PR - Award Calculations
Award Calculations Overview
An 'Award' in TASS.web can be defined to cover several possible scenarios:
- An actual industrial award (e.g. Teachers, School Officers).
- A group of similar awards.
- An award equivalent.
When considering the awards that you will need to set up in TASS.web, you should consider common entitlements as the determining factor. Possible entitlements include sick leave, annual leave, long service leave and leave loading.
The steps involved in setting up an award are:
- Determine the awards that you will require based on common entitlements.
- Refer to the document 'Implementing Leave Accruals in TASS.web'.
- Create the award code and description using program Payroll HRM > Payroll > Setup Information > Payroll Setup on the 'Awards' tab.
- Link the award calculation rules to the award using this program.
Rules
For each award, you can set up a unique set of Calculation Rules to reflect the requirements of that award.
The system comes with a standard library of rules, and each rule uses one of five calculation methods which define the type of calculation being made by that rule.
For more information, refer to section 'Calculation Rules' and 'Calculation Methods' on this page.
Important!
You should not attempt to modify Award Calculation Rules unless you have a clear understanding of how the Award….Method….Rule combination works.
This is a very complex area. We recommend that you engage a TASS consultant for initial configuration and all subsequent changes.
To 'View' an existing Award Calculation click on the 'View' link next to the relevant award.
The 'Award Calculation Rules' screen will then display the rules that have been set up for this award.
Adding a New Rule
To add a new Rule, click the 'New Rule' button to display the 'Award Calculation Rule Details' screen.
When satisfied with your entry, click the 'Save' button to commit your changes to the database or 'Cancel' to return to the selection screens.
Viewing and Editing a Rule
To 'View' or 'Edit' a rule, click on the 'Edit' link next to the relevant rule.
When satisfied with your entry, click on the 'Save' button to commit your changes to the TASS.web database.
Rule Details
| Fields that require further explanation | |
|---|---|
Rule Code | The drop-down list will display a list of the rules available on your system, prefixed by the method to which the rule belongs. Where the method name of the Rule is 'LAHOUR', 'LAANN' or 'LABAL' a rule can only be added once to an award. Where the method name of the Rule is 'LLTAKEN' a rule can be duplicated on an award, but a paycode/envelope combination can't be duplicated. Where the method name of the Rule is 'LLOAD' a rule can be duplicated on an award but only where a trigger is required, and as long as the paycode/envelope combination is unique. |
Method Name | The system will derive this from the rule code selected directly above. |
Trigger Paycode | This field will become mandatory if the rule requires a trigger. Where the method name of the Rule is 'LLTAKEN' this field will always be mandatory. Where the method name of the Rule is 'LLOAD' this field will be mandatory where the rule itself requires a trigger. |
Trigger Envelope | Usually, a trigger is set up against both envelopes. In which case, you will need to duplicate the rule for the other envelope. Where the method name of the Rule is 'LLTAKEN' this field will always be mandatory. Where the method name of the Rule is 'LLOAD' this field will be mandatory where the rule itself requires a trigger. |
Priority Indicator | Not used. |
Printing an Award's Calculation Rules
The 'Print' button on the 'Award Calculation Rules' screen provides:
- A listing of all rules for the award you have accessed.
- A listing of all rules for all awards on your system (use the 'Print All Awards' checkbox).
Calculation Methods
There are five inbuilt calculation methods:
- Leave Accrual - Hours Worked Method (LAHOUR).
- Leave Accrual - Anniversary Method (LAANN).
- Leave Taken Method (LLTAKEN).
- Leave Balance Method (LABAL).
- Leave Loading Method (LLOAD).
When the program Payroll HRM > Payroll > Pay Run Preparation > Calculate Pays processes a calculation rule, it uses the logic inherent in the method from that rule together with other specific values contained in the rule.
The details of each method are outlined below. This information should be read in conjunction with details of the standard calculation rules.
For further information on the standard Calculation Rules, refer to section 'Calculation Rules' (below) on this document.
1. Leave Accrual - Hours Worked Method
The system code for this method is 'LAHOUR'.
This method is designed to generate a period leave accrual (tran type '1') based on the actual hours worked by the employee in the current pay period.
The amount of the pay period accrual is determined using the hours/days paid to the employee on specific paycodes (those with the 'Accrue Leave on Hours/Days Paid' option ticked) compared to the 'full-time' hours/days for the employee's award defined in program Payroll HRM > Payroll > Setup Information > Payroll Setup on the 'Awards' tab in the 'Full Time Hours/Days' field.
Typical usage: This method is used for most leave accrual calculations.
The rule will pass in the following values that are used in calculating the accrual:
Value from Rule | Details | Example Rule AL_20_ANN |
|---|---|---|
Accrual Code | The accrual code that is used for this accrual. | ANN |
Annual entitlement | The number of days leave to accrue per year. | 20 |
Employee Status | This determines employees to get this accrual. F=full time; P=part time; C=casual. | P, F |
Service Years Range | Optional. Can specify the service year range required to receive this accrual. | |
Maximum Accrual | Optional. Can specify the maximum accrual balance for this accrual – accrual will stop when employee's balance reaches this amount. | |
Projection Flag | A Yes/No flag to indicate to the system if this rule can be used for calculating leave projections. | Y |
Example Scenario
Assumptions:
- Using rule 'AL_20_ANN' (Annual Leave).
- Fortnightly Payroll.
- The 'award full-time hours' for the employee's award is 76 hours.
- The employee works 60 hours in the pay period.
The period accrual calculation:
Accrual in hours per year: 20 days per year X 7.6 hours per day = 152 hours per year.
Accrual for full time employee per pay period: (152 hrs / 365.25) X 14 = 5.826146 hours.
Accrual based on 60 hours worked: 5.826146 X (60 / 76) = 4.599589 hours.
2. Leave Accrual - Anniversary Method
The system code for this method is 'LAANN'.
This method is designed to generate a leave accrual (tran type '1') based on the employee's base hours/days and optionally based on the employee's anniversary.
The amount of the pay period accrual is determined using the employee's base hours/days compared to the 'full-time' hours/days for the employee's award defined in Payroll HRM > Payroll > Setup Information > Payroll Setup on the 'Awards' tab in the 'Full Time Hours/Days' field.
Typical usage: The method has limited usage but is used mostly for leave accruals done annually in advance on the employee's anniversary where their service years are in a defined range, e.g. NSW Teachers Sick Leave.
The rule will pass in the following values that are used in calculating the accrual:
Value from Rule | Details | Example Rule SL_22_SCF_2P |
|---|---|---|
Accrual Code | The accrual code that is used for this accrual. | SCF |
Entitlement | The number of days leave to accrue. | 22 |
Employee Status | This determines employees to get this accrual. F=full time; P=part time; C=casual. | P, F |
Anniversary | A Yes/No flag to indicate if the accrual will only occur on the employee's anniversary. | Y |
Service Years Range | Optional. Can specify the service year range required to receive this accrual. | 1-50 |
Projection Flag | A Yes/No flag to indicate to the system if this rule can be used for calculating leave projections. | N |
Example Scenario
Assumptions:
- Using rule 'SL_22_SCF_2P' (Sick Leave Full Pay NSW Teachers).
- Fortnightly Payroll.
- The 'award full time hours' for the employee's award is 60 hours.
- Employee's base hours/days on their employee record is 40 hours.
- The employee's anniversary falls in the current pay period.
- The employee's service years is 5.
The period accrual calculation:
Accrual in hours per year: 22 days per year X 6 hours per day = 132 hours.
Accrual based on base hours/days of 40: 132 X (40 / 60) = 88 hours.
3. Leave Taken Method
The system code for this method is 'LTAKEN'.
This method generates an accrual taken transaction and requires a trigger paycode to be specified in the Award Calculation Rules Setups.
The method is 'triggered' when the trigger paycode specified in the Award Calculation Rule Setups is used in the employee's Normal Envelope or Adjustment Envelope. It uses the hours/days from the trigger paycode as the leave taken quantity and reduces the accrued entitlement linked to the rule code.
Typical usage: It is used to define the one or more paycodes that are linked to an accrual code. This enables the system to automatically reduce the employee's accrual balance when hours/days are paid on one of the 'linked' paycodes.
The rule will pass in the following value that is used in calculating the accrual:
Value from Rule | Details | Example Rule REDUCE_ANN |
|---|---|---|
Accrual Code | The accrual code that is used for this accrual | ANN |
Example Scenarios
Assumptions:
- Using rule 'REDUCE_ANN'.
- Paycode '201' is linked to accrual code 'ANN' (by an Award Rule).
- The employee is paid 38 hours using paycode '201' in the current pay period.
The accrual taken calculation:
Accrual Taken: 38 X -1 = –38 hours.
4. Leave Balance Method
The system code for this method is 'LABAL'.
This method is designed to generate an accrual transaction based on the current entitlement balance of a specified accrual code.
Typical usage: The method is generally used to transfer the balance from one accrual code to another or to zero the balance on an accrual code, e.g. Long Service Leave accrual is transferred from “non-current” (LSN) to 'current' (LSC) on the employee's 7th anniversary.
The rule will pass in the following values that are used in calculating the accrual:
Value from Rule | Details | Example Rule TFR_LSN_LSC_7A |
|---|---|---|
Accrual Code | The accrual code that is used for this accrual. | LSC |
Tran Type | The Tran Type for this accrual. 1= Accrual or 3 = Adjustment. | 1 |
Balance on Accrual | This is the Accrual Code to get the balance from. | LSN |
Multiple to Apply | A multiple to apply. It can be a positive or negative multiple. | 1 |
Anniversary | A Yes/No flag to indicate if the accrual will only occur on the employee's anniversary. | Y |
Service Years Range | Optional. Can specify the service year range required to receive this accrual. | 7-7 |
Maximum Transfer Value | Optional. Can specify a maximum to transfer. | |
Maximum New Balance | Optional. Can specify a maximum balance after the transfer is done. |
Example Scenario
Assumptions:
- Using rule 'TFR_LSN_LSC_7A'.
- Fortnightly Payroll.
- The employee's balance on Accrual Code 'LSN' is 90 hours.
- The employee's anniversary falls in the current pay period.
- The employee's service years is 7.
The accrual calculation:
Accrual Code = LSC.
Accrual Quantity = 90 hours.
(Note – there is a separate rule (ZERO_LSN_7A) to 'zero' the balance on accrual code 'LSN'.)
5. Leave Loading Method
The system code for this method is 'LLOAD'.
This method is designed to generate annual leave loading transactions (payments) and can run with or without a trigger paycode specified in Award Calculation Setups.
It can calculate the 'loading gross' using either the hours/days paid on the trigger Paycode (at base rate of pay) or the total amount paid on Paycodes that are flagged for Leave Loading.
It will split the total loading amount into taxable and tax-free components.
Typical usage: The method is used for all situations where leave loading is required to be system calculated. This includes where loading is paid as the annual leave is taken or where it is paid out as an annual 'bonus' type payment. It can also be used to pay loading bit by bit in each pay period.
The rule will pass in the following values that are used in calculating the loading payments:
Value from Rule | Details | Example Rule LL_TRG_888 |
|---|---|---|
Paycode for Leave Loading Tax-Free | The paycode used for the tax-free amount. | 202 |
Paycode for Leave Loading Taxable | The paycode used for the taxable amount. | 204 |
Loading Percent | The percentage used to calculate the loading. | 17.50 |
Annual Tax-Free Amount | The tax-free threshold per annum. | $320.00 |
Gross Method Flag | T = hours/days on trigger paycode X base rate; F = sum of the amounts of paycodes flagged to attract leave loading. | T |
Proportion | Percentage of the calculated amount to pay. | 100.00 |
Trigger Required Flag | Y/N flag. Always Y unless loading is paid out across every pay period. | Y |
Example Scenario
Assumptions:
- Using rule 'LL_TRG_888'.
- Fortnightly Payroll.
- The employee's Normal Envelope has paycode '888' with hours set to 120.
- The employee's base rate of pay is $30.
- This is their first leave loading payment for the tax year.
The loading calculation:
Gross for Leave Loading: 120 hours X $30 = $3600.00.
Total Leave Loading Amount: $3600.00 X (17.50/100) X (100/100) = $630.00.
Leave Loading Tax Free = $320.00.
Leave loading Taxable: $630.00 – $320.00 = $310.00.
Calculation Rules
The payroll comes with a standard library of rules. These are detailed below by calculation method.
1. Rules using the 'LAHOUR' (Leave Accrual - Hours Worked) Method
Rule Code | Accrual Code | Accrual In Days | Employ Status | Service Years | Max Acr | Proj |
|---|---|---|---|---|---|---|
AL_20_ANN | ANN | 20 | F, P | Y | ||
AL_25_ANN | ANN | 25 | F, P | Y | ||
AL_30_ANN | ANN | 30 | F, P | Y | ||
AL_35_ANN | ANN | 35 | F, P | Y | ||
AL_40_ANN | ANN | 40 | F, P | Y | ||
AL_45_ANN | ANN | 45 | F, P | Y | ||
AL_50_ANN | ANN | 50 | F, P | Y | ||
AL_55_ANN | ANN | 55 | F, P | Y | ||
AL_60_ANN | ANN | 60 | F, P | Y | ||
AL_20_ANH | ANH | 20 | F, P | Y | ||
AL_25_ANH | ANH | 25 | F, P | Y | ||
AL_30_ANH | ANH | 30 | F, P | Y | ||
SL_8_SCK | SCK | 8 | F, P | Y | ||
SL_10_SCK | SCK | 10 | F, P | Y | ||
SL_12_SCK | SCK | 12 | F, P | Y | ||
SL_15_SCK | SCK | 15 | F, P | Y | ||
SL_10_SKH | SKH | 10 | F, P | Y | ||
SPE_10 | SPE | 10 | F, P | Y | ||
SL_10_SCP | SCP | 10 | F, P | Y | ||
RDO_12 | RDO | 12 | F, P | Y | ||
OTH_10 | OTH | 10 | F, P | Y | ||
OTH_5 | OTH | 5 | F, P | Y | ||
PER_0P66 | PER | 0.666667 | F, P | Y | ||
SAB_8 | SAB | 8 | F, P | Y | ||
SAB_13 | SAB | 13 | F, P | Y | ||
SL_5_SCK_1 | SCK | 5 | F, P | 0-0 | N | |
SL_8_SCK_2 | SCK | 8 | F, P | 1-1 | N | |
SL_10_SCK_3P | SCK | 10 | F, P | 2-50 | N | |
SL_8_SCK_2P | SCK | 8 | F, P | 1-50 | N | |
SL_10_SCK_2P | SCK | 10 | F, P | 1-50 | N | |
SL_7_SCK_1 | SCK | 7 | F, P | 0-0 | N | |
SL_5_SCK_1_M | SCK | 5 | F, P | 0-0 | 120 | N |
SL_8_SCK_2_M | SCK | 8 | F, P | 1-1 | 120 | N |
SL_10_SCK_3P_M | SCK | 10 | F, P | 2-50 | 120 | N |
SL_7_SCK_1_M | SCK | 7 | F, P | 0-0 | 120 | N |
SL_10_SCK_2P_M | SCK | 10 | F, P | 1-50 | 120 | N |
SL_15_SCK_1_M | SCK | 15 | F, P | 0-0 | 120 | N |
SL_12_SCK_2P_M | SCK | 12 | F, P | 1-50 | 120 | N |
LSN_6P5_7C | LSN | 6.5 | F, P, C | 0-6 | Y | |
LSN_6P5_7 | LSN | 6.5 | F, P | 0-6 | Y | |
LNH_6P5_7 | LNH | 6.5 | F, P | 0-6 | N | |
LSN_4P3_7 | LSN | 4.3 | F, P | 0-6 | Y | |
LSN_4P33_5 | LSN | 4.33 | F, P | 0-4 | Y | |
LSN_5P25_5 | LSN | 5.25 | F, P | 0-4 | Y | |
LSN_6P5_10 | LSN | 6.5 | F, P | 0-9 | Y | |
LSN_6P5_5 | LSN | 6.5 | F, P | 0-4 | Y | |
LSN_6P5_6 | LSN | 6.5 | F, P | 0-5 | Y | |
LSN_6P5_8 | LSN | 6.5 | F, P | 0-7 | Y | |
LSN_4P33_10 | LSN | 4.33 | F, P | 0-9 | Y | |
LSN_5P25_10 | LSN | 5.25 | F, P | 0-9 | Y | |
LSN_6P0_10 | LSN | 6 | F, P | 0-9 | Y | |
LSN_5P0_10 | LSN | 5 | F, P | 0-9 | Y | |
LSC_6P5_7C | LSC | 6.5 | F, P, C | 7-50 | Y | |
LSC_6P5_7 | LSC | 6.5 | F, P | 7-50 | Y | |
LCH_6P5_7 | LCH | 6.5 | F, P | 7-50 | N | |
LSC_4P3_7 | LSC | 4.3 | F, P | 7-50 | Y | |
LSC_4P33_5 | LSC | 4.33 | F, P | 5-50 | Y | |
LSC_5P25_5 | LSC | 5.25 | F, P | 5-50 | Y | |
LSC_6P5_10 | LSC | 6.5 | F, P | 10-50 | Y | |
LSC_6P5_5 | LSC | 6.5 | F, P | 5-50 | Y | |
LSC_6P5_6 | LSC | 6.5 | F, P | 6-50 | Y | |
LSC_6P5_8 | LSC | 6.5 | F, P | 8-50 | Y | |
LSC_11P5_10 | LSC | 11.5 | F, P | 10-50 | Y | |
LSC_5P25_10 | LSC | 5.25 | F, P | 10-50 | Y | |
LSC_10P0_10 | LSC | 10 | F, P | 10-50 | Y | |
LSC_6P5_5T9_5 | LSC | 6.5 | F, P | 5-9 | Y | |
LSC_10P0_10_5 | LSC | 10 | F, P | 10-50 | Y | |
LSC_5P0_10 | LSC | 5 | F, P | 10-50 | Y |
2. Rules using the 'LAANN' (Leave Accrual – Anniversary) Method
Rule Code | Accrual Code | Accrual In Days | Employ Status | Service Years | Anniv | Proj |
|---|---|---|---|---|---|---|
SL_15_SCF_1 | SCF | 15 | F, P | 0-0 | Y | N |
SL_15_SCK_1 | SCK | 15 | F, P | 0-0 | Y | N |
SL_22_SCF_2P | SCF | 22 | F, P | 1-50 | Y | N |
SL_22_SCH_2P | SCH | 22 | F, P | 1-50 | Y | N |
SL_15_SCK_1P | SCK | 15 | F, P | 0-50 | Y | N |
OTH_5_ANNIV | OTH | 5 | F, P | 0-50 | Y | N |
SL_10_SCK_ANNIV | SCK | 10 | F, P | 0-50 | Y | N |
SL_10_SKH_ANNIV | SCK | 10 | F, P | 0-50 | Y | N |
SL_12_SCF_2P | SCF | 12 | F, P | 1-50 | Y | N |
SL_12_SCK_ANNIV | SCK | 12 | F, P | 0-50 | Y | N |
SL_15_SCF_2 | SCF | 15 | F, P | 0-1 | Y | N |
SL_20_SCF_3P | SCF | 20 | F, P | 2-50 | Y | N |
SL_20_SCF_ANNIV | SCF | 20 | F, P | 0-50 | Y | N |
SL_25_SCF_2P | SCF | 25 | F, P | 1-50 | Y | N |
SL_33_SCF_2P | SCF | 33 | F, P | 1-50 | Y | N |
3. Rules using the 'LTAKEN' (Leave Taken) Method
Rule Code | Accrual Code |
|---|---|
REDUCE_ANN | ANN |
REDUCE_SCK | SCK |
REDUCE_LSC | LSC |
REDUCE_ANH | ANH |
REDUCE_LCH | LCH |
REDUCE_SKH | SKH |
REDUCE_SPE | SPE |
REDUCE_SCP | SCP |
REDUCE_RDO | RDO |
REDUCE_OTH | OTH |
REDUCE_PER | PER |
REDUCE_SAB | SAB |
REDUCE_SCF | SCF |
REDUCE_SCH | SCH |
REDUCE_SNF | SNF |
REDUCE_SNH | SNH |
REDUCE_SCN | SCN |
4. Rules using the 'LABAL' (Leave Balance) Method
Rule Code | Accrual Code | Tran Type | Bal on Accrual | Multiple | Ann | Serv Years | Max Tfr | Max Bal |
|---|---|---|---|---|---|---|---|---|
ZERO_LSN_7A | LSN | 1 | LSN | -1 | Y | 7-7 | ||
ZERO_LNH_7A | LNH | 1 | LNH | -1 | Y | 7-7 | ||
ZERO_LSN_5A | LSN | 1 | LSN | -1 | Y | 5-5 | ||
ZERO_LSN_10A | LSN | 1 | LSN | -1 | Y | 10-10 | ||
ZERO_LSN_6A | LSN | 1 | LSN | -1 | Y | 6-6 | ||
ZERO_LSN_8A | LSN | 1 | LSN | -1 | Y | 8-8 | ||
TFR_LSN_LSC_7A | LSC | 1 | LSN | 1 | Y | 7-7 | ||
TFR_LNH_LCH_7A | LCH | 1 | LNH | 1 | Y | 7-7 | ||
TFR_LSN_LSC_5A | LSC | 1 | LSN | 1 | Y | 5-5 | ||
TFR_LSN_LSC_10A | LSC | 1 | LSN | 1 | Y | 10-10 | ||
TFR_LSN_LSC_6A | LSC | 1 | LSN | 1 | Y | 6-6 | ||
TFR_LSN_LSC_8A | LSC | 1 | LSN | 1 | Y | 8-8 | ||
ZERO_SCF_1TO50A | SCF | 1 | SCF | -1 | Y | 1-50 | ||
ZERO_SCH_1TO50A | SCH | 1 | SCH | -1 | Y | 1-50 | ||
TFR_SCF_SNF_2PA | SNF | 1 | SCF | 1 | Y | 2-50 | 20 | 80 |
TFR_SCH_SNH_2PA | SNH | 1 | SCH | 1 | Y | 2-50 | 20 | 80 |
5. Rules using the 'LLOAD' (Leave Loading) Method
Rule Code | Paycode No Tax | Paycode Taxable | Loading Percent | Tax-Free Threshold | Gross Flag | Proportion Percent | Trigger Reqd |
|---|---|---|---|---|---|---|---|
LL_FLAG_201 | 202 | 204 | 17.5 | 320 | F | 100 | Y |
LL_TRG_201 | 202 | 204 | 17.5 | 320 | T | 100 | Y |
LL_TRG_201_80PC | 202 | 204 | 17.5 | 320 | T | 80 | Y |
LL_TRG_201_66PC | 202 | 204 | 17.5 | 320 | T | 66.66667 | Y |
LL_TRG_201_50PC | 202 | 204 | 17.5 | 320 | T | 50 | Y |
LL_TRG_888 | 202 | 204 | 17.5 | 320 | T | 100 | Y |
LL_TRG_887 | 202 | 204 | 17.5 | 320 | T | 100 | Y |
LL_FLAG_NO_TRG | 202 | 204 | 1.346154 | 320 | F | 100 | N |