How do I determine relevant/contractual pay?

Modified on Tue, 10 Dec at 3:10 PM

You can calculate an hourly rate or daily rate at which to assign to holiday pay. This rate is based on the average rate of pay accumulated over several historical periods.

When calculating the average rate of pay, Cintra iQ considers:

The number of historical periods required. Twelve weeks is the default period on which to base your calculation, but it can be changed. When an individual has not been employed for the full period set, the calculation takes into account the number of existing periods of pay associated to the individual.
Relevant pay for each historical period.
Number of contractual hours/days within each historical period.

Note:

For more information, see How Do I Set Contractual Hours/Days?

To obtain the employee's holiday rate based on the average pay, Cintra iQ divides the total relevant pay, by the total number of contractual hours for the number of weeks/periods as set up in the payroll.

Note

Closed payroll periods: The average holiday rate calculated only takes into account closed payroll periods. You can determine Relevant Pay for the holiday rate calculation by performing the following:

Step One - Include addition headings

Relevant pay can be overtime only for salaried payroll, or it could include basic pay and overtime for a non-salaried payroll.

Navigate to the the Holiday Pay Settings window.
Go to Cintra iQ: Payroll> Payroll Setup> Adjustments> Holiday Pay Settings
Select the desired Payroll. The Addition Headings that are part of the calculation appear in the Include in average holiday rate calculation pane.
Add or remove non relevant Additions if necessary, by clicking the double back arrow, single back arrow, single forward arrow, or double forward arrow buttons.
Click the Apply button to save. You are now ready to set the Premium Rates.

Step Two - Set Premium Rates

For those addition headings that contain premium rates such as overtime, the holiday rate premium divisor allows you to reduce the premium rate back to its basic rate. The basic rate will be used as the holiday rate.

To reduce the holiday rate premium divisor

Note

If you do not wish to change the amount used in the calculation rates for premium rate addition headings (e.g. overtime), leave the value as 1.

Navigate to the the Holiday Pay Settings window.
Select the desired Payroll.
Select the desired Addition Heading in the Include in average holiday rate calculation pane.
Click the Premium divisor field associated to the heading.
Change the divisor value.
Click the Apply button to save.

To include an addition heading in contractual pay

Navigate to the the Holiday Pay Settings window.
Go to Cintra iQ: Payroll> Payroll Setup> Adjustments> Holiday Pay Settings
Select the desired Payroll. The Addition Headings that are part of the calculation appear in the Include in average holiday rate calculation pane.
Click the Count towards contractual pay check box next to the desired Addition Heading.
Click the OK button to save and close the window.

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