Overall Gross Pay Calculation

The overall gross pay is determined by calculating the gross pay of a contact person for each compensation agreement for a given pay period, and then the results are stored for future calculations.

Only agreements marked for inclusion in gross pay are included, though in some cases, compensation for the prior period may be included (see below).

• For agreements with an amount, the gross pay for the agreement is calculated using the method above.
• For agreements with a percentage, the gross pay is calculated as the percentage of the total gross pay for the agreements belonging to the specified compensation group.

As mentioned above, it becomes possible to specify a simple rule for when to exclude an agreement from the gross pay calculation, namely agreements for which a specified percentage of the total gross pay for a group of agreements does not fall within a specified range.

Note: This calculation fails if there are circular references in the setup, such as a code A which is 5% of a code B which is 3% of code A itself, which cannot be resolved to an amount.

For percentage calculations, an upper bound can be applied, as specified on the agreement. As mentioned above, you can specify a simple rule for when to exclude an agreement from the gross pay calculation, namely agreements for which a specified percentage of the total gross pay for a group of agreements does not fall within a specified range.

When calculating the gross pay of an agreement as a percentage of the gross pay for agreements belonging to a group, you only compute the percentage for the periods where the effective period of the percentage agreement overlaps the effective period of each of the group agreements. This is done by scaling down the gross pay of the group agreement according to the percent of overlap between the two agreements. Here the pro rata method of the group agreement is used to decide the method for calculating the percentage of period overlap. The method for each pro rata method is as followed:

Method	Calculation
One	Overlap = 100%
Two	Overlap = F(E12)/F(E2)
Three	Overlap = C(E12)/C(E2)
Four	Overlap = W(E12)/W(E2)
Five	Overlap = W2(E12)/W2(E2)
Six	Overlap = C(E12)/C(E2)
Seven	Overlap = W(E12)/W(E2)
Eight	Overlap = W2(E12)/W2(E2)

Where E12 denotes the effective period of overlap between the percentage agreement and the group agreement, while E2 denotes the effective period of the group agreement.