Pay Hierarchy

The options for deriving an employee's hours and pay rate form a hierarchy that can be as simple or as complex as your business requirements. 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 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 Desktop uses the rate that is set and not lookup a rate.
• Rate/Amount is Zero - Greentree Desktop uses the hierarchy below to find the rate.

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

Rates

Payroll has a hierarchy of rates that you can apply at each level for an employee. The rate an employee is paid is derived using the hierarchy below. Once a rate is found Greentree Desktop uses that rate and doesn't go any further through the hierarchy.

Define a rate by select the Rate option on either the Pay tab of the Employee Maintenance form or on the Contract Rate Maintenance form.

Greentree looks up rates on the pay when a transaction type, classification, or date changes. If the No rate checkbox is selected on a pay line, the rate on the line defaults to the pay with the entered rate. It is 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 a change of the employee's usual classification.
• Employee - If the transaction type exists with 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 Pay tab on the Employee Maintenance form and the transaction type exists in the classification and is set as a rate, this is the rate used.
• Transaction Type - A rate is selected from the transaction type based on date of the pay.