amount deducted for the month even though the deductions are based on two different rates, (2) remit an amount for the month based on the 10/01 Annual Benefits Base Rate even though this creates a shortage in the agency account, or (3) make payline adjustments in the second biweekly payroll to deduct an additional amount equal to the difference in the first and second biweekly deductions.
October 1 Pay Increases
Every biweekly employee receiving a pay increase effective 10/01/02 will have three pay lines created in the payroll for P/E 10/11/02. One pay line will have a begin date of 09/28/02 and an end date of 09/30/02 and will show the old rate of pay. One pay line will have a begin date of 10/01/02 and an end date of 10/04/02. The other pay line will have a begin date of 10/05/02 and an end date of 10/11/02. Both of these pay lines will show the new rate of pay.
If no exception time is entered for B06 employees with standard hours per week = 40, the employees' standard hours will default to the pay lines in this manner: 8 regular hours for the pay line ending 09/30/02, 32 regular hours for the pay line ending 10/04/02, and 40 regular hours for the pay line ending 10/11/02.
If a B06 employee has exception time, enter time through the time entry panels so that sick and vacation hours taken are validated against leave balances.
Pay Edit will display the following warning message for all employees with a 10/01/02 pay rate change:
** WARNING ** Active job #0 Job Action this pd. Erncd=REG,Wk1=XX.X,Wk2=XX.X. Action=PAY,Effdt=10/01
This is just a warning message. Hours entered will clear Pay Edit and will be updated to the pay line after Pay Update is run.
Note: Pay Update will post all hours entered on the time entry panel for Week 1 to the pay line ending 10/04/02. If the employee worked hours or took leave that should be paid at the old rate of pay, reduce the hours on the 10/04/02 pay line by the number of hours worked at the old rate of pay. Add these hours to the pay line ending 09/30/02. Make sure to use the correct earn code when transferring these hours. This should be done after the final Pay Update has been run.
If you have any questions, please contact OIIT Customer Services at 1-888-875-3697 or HelpDesk@PeachNet.EDU.