# Pay Assignment Calculation Rules

## Calculation Logic

### Pay Assignments

Pay assignments are calculated using the following logic:

- Select the amount and AXP from the PB Salary table record that has the same salary index as the pay assignment and a date range spanning the pay assignment's Sal Index Lookup Dates.
Annualize the PB salary table selected amount based on the AXP. AXP = A; Multiply amount by 1 AXP = M; Multiply amount by 12 AXP = S; Multiply amount by 24 AXP = B; Multiply amount by 26 AXP = W; Multiply amount by 52 AXP = D; Multiply amount by pay assignment's number of days. If the pay assignments Days field is 0 or blank, then the value in the PB SETUP Days/Year field will be used. If that field is 0 or blank, then a default of 260 will be used. AXP = H; Multiply the amount by the pay assignments number of days and number of hours. If the pay assignment has 0 days or 0 hours, then multiply the amount by the value in the PB set up Hours/Year field. If that field is 0 or blank, then use a default of 2080. AXP = P; Multiply the amount by the derived periods. The periods are derived based on the PB pay assignment Perd Tp field.

PayAssignment

Perd Tp Conversion

A

Periods = 1

M

Periods = 12

S

Periods = 24

B

Periods = 26

W

Periods = 26

If the PB pay assignment Perd Tp field does not equal one of these values, then a default of 12 is used.

- Multiply the annualized salary amount by the pay assignments ratio percent (Rt%). If the pay assignment is attached to a salary index expressed as an hourly or daily amount, then stop processing. Otherwise proceed to step 4.
- Multiply the amount from Step 3 by the calculated date ratio. The date ratio is calculated by comparing the calculation dates of the pay assignment to the model calculation dates. The date ratio is the ratio of the time frame that the pay assignment's calculation dates overlaps the model's calculation dates. For example, If the pay assignment's calculation dates encompass ¾ of the model's calculation dates, then the pay assignment will have a date ratio of 0.75.
- Multiply the amount from step 4 by the PCN FTE.

### Percent Benefits

Percent benefits are calculated using the following logic:

- Determine the benefit to model ratio dates. These dates are determined by choosing the maximum begin date and the minimum end date from the model calculation dates and the benefit dates. Thus, if the model calculation dates were 01/01/03 - 12/31/03 and the benefit dates were 07/01/02 - 03/31/03, then the benefit to model ratio dates would be 01/01/03 - 03/31/03.
- For the pay assignment that the percent benefit is being calculated on, determine the pay assignment to model ratio dates. These dates are determined by choosing the maximum begin date and the minimum end date from the model calculation dates and the pay assignment Calc dates. Thus, if the model calculation dates were 01/01/03 - 12/31/03 and the pay assignment Calc dates were 07/01/02 - 06/30/03, then the benefit to model ratio dates would be 01/01/03 - 06/30/03.
- Determine the benefit to pay assignment date ratio. This is calculated by determining the amount of the dates derived in step 2 that is overlapped by the dates determined in step 1. Thus, for the example above, the benefit dates of 01/01/03 - 03/31/03 (from Step 1) overlap half of the pay assignment dates of 01/01/03 - 06/30/03 (from Step 2). So the benefit to pay assignment date ratio will be 0.5 (approximately).
- Multiply the pay assignment calculated annual salary by the benefit percent (divided by 100).
- Multiply the amount from Step 4 by the date ratio from Step 3.

### Flat Amount Benefits

Flat amount benefits are calculated using the following logic:

- Annualize the benefit by multiplying the amount by the appropriate value based on the benefit AXP. AXP = A; Multiply amount by 1 AXP = M; Multiply amount by 12 AXP = S; Multiply amount by 24 AXP = B; Multiply amount by 26 AXP = W; Multiply amount by 52 AXP = P; Derive the AXP based on the value in the PBSETUP Period Type field. The values for that field can be A, M, S, B, and W. Thus, for an AXP of P, the multiplier will be 1, 12, 24, 26, or 52.
- Determine the benefit to model date ratio. This is calculated by determining the amount of the model calculation dates that is overlapped by the benefit dates. Thus, if the benefit dates were 07/01/02 - 06/30/03 and the model calculation dates were 1/01/03 - 12/31/03, then since the benefit dates overlap half of the model calculation dates, then the date ratio would be 0.5.
- Multiply the amount from Step 1 by the date ratio from Step 2. Thus, if a benefit had an amount of $50 and an AXP of M and the date scenario from Step 2, the calculated benefit amount would be: $50 * 12 * 0.5 = $300.00

## How Benefits are Expensed

For the examples below the model calculation date range will be: 01/01/03 - 12/31/03.

### Example 1

$50 flat amount benefit with an AXP of M and a date range of 01/01/03 - 12/31/03.

Pay assignment A with a Calc date range of 01/01/03-12/31/03 and a calculated annual salary of $50,000.

Pay assignment B with a Calc date range of 01/01/03-12/31/03 and a calculated annual salary of $10,000.

The benefit's annualized amount will be $50 * 12 = $600.

The benefit dates to pay assignment date ratio is then calculated and the calculated annual salary is prorated by the date ratio.

Date ratio for the benefit dates to pay assignment A dates = 1.00000Date ratio * Calculated annual salary = $50,000

Date ratio for the benefit dates to pay assignment B dates = 1.00000Date ratio * Calculated annual salary = $10,000

Calculated annual salary sum = $60,000

Pay assignment A will receive 50,000/60,000 * 600 = $500

Pay assignment B will receive 10,000/60,000 * 600 = $100

### Example 2

$50 flat amount benefit with an AXP of M and a date range of 01/01/03 - 12/31/03.

Pay assignment A with a Calc date range of 01/01/03-12/31/03 and a calculated annual salary of $50,000.

Pay assignment B with a Calc date range of 01/01/03-06/30/03 and a calculated annual salary of $5,000.

The benefit's annualized amount will be $50 * 12 = $600.

The benefit dates to pay assignment date ratio is then calculated and the calculated annual salary is prorated by the date ratio.

Date ratio for the benefit dates to pay assignment A dates = 1.00000Date ratio * Calculated annual salary = $50,000

Date ratio for the benefit dates to pay assignment B dates = 0.50000Date ratio * Calculated annual salary = $2,500

(This is a key difference between example 1 and example 2. Since the benefit is only active for 6 months of the pay assignment B date range, then the flat amount benefit would only be paid to the employee for those 6 months. Thus, the value of the pay assignment is reduced by a value of .5)

Calculated annual salary sum = $52,500

Pay assignment A will receive 50,000/52,500 * 600 = $571.43Pay assignment B will receive 2,500/52,500 * 600 = $28.57

(Actual amounts may differ by a few to several cents due to date ratio rounding used in the example.)

## Additional Considerations

- An employee must have at least one active pay assignment to have their benefits calculated.
- For a PB vectoring record to be utilized by the calculation program, the value in the PB vectoring Post Code field must be written to the appropriate PB benefits records using the "Set Post To Code On PB benefit" utility.
- Pay assignments and benefits are prorated based on a date ratio. A date ratio is the ratio of the amount of the model calculation dates that is overlapped by the pay assignment or benefit date range. Thus, any partial year benefits or pay assignments that are to be expensed at a full year amount must have their date ranges "stretched" to equal the model calculation dates using the "Adjust Pay/Bene Begin/End Dates" utility.
- If the word DEBUG is entered into any PB pay assignment or PB benefits Misc field, then calculation debug information will be displayed for that record. The debug will be displayed regardless of the value in the
**PBSTRQ**Debug field. - The
**PBSTRQ**Debug field controls what type of debug information is displayed. If model import debug information or calculation debug information is needed, then this field can be used to trigger the display of information. This field is very useful when information on how a pay assignment or benefit is calculated is desired. Note: This field controls the display of debug information at a global level. See point 4 above about individual record level debug. - The PB pay assignment "Sal Index" value and "Sal Index Lookup Dates" value must be encompassed by a single record on PB salary table. For example, the PB pay assignment "Sal Index Lookup Dates" cannot span more than one salary table record on PB salary table. This is the same validation that takes place on the HR pay assignment pages in the HR system.