What are the different types of calculation methods Payroll provides?
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Calculation method list

Calculation methods determine how amounts calculate. You can select a calculation method when you set up or modify pays, deductions, and fringes, and while you customize how pays, deductions, and fringes calculate for a particular employee or union.

The Calc method lists commonly used calculations so you do not have to create a formula to handle routine calculations. If the preset calculation methods do not meet your needs, you can select Formula as the Calc method and design your own formula.


  • Default: This calculation method calculates according to the Calc Method selected in the Union Class Setup window (if using unions), or from the Deduction/Pay/Fringe Setup window. Selecting a different calculation method customizes the deduction calculation.

  • Flat amount: Use this calculation method if the pay, deduction, or fringe is a flat amount. For example, if an employee monthly car allowance is a flat amount of $150.00, select Flat amt in the Calc method box and enter 150.00 in the Amount box. Flat amount pays, deductions, and fringes calculate automatically only for the first check in a pay period.

  • Regular hrs: Regular hours consist of total units entered for pay IDs with a Pay Type of Regular. Use this calculation method when the pay, deduction, or fringe is based on the total regular hours. For example, an employee has worked 40 regular hours and 5 overtime hours for the week. The employee has a fringe benefit that accumulates $1.25 for each regular hour worked. Select Regular hrs in the Calc method box and enter 1.25 in the Amount box to generate these results: 40 hours X $1.25 = the fringe amount of $50.00.



  • Overtime hrs: Overtime hours consist of total units entered for pay IDs with a Pay Type of Overtime. Use this calculation method if the pay, deduction, or fringe is based on overtime hours. For example, an employee worked 40 regular hours and 5 overtime hours for the week. The employee has a fringe benefit that accumulates $1.25 for each overtime hour worked. Select Overtime hrs in the Calc method box and enter 1.25 in the Amount box to generate these results: 5 hours X $1.25 = the fringe amount of $6.25.



  • Total hrs: Total hours consist of total units entered for pay IDs with a Pay Type of Regular and Overtime. Use this calculation method if the pay, deduction, or fringe is based on total hours. For example, an employee worked 40 regular hours and 5 overtime hours for the week. The employee has a fringe benefit that accumulates $1.25 for each hour worked, regardless of whether the hours worked are regular or overtime. Select Total hrs in the Calc method box and enter 1.25 in the Amount box to generate these results: (40 + 5 hours) X $1.25 = the fringe amount of $56.25.



  • Regular pay: Regular pay consists of all pay IDs with a Pay Type of Regular. Use this calculation method if the pay, deduction, or fringe is based on regular pay. For example, an employee receives $500 regular pay and $112.50 overtime pay. The employee has a union benefit that accumulates 5.0% of regular pay. Select Regular pay in the Calc method box and enter 5.0 in the Percent box to generate these results: $500.00 X .05 = the benefit amount of $25.00.



  • Overtime pay: Overtime pay consists of all pay IDs with a Pay Type of Overtime. Use this calculation method if the pay, deduction, or fringe is based on overtime pay. For example, an employee receives $500 regular pay and $112.50 overtime pay. The employee has a union benefit that accumulates at 4.0% of overtime pay. Select Overtime pay in the Calc method box and enter 4.0 in the Percent box to generate these results: $112.50 X .04 = the benefit amount of $4.50.



  • Total pay: Total pay consists of total pay entered for pay IDs with a Pay Type of Regular and Overtime. Use this calculation method if the pay, deduction, or fringe is based on total pay. For example, an employee receives $500 regular pay and $112.50 overtime pay. The employee has a union benefit that accumulates 4.0% of regular and overtime pay. Select Total pay in the Calc method box and enter 4.0 in the Percent box to generate these results: ($500.00 + $112.50) X .04 = the benefit amount of $24.50.



  • Straight pay: Straight pay multiplies total hours worked by the regular rate of pay. Use this calculation method if the pay, deduction, or fringe is based on straight pay. For example, an employee worked 40 regular hours and 5 overtime hours for the week with a rate of pay of $15.00. The employee has a workers' compensation fringe benefit that calculates 5.0% on the straight pay portion of earnings. Select Straight pay in the Calc method box and enter 5.0 in the Percent box to generate these results: (40 + 5) X $15.00 = $675.00 basis. $675.00 X .05 = the benefit amount of $33.75.


    Select the Straight pay check box for an Other pay in the Pay Setup window to include a Pay Type of Other or Cash fringe in the straight pay calculation.


  • Net pay: To calculate net pay, earnings are computed, taxes and deductions are subtracted, and a preliminary net pay is derived. Use this calculation method if the pay, deduction, or fringe is based on a percent of net pay. For example, if a wage garnishment accrues at 15% of net pay, select Net pay in the Calc method box and enter 15.0 in the Percent box (net pay is multiplied by .15 to calculate the pay, deduction, or fringe).


    For pays based on net pay, once the amount of pay calculates, it is added to the employee s earnings. The appropriate taxes and deductions then recalculate to derive a final, inclusive net pay. For deductions based on net pay, once the deduction amount calculates, it is subtracted from employee earnings and taxes recalculate to derive a final, inclusive net pay. For fringes based on net pay, the fringe amount uses the preliminary net pay amount to calculate.


  • Gross pay: Gross pay consists of all pay IDs entered with a Pay Type of Regular, Overtime, and Other. Use this calculation method if the pay, deduction, or fringe is based on gross pay. For example, an employee receives $500.00 of regular pay, $112.50 of overtime pay, and $100 of bonus pay (Pay Type is Other). The employee has a 401(k) plan deduction that calculates on 8% of gross pay. Select Gross pay in the Calc method box and enter 8.0 in the Percent box to generate these results: ($500.00 + $112.50 + $100.00) X .08 = the deduction amount of $57.00.



  • Days worked: Days worked is determined from the Pay Group Setup window, or if entered during earnings entry, from the Check Information window (available in Enter Time, Change Unposted Time, or Enter Checks). Use this calculation method if the pay, deduction, or fringe is based on the number of days worked. For example, an employee is working offsite for 5 days and receives a lodging allowance of $75.00 for each day worked. Select Days worked in the Calc method box and enter 75.00 in the Amount box to generate these results: 5 days X $75.00 = $375.00.


    Days worked pays, deductions, and fringes automatically calculate only for the first check in a pay period.


  • Weeks worked: Weeks worked is determined from the Pay Group Setup window, or if entered during earnings entry, from the Check Information window (available in Enter Time, Change Unposted Time, or Enter Checks). Use this calculation method if the pay, deduction, or fringe is based on the number of weeks worked. For example, an employee is working offsite for 2 weeks and receives a lodging allowance of $250.00 for each week worked. Select Weeks worked in the Calc method box and enter 250.00 in the Amount box to generate these results: 2 weeks X $250.00 = $500.00.


    Weeks worked pays, deductions, and fringes automatically calculate only for the first check in a pay period.


  • Other units: Use this calculation method if the pay, deduction, or fringe is based on other units, such as miles. For example, an employee receives a travel reimbursement of 35 cents per mile traveled. The employee has driven 150 miles. Select Other units in the Calc method box and enter .35 in the Amount box to generate these results: 150 miles X $.35 = $52.00. Unit amounts use the Units column in Enter Time, Change Unposted Time, or Enter Checks to calculate.


    If you select Other units as the calculation method, you can use a formula to calculate a rate. When the check processes, the rate is multiplied by the number of units.


  • Formula: Use if none of the preset calculation methods can accommodate the pay, deduction, or fringe requirements. In the Calc method box, select Formula to calculate the pay, deduction, or fringe with your formula. In the Formula box, enter the formula ID. The Amount box only needs an amount if the formula references this field.



  • Hrs paid: Hours paid accumulate as regular hours + (overtime hours X overtime factor). Use this calculation method if the pay, deduction, or fringe is based on the number of hours paid. For example, an employee worked 40 regular hours and 5 overtime hours for the week. The overtime factor is 1.5. A union Health & Welfare benefit is $1.40 for each hour paid. Select Hrs paid in the Calc method box and 1.40 in the Amount box to generate these results: (40 + (5 X 1.5)) X $1.40 = the fringe amount of $66.50.
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