RATES
Up to 99 employee rates can be utilised against an employee or by applying against payroll setting rate rules.
To define a rate directly against an employee, use Hourly rate replacement/R010-R990 in one of the following ways:
- As a cash amount per hour.
- As a company rate, which has been specified at company set-up time as a cash amount or as a rate calculated from another company rate. There can be up to 999 company rates specified for each company.
As part of the payroll settings, employee rates can be defined as a rate calculated from another employee rate, a company rate, or as one of the Automatic Basic Hourly Rate (ABHR).
They can also be associated with National Minimum/Living Wage (NMW) rates set by the UK government, and options are available to set in relation to the Living Wage and London Living Wage which are announced by the Living Wage Foundation.
Hourly-paid allowance can be configured with a basic rate and optionally up to 6 differing premium rules. The separation of base and premium (or non-productive time) is critical for employers in identify compliance with NMW law and also used for job costing and planning purposes.
At the start of each pay-cycle, SDWorx-Pay calculates all company rates, employee rates and ABHRs and uses the results, together with the hours entered to determine the allowance amounts for each employee.
Since calculated rates apply to all employees, it is not necessary to enter employee rate values for every employee. However, if you wish to define a rate value for an individual employee, you apply these using the appropriate rate engine code.
Note however, that a calculated rate value overrides an employee-entered rate value that uses the same rate data code.
Since employee rates can be derived from other employee rates, those rates on which other rates are based must be defined for all employees directly. If a rate refers to one of these and it has not been defined at employee level, Payroll Active assumes the referred rate to be zero for the purpose of calculating any subsequent rate.
If a calculated employee rate exceeds the maximum specified against payroll setup rules, or is less than the minimum specified, Payroll Active issues a warning message on the Exception Report and the maximum or minimum value is used. Note that this does not apply to the Automatic Basic Hourly Rates.
Overtime rates can be shown on payslips; this is specified against payroll settings. In addition, all rates held for an employee will be displayed on the employee’s Personal Record report.
AUTOMATIC BASIC HOURLY RATES
SDWorx-Pay allows you to have employees with an Automatic Basic Hourly Rate (ABHR), the formula is configurable within the payroll controls, it is then used to calculate a basic hourly rate at which an employee may be paid for the hours entered. This means that you do not have to manually calculate and enter a payment rate each time an employee’s salary is changed. The formula can contain a reference to basic hours by using Basic paying hours/E059 or Basic period hours/E058. Payroll Active holds the current and the previous ABHR (which is normally used for overtime that is paid one pay period in arrears). Two rates are defined at company set-up time to hold the two
ABHRs.
ABHR can be overridden for individual employees by using Suppress ABHR/E132.
GUARANTEED RATE
SDWorx-Pay can automatically calculate a guaranteed salary by referencing a Guaranteed Rate for hourly paid employees. If it is used, an employee will receive a guaranteed salary if calculated earnings are below the hours worked times the Guaranteed Rate. The Guaranteed Rate is set at company level as one of the existing company rates, employee rates, or NMW rates. You indicate which employees are to receive guaranteed rate payments with Guaranteed salary indicator/E200.
Allowance 19 is reserved for guaranteed salary payments.
Note:
- If you attempt to use any rate that is not set up, Payroll Active assumes zero.
- The following online reports can be affected as a result of setting and modifying rates:
- Exception Report
- Input Error Report
- Record Card
- Worked Hours Return
See
- EMPLOYEE, for the setting of basic period hours (used in the calculation of the ABHR).
| Name | Engine code |
| Hourly rate replacement | R010 – R990 |
HOURLY RATE AND WORKED HOURS PAYROLL ITEMS
| HOURLY RATE REPLACEMENT | R010 – R990 |
Use R010 – R990 to set or replace:
- One of the rates that is used as a basis for the calculation of other employee rates.
- A rate that applies directly to the individual employee, and is not a calculated rate.
Format 1
ppppppp
Where ppppppp is the hourly rate, in pence, up to 7 numeric characters.
Example
The hourly rate for rate 01, for this employee only, is £6.50:
R010 650 Format 2
CRnnn
Where nnn are 3 numeric characters between 000 and 999.
Example
The hourly rate for rate 03, for this employee only, is the company rate CR005. R030 CR005 Note:
- A calculated rate value overrides an employee-entered rate value that uses the same rate data code.
- If the rate entered is neither a value up to 7 numeric characters or a valid company rate,
Payroll Active prints ERROR- INVALID EMPLOYEE RATE VALUE on the Input Error Report.
If a valid but non-existent company rate is specified, SDWorx-Pay displays
ERROR
– COMPANY RATE DOES NOT EXIST on the Input Error Report.
- The employee rate is printed on the employee’s Record Card.
Last updated 9/5/2025 (PSP)