Overview

For clients that have irregular hours/days employees, the divisor used to break down an average week of earnings can be different each week so relying on the Hours per Week from the employee details doesn't work for them and it is more useful for them to use an average over a given number of weeks. To achieve this, we have created a report called Employee Average Hours Report that will calculate the average number of hours an employee has worked over a given period.

To create the report:

1. Go to the Reports menu.
2. Navigate to Employee Reports and select Average Hours report.
3. The employer chooses a date and the number of weeks (between 2 – 52 weeks).
4. The hours from default pay categories (i.e. Permanent Ordinary hours, Salary etc) plus leave pay categories will be automatically included and the user can choose further pay categories if they wish to. Depending on what date is entered and how many weeks are entered the system needs to add up the total hours over that number of weeks (up to the end of the last pay period prior to that date chosen) then divide the total hours by the number of weeks. The hours to include in the calculation will be made up of the employee's default pay category plus any leave taken hours automatically plus any pay categories that are chosen in the Pay Categories drop down menu. As an example, an employee is set to Permanent Ordinary Hours and they have worked 110 hours over 4 weeks (as per the example below) so the calculation would be 110 / 4 = 27.5 average hours
5. They can choose one or more pay schedules (defaults to all if nothing chosen)
6. They can choose one or more employees (defaults to all if nothing chosen)
7. If an employee has not been paid for the full number of weeks selected, a warning will appear in the report next to the employee and the you can recalculate the average hours manually based on the warning.
8. The report can be run to screen or downloaded in Excel or PDF.

Once the user has derived the average hours for their employees, they will be able to apply these to the pay run for the employee when they take annual leave.

In the annual leave context panel you can override both AWE (Average Weekly Earnings) and OWP (Ordinary Weekly Pay) and enter the average hours to be used as the divisor to calculate the hourly rate from the average weekly instead.

1. The user can tick the override box which will open the field
2. Ticking the override box in the Average Weekly Earnings will also update the Ordinary Weekly Pay – 4 weekly formula to be overridden but it can be unticked for OWP if necessary or they will be able to put different average hours in each field.
3. They can enter the average weekly hours from the report

This will re-calculate the annual leave payment automatically