Remuneration is what payroll is all about, so it's big.

In Umana, the Remuneration Module figures out how much to pay an employee. It is used internally by other modules.

Other types of remuneration such as benefits, premiums, bonuses, are covered in other topics.

Business Process

Your company probably has salary scales — negotiated as part of your collective agreements. Even non-union environments usually have some kind of salary scale structure.

• They will be dated providing for annual cost of living increases.

• Salary scales may also provide for seniority increases as well — often defining a series of pay grades and a mechanism for grade advancement.

So in a typical year, a employee might get two raises:

1. An annual cost of living increase, base on the collective agreement.
2. A seniority or performance raise, as the employee moves to the next grade, until reaching the top level.

Pay scales

Salary scales in Umana can specify either fixed rates, or a salary range. Both are based on the employee's job, grade, etc. In a union environment, these will be defined in your collective agreement.

RATEs are determined by an employee's JOB, not by their POSITION

1. Fixed rates

With a fixed rate scale, the employee's job, category, grade, (etc), precisely determine the employee's hourly rate.

• Common for blue-collar, non-management jobs.
• Usually defines an hourly rate

2. Salary range (bracket)

Like fixed rates, salary brackets are structured by job, category, maybe grade, etc. For each bracket there is a minimum and a maximum salary (instead of a fixed rate)

• These are more common for management jobs
• The employee's pay is based on their performance evaluation and placed within the bracket for their job/etc.
• How the employee fits within his bracket, is typically measured by the Compa-ratio = employee's rate divided by the midpoint of the bracket.
• Cost of living increases tend to be a percentage of the previous year's rate, and get applied to each employee individually.

"Red-circle" employees

Red circle employees are your exceptions — employees paid at a different rate or outside the bracket.

On the Umana JOBHIST window you can override rules by checking the red circle box.

Salary and rate information in Umana

Here is where pay rates are kept in Umana.

1. Your RATE table holds your pay rates
   (Fixed rates or brackets. From your collective agreement)
   These are effectively your rules.

2. Employee's Employment History record JOBHIST
   (Employee's status at each point in time: regular job, grade, and hourly rate)
   The employee's normal pay rate is part of the his dossier.

3. Employee's earnings for each hour worked TIMEDT
   (Hours paid, rate, and amount, by date and job)
   Their gross pay.

The basic flow is:

RATE table JOBHIST TIMEDT

Let's look at each of these in more detail

1. The RATE table

The rate table holds your pay scales, typically from your collective agreement.

• How to View and update RATEs.

• The RATE table structure — how rates are organized there, and how to configure it.

2. JOBHIST: Employment history

JOBHIST holds your employees' history over time, from hire to raises to termination: Their status, home department, job, grade, salary, etc. Every time it changes a new "movement" is created with the effective date of the change. See:

• Employment history module
• Salary fields on JOBHIST and how they are interrelated.

Step 1: RATES JOBHIST

When you enter a new movement in an employee's JOBHIST, the rate is taken from the RATE table, according to the date, his job, his grade, etc.

• For cost-of-living increases, you will first update the rate table. Then you use the Apply New Rates wizard to create movements in JOBHIST for employees.

3. Gross pay = Attendance Detail (TIMEDT)

When an employee works, a transaction in TIMEDT is created with the date, the hours worked, the job, etc. Their hourly rate comes from their JOBHIST.

Step 2: JOBHIST TIMEDT

When hours are added into TIMEDT, the current rate from JOBHIST is applied — with many exceptions.

With exceptions:

• Overtime. In Umana, the pay code can specify a multiplier to apply to the JOBHIST rate for time-and-a-half, double-time, etc.

• An employee might be paid at a different rate when performing a different job. The hourly rate is typically is a combination of their usual rate, and that from the rate table for the job performed — depending on your rules.

• Premiums may apply by shift. There can also be premiums for having a specific certification, or acting a a lead hand.

Retroactive pay

Employees are paid using the rates in TIMEDT. Rates can be adjusted manually there until the pay is finalized.

If a new rates are entered into your rate table late — typically due to contract negotiations dragging on — Umana can compare rates used in TIMEDT to the new rates in the rate table, and create retroactive payments for the difference.