If an hourly employee has an annual salary value defined in their HR record, Dayforce uses this value as their salary by default. If they don’t have a salary value defined, Dayforce calculates and shows an annualized salary value. This annualized salary is calculated by multiplying the employee’s hourly rate with their usual worked hours.
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) |
|---|---|
|
Weekly |
|
| Semi-Monthly |
|
These hours are defined as follows:
- Normal Weekly Hours: Defined in the Normal Weekly Hours field of the employee’s 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 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.
In worksheet columns that show salary information, Dayforce includes an information icon (
) next to the value for hourly employees. This icon indicates that the value is annualized and when you click the icon, Dayforce shows a tooltip showing the employee’s hourly rate and the total annualized hours used to calculate their salary: