Pay Hierarchy

There are a number of options in Greentree for Payroll where a employee's hours and pay rate can be derived. These options form a hierarchy that can be as simple or as complex as your business requirements.

In most countries, there are a number of ways an employee can be remunerated even within the same organisation and most companies will have staff that can attract varying rates.

In the Payroll module You can pay ordinary hours at different rates and different quantities.

Standing Pay

A standing pay is the default lines that are added to a pay when it is initially created. This can consist of all the employee's pay lines, some of the employee's pay lines, or no pay lines. These would normally include tax lines, payment lines, standard deductions and employer cost lines. The default pay lines can come from lines on the employee or the classification set on an employee with a quantity or amount.

Rate/Amount is set - Greentree uses the rate that is set and not lookup a rate.
Rate/Amount is Zero - Greentree uses the hierarchy below to find the rate

If a default line with the same transaction type is set at both the employee and classification level, then the classification line is not added to the pay.

Rates

Payroll has a hierarchy of rates that can be applied at each level for an employee. The rate an employee is paid is derived using the hierarchy below. Once a rate is found Greentree uses that rate and doesn't go any further through the hierarchy. A rate is defined by select the Rate option on either the Employee Maintenance | Payroll | Pay tab or the Contract Rate Maintenance.

Greentree looks up rates on the pay when a transaction type, classification, or date is changed. If a pay line is set with no rate checkbox set, the rate on the line defaults to the pay with the entered rate, but not be used for any new lines with the same transaction type.

Pay Entry - If the transaction type is flagged as changeable the rate can be changed when processing pay.
Classification set on a pay line - The classification can be entered against a pay line. If the transaction type exists in the classification and is set as a rate, this is the rate used. This can be an change of the employee's usual classification.
Employee - If the transaction type exists against the employee and is set as a rate, this is the rate used.
Classification set on an Employee - If the employee has a classification set on the Employee Maintenance | Payroll | Pay tab and the transaction type exists in the classification and is set as a rate, this is the rate used.
Transaction Type - A rate will be selected from the transaction type based on date of the pay