Gross Pay for Prior Period

As it will be possible to calculate gross pay for a period before the end of that period, there may be changes after a calculation of gross pay that affect the gross pay calculation.

Two types of changes necessitate the inclusion of gross pay for the prior period in the calculation of gross pay:

• If the termination date of an employee has changed compared to what it was at the time of the calculation of gross pay for the prior period, then the difference is included.
• If an employee was not included in the gross pay calculation for the prior period for the company and compensation model of the employee, then the additional days of the prior period will be included.

Example 1

Prior period is August 26–September 25 and gross pay is calculated September 15. Two days later, on September 17, the termination date of an employee is changed from September 20 to October 31. The calculation of gross pay for the subsequent period for this employee will then include the difference between a new gross pay calculation for August 26–September 25 minus the existing, approved calculation for August 26–September 20. (Note that this is not necessarily the same as calculating gross pay for September 21–25 as compensation agreements can have upper limits on percentage calculations.)

Example 2

Prior period is August 26–September 25 and gross pay is calculated September 15. Two days later, on September 17, a new employee is set up in Maconomy with employment start date the same day. The calculation of gross pay for the subsequent period for this employee will include gross pay for September 17–September 25.

Limitations

The calculations of gross pay and base salary rate only support compensation agreements with a pay period in months, such 1.0 month, not pay periods in days or hours.

The result of the calculations of gross pay and base salary rate is stored so that it can be reviewed, edited (manually or through import) and exported. However, changes to the calculated amount are manual since Maconomy does not re-apply logic such as recalculating the result for agreements that are percentages of other agreements when you change the result for those other agreements.