If an hourly employee doesn't have a salary value defined, Dayforce calculates and shows an annualized salary value. Similarly, if a salaried employee has an annual salary defined, but no base rate, Dayforce calculates a base rate value. To make these calculations, Dayforce checks a number of variables to determine if there is an existing configuration for either the employee, pay group, or pay class. These variables all represent hours worked in a certain period. Each variable needs to be multiplied by another (hard-coded) factor to determine the working hours per year.
After these checks are performed, if Dayforce can find no other configurations for determining the base rate or annual salary, the annual salary is divided by the default value of 2080 working hours (or, the base rate is multiplied by 2080 working hours to get the annual salary). However, some organizations might want to use a different value to account for the fact that there aren't always exactly 52 weeks in a calendar year. To do so, you can enter the preferred number of weeks in a calendar year in the Weeks Per Year field of the Pay Group Properties tab in Pay Setup > Pay Group. This value is then used by Dayforce to convert an employee's annual salary to base rate, or vice versa, when creating or updating an employment status record in the following areas of Dayforce:
- The Job Assignment and Compensation Change form.
- The Employment Status tab of the Employment > Employment Settings screen in People.
- XML forms.
- The Work > Work Assignments screen of People (in cases where you create or update a work assignment where the pay class or pay type doesn’t match the job’s default value in the job assignment, a status record is created).
If no value is entered in the Weeks Per Year field, Dayforce assumes that there are 52 weeks in the year when calculating an employee's salary or base rate.
Note: Employment status records created or updated after you specify a value in the Weeks Per Year field will respect the defined value, however, existing status records won't be updated automatically.
The following table describes the priority that Dayforce uses when determining the hours value in salary calculations (based on pay group). If the first value in the list isn't defined for the employee, Dayforce uses the next value in the list until it finds a value, as follows:
| Pay Group Type | Hours Used in Salary Calculation (Listed in Priority Order) | Source | Respects Weeks Per Year field? |
|---|---|---|---|
|
Weekly |
1. Normal Weekly Hours | Employee HR record | Yes |
| 2. Normal Pay Period Work Hours | Pay group | No | |
| 3. Default Weekly Hours | Pay class | Yes | |
| 4. 40 Hours | Default | Yes | |
| Semi-Monthly | 1. Normal Semi Monthly Hours (Top) | Employee HR record | No |
| 2. Normal Weekly Hours | Employee HR record | Yes | |
| 3. Normal Pay Period Work Hours | Pay group | No | |
| 4. Default Weekly Hours | Pay class | Yes | |
| 5. 40 Hours | Default | Yes |
These hours are defined as follows:
| Hours. | Purpose |
|---|---|
| Normal Weekly Hours | Defined in the Normal Weekly Hours field of the employee’s HR record in the Employment > Employment Settings screen of People. |
| Normal Pay Period Work Hours | Defined for the employee’s pay group in the Normal Pay Period Work Hours field of the Payroll Properties tab in Pay Setup > Pay Group. |
| Semi Monthly Hours | Defined in the Normal Semi Monthly Hours (Top) field of the employee’s HR record in the Employment > Employment Settings screen of People. |
| Default Weekly Hours | Defined for the employee’s pay class in the Default Weekly Hours field of HR Admin > Pay Class. |
| 40 Hours | A default value of 40 hours is used only if none of the other values are defined for the employee. |