Pay factor behaviour

The behaviour of the pay factor field varies in Payroll Maintenance depending on what pay type is being used.

For more information on how superannuation is effected by the factor, see Calculating superannuation.

The following pay types have different behaviours:

• N (Normal Payment)
• R (Deduction - Pre-Tax (non-superannuation)).

The following pay types are not recommended for use with the payroll factor:

• T (Withholding Adjustment)
• H (Withholding Adjustment - HELP)
• A (Allowance - Non-Taxable)
• D (Deduction - After-Tax (non-superannuation)
• Z (Other Payment - Termination).

N (Normal Payment) behaviour

The behaviour of the N pay type depends largely on the default pay amounts for the pay code you are working with.

Example 1

In this example an employee might work part-time (factor 0.5) as a librarian, and therefore is entitled to half the librarian's wage. In this case, the librarian's wage is $1000.00 so the person is paid $500.00.

If the default amount for a librarian is not defined then the factor has no effect. In fact, it should not be there, unless combined with rate and amount values.

Example 2

The next two examples indicate how the factor is affected depending on whether or not there are default values defined for pay codes.

Example 3

In this scenario there is no default amount for NOTHR. Synergetic then calculates the pay factor based on the first line of pay. Subsequent pay lines do the same thing.

R (Deduction - Pre-Tax (non-superannuation)) behaviour

The behaviour of the R pay type is very straightforward, it simply sums up the totals of the lines before it (that are not type R) and applies the pay factor calculation.

Example 1

Example 2

This example shows two lines of Salary Sacrifice, indicating that they are both calculated from the N line and are not affected by the value of the other R line.

Example 3

In this example, we demonstrate how the R includes all non-R lines above it on the calculation.