In Payroll Set-up > Earnings and Deductions, when you select an allowance in the Earnings tab, the application displays the Stop Payment Method drop-down list in the General tab. The Stop Payment Method drop-down list is cleared by default, and you can select one of the following options:
Full Stop In First Period
Select this option and the application stops calculating the allowance for any pay run in which the employee is on sick leave or parental leave. It continues to calculate the allowance once the employee has a pay run in which there is no parental or sick leave.
Full Stop In Next Period
Select this option for the application to calculate the allowance in full for the first period in which the employee is on sick leave or parental leave, but to stop calculating the allowance for any subsequent periods in which the employee is on leave. It continues to calculate the allowance once the employee has a pay run in which there is no parental or sick leave.
Partial Payment by Calendar Week
Select this option for the application to generate a prorated amount for the days in which the employee was not on sick or parental leave based on a seven-day workweek that includes holidays.
The application divides the number of days in the pay period outside of when the employee was on leave by the total number of days in the pay period and multiplies this by the original amount of the generated earning. The formula is as follows:
(weekdays worked / total weekdays) x earning amount
For example, an employee in a monthly pay group is on sick leave from Monday 4 June, 2018 to Friday 8 June, 2018. The number of days in the month minus the sick leave is 25 and the total number of days is 30. If the amount of the generated allowance is originally £100, the application performs the calculation (25 / 30) x 100 and generates £83.33.
Partial Payment by Work Week
Select this option for the application to calculate a prorated amount for the days in which the employee was not on sick or parental leave based on a Monday to Friday workweek that includes holidays.
The application divides the number of weekdays the employee worked by the total number of weekdays in the pay period, and multiplies this by the original amount of the generated allowance. The formula is as follows:
(weekdays worked / total weekdays) x earning amount
For example, an employee in a monthly pay group is on sick leave from Monday 4 June, 2018 to Friday 8 June, 2018. The number of weekdays where the employee worked in the pay period is 16 and the total number of weekdays in the period is 21. If the amount of the generated allowance is originally £100, the application performs the calculation (16 / 21) x 100 and generates £76.19.
Partial Payment for Standard Pay Period Hours
Select this option for the application to generate a prorated amount for the days in which the employee was not on sick or parental leave based on average daily hours and normal work hours in the employee's HR record. The application uses the following formula:
(average daily hours x total weekdays) / normal work hours) x earning amount
Each part of this formula is defined as follows:
- Average daily hours is the number in the Average Daily Hours field in the employee's HR record.
- Total weekdays is the number of weekdays that the employee worked in the pay period (that is, the days where the employee was not on leave).
- Normal work hours is the number in the following fields in the HR record, depending on the employee's pay frequency:
- For monthly and semi-monthly frequencies, this is the total of the Normal Semi Monthly Hours (Top) and Normal Semi Monthly Hours (Bottom) fields.
- For weekly and 2 weekly frequencies, this is the number in the Normal Weekly Hours field.
- Note: If an employee does not have the required fields defined in their HR record, the application does not stop the allowance.