Actual Days/Hours Displayed Within a Pay Run

1. Log into your payroll platform.
2. Go to the relevant Employee File.  
3. Click on Pay run defaults page,
4. Configure the Hours per week and Hours per day applicable to that employee.
5. Tick 'Use standard business daily hours' and the system automatically pre-fills the 'Hours per day' field with the data from the Business settings > Details page.
6. Once this has been configured the system will use this in order to work out the maximum of hours to allocate each day, and for the week in total. 

Important:

If there are employees who work a non-standard work week, they should be set up using the 'Advanced work week' functionality. This will ensure that regardless of the business settings, the system will calculate the actual hours worked based on the individual employee work hours.

The system allocates working day hours starting on the business work week day, and then to weekends if there are hours remaining.

For example, an employee works 45 hours a week with 8 hours per day. If the business work week is Wednesday-Tuesday, then the employee work pattern is the following:

• Wednesday 8hrs;
• Thursday 8hrs;
• Friday 8hrs;
• Saturday 5hrs;
• Sun 0 hrs;
• Mon 8hrs;
• Tues 8hrs

In order to detail specific system calculations when determining actual days/hours worked, we will use a monthly pay run as an example. In this case, the pay period is 1/07/2023 to 31/07/2023.

Now, we will look at a few different scenario's when paying an employee full month salary

For businesses using 26 days to calculate ordinary rate

Example:
Employee works 8 hours per day, monthly salary is RM 5000.
The calculation is 8 (hours per day) * 26 (26 is number of work days each month) = 208 hours.
Hourly rate: RM 5000 / 208 hours = RM 24.03846
Salary: RM 24.03846 x 208 hours = RM 5000

For business using actual working days to calculate ordinary rate

Example:
Employee works 8 hours per day and Standard days per week for the business is 5 days.
System will count Monday to Friday as work days.
For period 01 /07/2023 to 31/07/2023, there are 21 work days.
The calculation is 8 (hours per day) * 21  = 168  hours. 
Hourly rate: RM 5000 / 168 hours = RM 29.7619
Salary: RM 29.7619 x 168 hours = RM 5000

For business using average working days to calculate ordinary rate

Example:
Employee works 8 hours per day and Stand days per week for the business is 5 days.
System will average number of work days in a month, i.e 5 days per week x 52 weeks / 12 months = 21.66667 days.
The calculation is 8 (hours per day) * 21.66667  = 173.33 hours. 
Hourly rate: RM 5000 / 173.33 hours = RM 28.84671
Salary: RM 28.84671 x 173.33 hours = RM 5000

If the employee has an advanced work week, the calculation will be based on the employee's working pattern regardless of the business formula to calculate ordinary rate, e.g. with the below pattern:

• Monday: 8 hours
• Tuesday: 5 hours
• Wednesday: 9 hours
• Thursday: 6 hours
• Friday: 9 hours
• Saturday: 3 hours
• Sunday
• Total for the week = 40 hours

The calculation ends up to be a total of 131 hours, purely due to the days included in the July 2023 pay run, and the advanced hours allocated to each of them.

1. Log into your payroll platform.
2. Go to the relevant Employee File.  
3. Click on Pay run defaults page,
4. For salaried employees the rate per hour within the pay run does not match the 'Equivalent per Hour' rate on the Employee file > Pay run defaults page.
5. This is because the rate on the Employee file > Pay run defaults page is based on the fact that the employee is configured to work 40 hours per week, and earn $5870 per month. So in that case, in order for them to earn exactly $5870 per month, the calculation is: $5870 * 12 / 52 / 40 = $33.86538. However, those figures are based on a 'standard' month which is 173.33 hours.
6. So, if the employee doesn't work exactly 173.33 hours in a monthly pay run, the system will adjust the hourly rate within the pay run to ensure their gross wage is still $5870 for the month.

Where will I see the updated hours/days displayed?

The updated hours/days will display in the pay slip, in the pay run and flow through to reports where hours worked are displayed.