How do I produce a minimum wage report?

Modified on Tue, 10 Dec at 3:09 PM

Within Cintra iQ, you can now report on Minimum Wage on a payroll period basis for salaried and time work employees. This is useful if you want to check the following:

If any salaried employees are being paid below minimum wage due to salary sacrifice or working extra unpaid hours that exceed their contract.
How any hourly paid employee's rate compares against their minimum wage rate.
How an hourly paid employee's salary sacrifice and unpaid hours are defined within a pay reference period.
How the hourly rate paid for employees performing timed work (i.e. paid by the hour for the actual hours they work) compares against the relevant minimum rate for their age/apprenticeship status.

Minimum Wage hours are made of the following:

Time when the worker is at the workplace working (may include time asleep)
Time employee is required to be available for work (on-call etc.)
Time spent travelling for business (not commuting)
Time spent training.

About the Minimum Wage Report window

The Minimum Wage Report displays where employees fall below the minimum wage rate. It checks the total pay received in the period against the hours worked. The report displays the data used to arrive at the rate of pay, and highlights any employees who are below the minimum wage.

You can filter the report to display all employees or only those below minimum wage by selecting the desired option at the bottom of the window. You can also archive the report, email it, save it to a local location and/or print it out.

Go to Cintra iQ: Payroll> Payroll Tools> Payroll Reports> Minimum Wage Report

Note:

You can view the current statutory rates within Cintra iQ via Payroll Payroll Setup Statutory Rates Minimum Wage Levels.

Columns

Name	Description
Employment ID	The employment ID taken from the employee's Employment Details record.
Name	Name taken from the employee's Personnel Record.
Basic Contracted Hours	This is the hours as stated on the employee's contract for the payroll period calculation.
Other Paid Hours	This column displays the paid hours derived from the applicable Addition headings. They are the extra paid hours aside from the regular hours.
Additional Unpaid Hours	This column displays any extra hours that are unpaid, such as the hours taken to commute to a job. This does not impact the Effective Hourly Rate.
Effective Hours	This column displays the hours the employee has worked for that pay period. This is derived from Payments and Rates.
Pay in Period	This column displays the amount the employee has actually earned within the pay period.
Deductions From Pay in Period	This column displays any deductions derived from the applicable Deduction headings, which are for items used for work. (e.g. Uniforms). This will reduce the pay. Note: To set deductions, you need to ensure the Reduces Wage for National Minimum Wage option is selected in the relevant Deduction heading's Other tab.
Effective Pay in Period	This column displays the amount of pay the employee received within the pay period.
Effective Hourly Rate	This column displays the amount of hourly pay that is currently being paid to the employee. This is derived from the Effective Pay in Period divided by the Effective Hours.
Over Minimum Rate	This column highlights whether the employee's rate is over the minimum wage. Note: If a check box is left blank, then you need to follow up as to why the employee's pay is under minimum wage.
Minimum Rate Used	This column displays what Minimum Rate category the employee falls under. Living wage, Age 16-17, Age 18-20 etc. Note: You can view the current statutory rates within Cintra iQ via Payroll> Payroll Setup> Statutory Rates> Minimum Wage Levels.
Exclusion Reasons	This column displays the exclusion reason, which can impact the minimum hourly rate.

How are hours calculated for minimum wage?

Salaried employees:

Standard pay reference period hours (e.g. a month or a week), will be established by taking (in this order where available):

The annual contracted hours as specified on the employee’s work pattern record and divided by the periods in the year (disregarding work pattern).
The weekly contracted hours x 52 x contracted weeks in year/weeks in year as specified on the employee’s work pattern record and divided by the periods in the year (disregarding work pattern).
The annual hours as established from the work pattern and divided by the periods in the year.

Time Work employees:

Paid hours will be summed from any units x rate payment headings flagged as being included for hours in the minimum wage calculation.

Important:

Absence payments and SSP payments are ignored in the Minimum Wage calculation.

Within Cintra iQ, you can now report on Minimum Wage on a payroll period basis for salaried and time work employees. For more information about the Minimum Wage Report, see What is the Minimum Wage Report?

Before you begin...

Before you begin to run the Minimum Wage report, decide whether each payment and/or deduction heading needs to be included in the Total Minimum Wage pay.

To include an addition and/or deduction heading

Set up the Addition Heading for an Employee in Post Payment with the following:
1. Select the Addition increase pay for National Minimum Wage Calulation option.
2. Enter the desired Minimum Wage Premium Rate Devisor. This keeps the minimum wage premium at the standard rate.
  
  Note:
  
  This option is used for Time Work (paid by the hour for the actual time worked) employees only. For more information, see the What is a minimum wage premium rate devisor? section below.
  
  Go to Cintra iQ: Payroll> Payroll Setup> Adjustments> Addition Headings> Employee in Post Payments definition> Other Tab
Set up the Deduction Heading for an Employment Standard Deduction, for items used for work e.g. Uniform deductions, by ensuring that the Reduces Wage for National Minimum Wage option is selected. Go to Cintra iQ: Payroll> Payroll Setup> Adjustments> Deduction Headings> Employment Standard Deduction definition> Other Tab

Note:

You can run the Addition Headings report to view which payments are not paid, non NI-able or non-taxable and if they impact the National Minimum Wage calculation. Go to Cintra iQ: Payroll Payroll Setup Adjustments Addition Headings. Click the Reports button and then run the report. Then use this information to create your Minimum Wage Report. If you do not want the addition heading to impact the report, return to the addition heading and ensure that the Addition increase pay for National Minimum Wage Calculation option is unselected.

If the payroll calculation is made and the the employee falls below their minimum wage rate on the particular Addition Heading, a payroll calculation exception is generated.

How do I create a minimum wage report?

Navigate to the Minimum Wage Report - Select Payroll and Period form.
Go to Cintra iQ: Payroll> Payroll Tools> Payroll Reports> Minimum Wage Report
Select the desired Payroll.
Select the desired payroll period date for the Report results, if necessary.
Click the Next button.
Select the Only Show Employees Earning Under Minimum Wage option, if necessary.
Click the Next button. The Minimum Wage Report appears.

What is a minimum wage premium rate devisor?

For Time Work employees only, premium pay cannot be included in the pay for minimum wage.

Important:

If an employee receives double rate pay for working on a Sunday, this additional premium cannot be used to offset the lower hourly pay received when working Monday to Friday.

Any premium factor must be removed for Time Work employees. In order to do this, each payment heading can have an optional ‘premium factor’ held against it. This will be used to factor pay back down to the basic level.

Important:

A payment heading used to pay overtime at time and a half will have a premium factor of 1.5. Therefore you have to enter the premium factor as 1.5 if the overtime is at the 1.5 base rate.

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