Calculate Salaries

Select this checkbox in the Salary and Fringe Calculation page to calculate salary and pay rate increases. The increases are created in the following options:

The system uses the current year salaries extracted from Human Resources as the base for the calculations. To simulate the salary and rate increases beforehand, run the Employee Rate Increase Report.

After running the calculations, the system generates the Calculating Employee Salaries Log report, which shows the original rates, new rates, special pay amounts, and midyear increases. The report's default file name is calsal.rpt.

Caution

The Calculate Salaries option must be run before the other Salary and Fringe Calculation options.

Menu Path:  Personnel Budgeting > Entry & Processing > Personnel Budgeting > Salary and Fringe Calculation. For the general procedure to follow, refer to Salary and Fringe Calculation.

Calculating Scheduled Class Increases

Employees on salary schedules have either an hourly or salaried pay method:

The pay method is assigned to a rate in the Pay Rate Information page, while salary schedules are defined in Human Resources' Salary Schedule table.

Determining the Timing of Increases

Scheduled rates can be increased at the start of the fiscal year or on the employee anniversary date. Full year increases for scheduled rates are applied when employees are stepped using the Auto-Step Employees option.

During salary calculations, the system checks the Effective Date Salary Schedule file in Human Resources. The system looks for schedules matching the rate's current schedule but with an effective date after the rate's start date. Schedules applied in date order are prorated for the portion of the calendar in which they are in effect.

• Increases up to the Increase A date are stored in the Increase A Amount and % fields of employees' Pay Rate Information pages. Increases after the Increase A date are stored in the Increase B Amount and % fields.
• Job classes that receive midyear increases have their rates stepped on employees' anniversary dates.
• Anniversary and increase dates are applied in the order of their occurrence.

The following equation is used to calculate increases for rates that use schedules from the Effective Date Salary Schedule file:

(Annual Difference Between Previous Effective Schedule and Effective Schedule for Same Step) x (Calendar Days from Effective Date to Contract End Date ÷ Total Days Worked) = Annual Increase Per Schedule

Calculating NonScheduled Class Increases

Personnel Budgeting's NonScheduled Classes Increase table stores percentage and amount increases for all employees in a job class. The system adds the increases to either the current salary or pay rate to determine the budget year salary, depending on the pay method:

Increases can affect the full budget year or part of the year based on the Non-Scheduled Salary Increase page's Effective Date field, which determines the order increases are applied:

FullYear Increases are stored in the Annual Increase B field in the Pay Rate Information page.

MidYear Increases up to and including the anniversary are stored in the Annual Increase A field. Increases after the anniversary date are stored in the Annual Increase B field.

• If both a percentage and amount apply and both occur on the same increase date, the percentage is calculated first, and then the amount is added.
• Increases that apply to additional duties are calculated separately from those for regular pay.

The calculations for fullyear increases are fairly straightforward. Midyear increase amounts, however, need to be prorated according to the number of days in the budget year. Following are the equations used in calculating midyear increases, as determined by the pay method assigned.

H - Hourly Pay Method

D - Daily Pay Method

P - Pay Period Pay Method

Calculating Special Pays

Employees can have up to three special pays assigned to their primary rates. Special pays cannot be used with secondary rates.

In calculating the annual amounts, the system multiplies the special pay by the value from the Pay Code record's Number of Special Pays field. The system stores the values from these calculations in employees' Pay Rate Information Pages. The special pays and resulting budgeted salary are calculated as follows:
Special Pay x Number of Special Pays = Special Pay Amount

Special Pay Amount 1 + Special Pay Amount 2 + Special Pay Amount 3 = Annual Special Pay Total
Annual Special Pay Total + New Year Salary = Budgeted Salary