The Forecasted Pay Rule is used to configure Pay Current pay details. Used in conjunction with the Auto Pay Rule, it is used to automatically calculate an employee's pay amount for pay periods or the earning assigned to auto pay amounts.
Forecasted Pay Rule Parameters
Pay period hours
Enter the number of hours that Dayforce uses to calculate the forecast pay amounts, regardless of the values in employee records in the People feature, in the Pay period hours parameter. The Pay period hours value overrides the employee-specific pay period hours.
Forecasted earning
Select the earning that Dayforce assigns to forecasted pay amounts.
Enable mid-period proration by business day
Select the checkbox to configure the rule to prorate the amount of auto pay employees earn when they are hired, terminated, or when the details of their employee records change, such as a change of pay group, in the middle of a pay period.
For example, when an employee is hired on the Wednesday of a weekly pay period and only works three business days, the rule auto pays the employee a prorated amount for the three days worked.
- Determines the employee's normal amount of hours in the pay period. This amount is the number of hours in the full pay period, defined in the employee's records in the People feature; depending on whether the employee works in a pay group with a weekly, semi-monthly, or monthly pay frequency, the application pulls this number from different fields on the employee's records.
- Counts the number of business days (weekdays) in the full pay period.
- The number of business days can vary depending on when the pay period occurs, as well as the employee's pay frequency; for an employee with a monthly pay frequency, there will be a different number of business days in February than March, so if the employee was hired in the middle of February, the number of business days the application counts is different from if the employee was hired in the middle of March.
- Note: The application counts all weekdays as business days and skips all weekend days; currently, what the application considers a business day cannot be altered through configuration.
- Calculates the amount of hours per business day by dividing the normal amount of hours in the full pay period by the number of business days in the pay period.
- Determines the number of business days during the pay period the employee worked.
- Assigns the employee auto pay earnings that equal their pay rate multiplied by the number of business days they worked multiplied by the amount of hours per business day.
Clear the checkbox and the rule does not prorate the amount of auto pay employees earn; when employees are hired or terminated mid pay period, the rule pays them the full amount as if they worked the entire pay period.
Also, if the checkbox is cleared the rule does not prorate the earning amounts when employees change pay groups mid pay period; so if an employee working a pay group with a weekly pay frequency is switched to a pay group with a semi-monthly pay frequency after working three days in the first week of the month, the rule pays the employee their auto pay earnings for both the entire weekly pay period and the entire semi-monthly pay period. If the employee earned $1,000 in a weekly pay period of auto pay earnings and $1,750 in the semi-monthly pay period, the application would pay the employee $2,750 in auto pay earnings during the first half of the month, $1,000 for the first week when the employee belonged to the weekly pay frequency pay period and $1,750 for the semi-monthly pay frequency pay period.
In this case, payroll administrators or other users with access need to record a quick entry correcting the employee's auto pay earnings.
Enable mid-proration based on average daily hours
This checkbox enables proration based on days worked and average daily hours for employees who start work mid-period.
After this option has been enabled, the application uses the following equation to calculate prorated auto pay:
(Days Worked in the Pay Period x Average Daily Hours x Base Rate)
If the checkbox is cleared, the application uses the default calculation and prorates auto pay by evaluating days worked against total working days in the period.
Salary divisor for weekly pay frequency
Enter the number of weekly pay periods. Generally, you can enter 52 here. In some cases, 51 or 53 is more appropriate.
Salary divisor for biweekly pay frequency
Enter the number of biweekly pay periods. Generally, you can enter 26 here. In some cases, 25 or 27 is more appropriate.
Extend pay termination date to last pay edit date
Select this checkbox to extend the employee's termination date and associated auto pay calculation if a payroll administrator records adjustments or other pay entries after the original termination date.
Consider inactive statuses as pay termination
Select optional inactive statuses to be considered as terminated when calculating auto pay amounts.
Keep per pay period salary constant
Select this checkbox to base auto pay on the per pay amount instead of the annual amount configured in the People feature.
Apply employee default labor
Select this checkbox to override the auto pay's associated labor source and use the employee's default labor source.
Itemize Intra Pay Period Rate Change
This setting determines how earning statements for Auto Pay employees show changes to the earning rate in a pay period.
When this checkbox is cleared and there is a mid-period base rate change, the average rate is used to calculate earnings for the full pay period. The earnings calculated using this average rate are reported in the earning statement as a single line.
When this checkbox is selected, the base rate for each business day worked is applied and shown in the employee’s earning records. When the base rate varies between business days, each rate is displayed as its own line in the earning statement, resulting in multiple lines. If there are any Auto Pay reductions during the pay period, the average rate is applied to that portion of the pay period.
Enable mid-period proration by business day for Retro Calculation
Select this checkbox to enable functionality to ensure that when you make a mid-period salary change to a forecast pay employee, the application can apply mid-period proration by business day. This can be done by clicking Sync Pay Changes in the Quick Entry sub-tab in Payroll > Pay Run Management.