1. Update Pay Rates manually for an individual employee
You can update the pay rate for an employee using the Staff Database and clicking on the Pay Rates tab
To change an employees pay rates, select the Effective Date and enter the Annual Salary, Standard rate, Overtime 1 rate ,Overtime 2 rate, Overtime 3 rate and Overtime 4 rate and Narrative then click the Change Pay Rates button. This will keep a history of the previous rates and will ensure that the right pay rate is used to calculate the wages due, even if the change was in the middle of a wages payment period.
The effective date must be later than the last effective date already listed. Eg. In the example above, the Effective Start Date for a new pay rate must be after 1/4/2017.
Do not just update an existing entry if there's have been a change in the pay. This could result in the wrong pay rate being used for wages calculations. Only update an existing entry if you've made a mistake whilst recently adding or changing the pay rates.
2. Update Pay Rates for all active employees after a change to the National Minimum Wage
When the National Minimum Wage rates change, you'll have to review and update the pay rates for anyone below the new rates
a. Firstly, entry the new Minimum rates in to the system using Tools -> Minimum Wage Rates
Currently there are 5 rates https://www.gov.uk/national-minimum-wage-rates and these should be entered as :-
1. Apprentice Rate (No Age Upto , Tick in the Apprentice column)
2. Band 1 Eg Under 18 ( 18 in the Age Upto column, No Tick in the Apprentice column)
3. Band 2 E.g. 18 to 20 ( 21 in the Age Upto column, No Tick in the Apprentice column)
4. Band 3 E.g. 21 to 22 ( 24 in the Age Upto column, No Tick in the Apprentice column)
5. Band 4 E.g. 23 and over ( 999 in the Age Upto column, No Tick in the Apprentice column)
b. Now, update the Pay Rates for all staff on the minimum rates
Once you've entered the new Minimum Wages rates, you can automatically update the rates of all employees whose standard hourly rate is at the old minimum to the new minimum.
You can also choose to automatically update the Overtimes rates 1, 2 3, and 4. The process will update these rates with the difference between the current standard rate and the current overtime rate
Eg. If the current standard rate is 8.91 and the overtime 1 rate is 9.11 (+20p) and the overtime 2 rate is 9.31 (+40p) , applying a new minimum rate of 9.50 will also update the overtime 1 rate to 9.70 (+20p) and the overtime2 rate to 9.90 (+40p). In the example shown above, OT3 and OT4 rates will not be changed
The process will not update the rates of anyone who's not on an a minimum rate.
To start the process Click the Update Pay Rates from the Minimum Wage Rates screen. This will show the Update Pay Rates screen as shown below.
Leave the Update option un-ticked and list the List Pay Rate Changes button. This will show the employees who's rates will be changed (bottom half) and also those who's rates will not be changed (top half) by this process
Review the lists .You can double click to open the Staff Database for the employee.
To apply the updates, tick the Update checkbox and now click the Update Pay Rates button.
The process will run and create a new set of pay rates.