Award
From TrueERP wiki
Overview
The New Award button allows the User to create new awards specific to their own industry/business. An Award affects the rate of pay, deductions, and allowances, along with other aspects of a pay such as superannuation. Therefore please ensure you familiarise yourself with deductions and allowances etc, before creating new awards. Payroll Preferences is another key area to understand before proceeding to create new awards.
A specific Award can be attributed to an Employee from within the Employee card. The User must have Payroll Access to have the ability to load all the required settings for each employee.
How To Create a New Award
- Select the 'Payroll Tab'
- Select the 'New Award' Button
- Enter the Award name as required, e.g. 'IT Consultancy Award'
- Select the Department if required
- Select the Pay Period, i.e. Weekly, Fortnightly, Monthly
- Select the 'Super Type' from the dropdown, i.e. Percentage or Amount
- Enter the 'Super Value' in relation to the Super Type just chosen, e.g. 9%
- Tick to use the Default Super Threshold as per the Preferences set, or manually enter a Threshold for this Award
- Tick if you wish to 'Pay Super on Leave Loading' for this new Award
- 'Sick Days Leave Max" defaults to 8. This is the maximum accumulated accrual allowed (not the maximum per year).
Change to the relevent figure and if accumulated accrual is uncapped, leave blank.
'*Meal Break Hours' is a manual entry field, e.g. 1 hour meal break for this Award.
- 'Meal Break Threshold' loads automatically as per the Preference default setting.
- The Threshold relates to the number of hours the employee can work before taking a meal break, e.g. 4 hours work
between breaks. Change here if different for this Award.
- Select the Leaves Tab.
- Add Annual Leave, Sick Leave, and Long Service Leave as required.
- 'Accrue After' should be number "0" and period "Pay" unless you wish to set a waiting period before these Leave Types
start accruing for this new Award.
e.g. If you don't want Sick Leave accruing for the first month, then you would enter 4 in the 'Number' column due to the Company pay period being 1 weekly (it would be 2 if the pay period was fortnightly). Sick Leave will start accruing after 4 pay periods.
- 'Accrue' - the Hours required for the period selected (per hour, per pay or per week).
- Enter the Leave Loading rate. eg. 17.5%
- 'Accrue between Dates' allows you to set a date range for the accrual of any Leave Type associated with this Award,
e.g. accrue Sick Leave between 1/3/07 and 31/8/07. This would be used only if an accrual rate changes such as if an employee went from casual to permanent.
- Select the 'Classification' tab
- The first classification should be "Standard"
- Select the 'Type' from the drop-down list, e.g. Hourly Rate.
- Enter the 'Full Time' hourly rate, e.g. $30.00.
- Enter the 'Part Time' hourly rate, e.g. $35.00.
- Enter the 'Casual' hourly rate, e.g. $40.00.
- Enter the 'Casual Loading' (if applicable), e.g. 5.00%
- 'Advance to Next Level from Start Date/DOB' allows you to set an automatic progression for employees on this Award,
e.g. An apprentice may start on a basic pay rate but progress to the next Pay Rate Level after a certain time or a birthday.
- Create other 'Classifications', e.g. Advanced and Super Advanced.
- This will load into the 'Next Level' dropdown to enable selection, e.g. Employee's on this Award will be paid at the
'Standard' pay rate for the first 6 months of employment, then he/she will automatically progress to the 'Advanced' pay rate thereafter, until further pay rate increases are selected manually.
- 'Classification Allowances' is where you enter any Allowance that is to be available to any employee
on this award, e.g. Meal.
- Refer to Allowance for details on creating a new Allowance
- Select the Allowance from the drop-down list of pre-set allowances.
- Enter the Amount of the allowance
- Select whether the Amount is in $ or is a %
- Select from the drop-down list the basis of the allowance being paid, e.g. 'Pays'. Therefore every pay employees on
this award will also receive an allowance of $40.00 unless changed in the employees file.
- Select 'Classification Deductions'.
- Follow instructions as per 'Classification Allowance'.
- Refer to Deductions for details on creating a new deduction
- Select 'Classification Extra Pay Rates'.
- Select the Pay Rate from the drop-down list, e.g. Time ½ or Compensation.
- Select the 'Type' per pay rate, e.g. Time ½ is an Hourly Rate and Compensation is a Payout.
- Enter the number of Hours in respect to each Pay Rate, e.g. the Time ½ rate is to be paid for a 38 hour week and the
Compensation is a one off payment.
- Ensure the New Award you have just created is ticked as 'Active' (Active is the default setting).
- Select 'SAVE' to complete your New Award.
- The New Award just created will now be listed in your Awards List.
