HR359_Salary_Rounding



Application: HRMS

Module: Human Resources

Business Process: Administer Salary Plans

Requirement Number: HR359

Requirement Title: Ability to round hourly salary to reflect current bargaining unit rates

Module Leads: Lina Simonu, Lisa Lagus

1. Requirement Description

Describe the requirement (gap). Include a description of the delivered PeopleSoft functionality.

Currently the State of Connecticut calculates annual salaries based on 26.1 times the biweekly rate.

The State of Connecticut works their salary formula down from the annual rate as such:

To get the bi-weekly rate, take the annual rate ($26,442) divided by 26.1 = $1,013.1034 (State always rounds up a penny - $1,013.11)

To get the daily Rate, take the bi-weekly rate ($1,013.11) and divide by 10 = $101.311 (State rounds up a penny - $101.32)

To get the hourly rate, take the bi-weekly rate ($1,013.11) and divide by the designated standard hours of the applicable contract (80) = $12.663875 (State rounds up a penny $12.67)

These rates appear in the negotiated bargaining contracts.

As delivered in PeopleSoft, the bi-weekly rate would reflect the correct amount, however, the monthly, annually, daily and hourly rate would not reflect the states non-traditional method of calculating salary.

If payment needs to occur to an employee with less then the standard hours, PeopleSoft would calculate the amount of hours worked by the employees hourly rate carried out to the sixth digit. This formula is accurate for payment.

2. Business Need

Provide a justification for the requirement. Include information about frequency, volume, number of users impacted, etc.

The State of Connecticut would need the bargaining units negotiated amount represented on the Job Data page instead of PeopleSoft’s amount.

3. Required By: (Y/N)

Federal ____ Agency ____ Bargaining Unit __Y_

State Statutory ___ State Regulatory ____ State Procedural ____

4. Requirement Priority

_High___ (High, Medium, Low – please see “Requirements Prioritization Criteria”)

5. Recommended Solution

Enter an “X” next to the appropriate category

__X___ Process Solution

_1_ Option Number

______ Application Modification

___ Option Number

6. Explanation for Recommendation

Provide reasons for recommendation. Please do not re-state the description of the solution itself.

Due to the fact that the employee payment will be correct in PeopleSoft and that this payment equals the negotiated biweekly rate in the union contract the process solution is recommended. If the system were modified to round up based on the State’s rounding procedure, employees will be overpaid when exception time is reported through time and labor as the negotiated hourly rate times the employee’s standard hours is greater than the negotiated biweekly rate.

7. Organizational Impact of Recommendation

Describe the changes to the organization that result from the recommended solution. Include a description of any role, process, statute, or bargaining unit agreement affected.

Union contracts should be negotiated based on the PeopleSoft rounding method, so that rates will correspond to one another.

8. Process Solutions

Describe the possible Process Solutions. Include a description of impacts and benefits of each solution.

Option 1. PeopleSoft Salary Step tables will be configured with the appropriate biweekly rate, as defined in the union contracts. For non-union members, the current biweekly compensation rate will be converted as their PeopleSoft biweekly compensation rate. As a result the hourly rate will be calculated on the Salary Step table and the Job record based on standard hours and FTE. When an employee receives exception time, such as sick pay, vacation pay, or regular pay through time and labor, the job hourly rate will be used to calculate the employee’s earnings.

For example: An employee has a biweekly compensation rate of $1,013.11. Their hourly rate, calculated in PeopleSoft will be the (biweekly rate / standard hours)* FTE, or $12.663875 based on 80 hours and 1 FTE.

If exception time is reported for the employee the calculation will be as follows:

72 hours Regular pay * $12.663875 = $911.80

8 hours Sick pay * $12.663875 = $101.31

Total Biweekly Payment = $1013.11

This option would ensure that union employees receive the negotiated biweekly amount on a biweekly basis. The hourly rate in the union contract would differ in some cases from the hourly rate online in PeopleSoft on the Salary Step, Job Compensation, and Pay Check Data pages.

9. Application Modifications

Describe the possible Application Modifications. Include a description of impacts and benefits of each solution.

Option 1.

Modification Type (On-line, Batch, Interface, Report, Workflow): Batch

Complexity (Easy, Medium, Difficult): Difficult

Description: Modify the delivered COBOL upload to payroll process (PSPLDTL1), the paysheet creation process (PSPPYSHT), the payroll calculation processes (PSPPYRUN, PSPPYCAL, PSPECALC, PSPDCALC, PSPTCALC), and the retroactive payroll calculation processes (PSPRPEXT, PSPRPMSS, PSPRPPSH, PSPRPUND) to accommodate the State of Connecticut’s rounding process.

Option 2.

Modification Type (On-line, Batch, Interface, Report, Workflow):

Complexity (Easy, Medium, Difficult):

Description:

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