Pay Grades
Pay grades describe the ranges of pay employees should earn for working certain jobs, and their associated positions. Managers use pay grades to determine if their employees are being paid appropriately. For example, if a pay grade defined for bank tellers ranges from $16 to $30 an hour, managers know that the employees working as tellers should be earning a pay rate within this range. Pay grades are optional but recommended.
Prerequisites
Your company must be set up to use the Compensation feature.
Tasks

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Navigate to the
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Click the Add Pay Grade button to add a new pay grade. To update an existing pay grade, click the pay grade name in Pay Grades table.
The Pay Range Details page opens.
- Type a unique Name for the pay grade.
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Select the appropriate Pay Type Group from the drop-down list.
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Select Hourly EE to define the pay grade rates in terms of hourly pay rates; Powerpay then calculates an equivalent annual salary, or;
- Select Salary EE to define the pay grade rates in terms of annual salaries; Powerpay then calculates an equivalent hourly rate.
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Type the Standard Hours per Pay applicable to this pay grade. This number is used in the calculation to convert rates to salaries and to convert salaries to rates.
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Select the Restrict Out of Grade checkbox to apply pay grade validation and prevent users from entering a rate change outside the pay grade Minimum and Maximum rate values. Powerpay displays an error message when users submit a rate outside the pay grade Minimum and Maximum rate values.
Clear the check box and Powerpay displays a warning message when users submit a rate outside the pay grade Minimum and Maximum rate values.
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Each pay grade must be configured with several rate values to describe the pay grade. For each pay grade you define the minimum, maximum and control. Type the Minimum, Control, and Maximum values for the position into the parameters. These are required fields.
Depending on the Pay Type Group the pay grade was configured with, you define either hourly or salary values.
For hourly employees, define the following hourly values:
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Minimum Rate. This is the lowest hourly amount someone working a position assigned the pay grade should earn. It must be less than or equal to the Control Rate and the Maximum Rate.
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Control Rate. This is the 'ideal' hourly amount someone working a position assigned the pay grade should earn. Not necessarily the mid-point between the minimum and maximum, this rate represents the amount the majority of employees working positions assigned the pay grade should earn. It must be greater than or equal to the Minimum Rate and less than or equal to the Maximum Rate.
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Maximum Rate. This is the highest hourly amount someone working a position assigned the pay grade should earn. It must be greater than or equal to both the Minimum Rate and the Control Rate.
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Rate Midpoint. The calculated hourly value ((Minimum Rate+ Maximum Rate))/2.
For salary employees, define the following salary values:
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Minimum Annual Salary. The minimum annual salary that may be assigned to a person for a specific position assigned to this pay grade should earn. It must be less than or equal to the Control Annual Salary and the Maximum Annual Salary.
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Control Annual Salary. The ‘ideal’ annual salary someone working a position assigned to the pay grade should earn. It must be greater than or equal to the Minimum Annual Salary and less than or equal to the Maximum Annual Salary.
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Maximum Annual Salary. The maximum annual salary that may be assigned to a person for a specific position assigned to this pay grade should earn. It must be greater than or equal to both the Minimum Annual Salary and the Control Annual Salary.
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Salary Annual Midpoint. The calculated annual value ((Minimum Salary + Maximum Salary))/2.
Powerpay calculates the Midpoint value of the rate, and converts the Minimum, Control, and Maximum values between their hourly and salary equivalents.
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- Click Save.
- Click Back.
- Repeat steps 2 - 8 to add more pay grades.

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Navigate to the
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Click the pay grade name in Pay Grades table.
The Pay Range Details page opens.
- Modify the pay grade as required. For information on each field see Define Pay Grades.
- Click Save.
- Click Back.
If the pay grade is assigned to a Job, Powerpay validates employee pay rates and timesheet exception rates to determine if they are within the modified Minimum and Maximum Pay Range values. If any of the pay rates and/or exception rates fall outside of the modified pay grade values, Powerpay displays a message.
When Restrict out of Range is selected, an error message displays and the modified pay grade is not saved.
If Restrict out of Range is not selected, a warning message displays and the modified pay grade is saved.

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Navigate to the
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Click the Trashcan icon to the right of the pay grade to delete.
- Click Delete.
Next Steps
The defined pay grades are available for selection on the following pages:
- Jobs & Positions, Job Details section. When a pay grade is selected for a Job, any positions created under that job have the Position Rate defaulted to the Control Rate of the pay grade associated with the Job.
- Employee Profile. If a pay rate is entered that is outside of the pay grade associated with a position’s job, Powerpay displays a message based on the Restrict out of Range field selection.
- Time Entry: Regular & Second timesheet, Manuals, and Reversals. If an exception rate is entered that is outside of the pay grade associated with a position’s job, Powerpay displays a message based on the Restrict out of Range field selection.
Pay Grades Page Field Information

The unique name for the pay grade.

Pay Range

- Select Hourly EE to define the pay grade rates in terms of hourly pay rates; Powerpay then calculates an equivalent annual salary, or
- Select Salary EE to define the pay grade rates in terms of annual salaries; Powerpay then calculates an equivalent hourly rate.
Pay Range Details Page Field Information

Pay Range

The unique name for the pay grade.

- Select Hourly EE to define the pay grade rates in terms of hourly pay rates; Powerpay then calculates an equivalent annual salary, or
- Select Salary EE to define the pay grade rates in terms of annual salaries; Powerpay then calculates an equivalent hourly rate.

This number is used in the calculation to convert rates to salaries and to convert salaries to rates.

Select this checkbox to apply pay grade validation and prevent users from entering a rate change outside the pay grade Minimum and Maximum rate values.
Powerpay displays an error message when users submit a rate outside the pay grade Minimum and Maximum rate values.
Clear the checkbox and Powerpay displays a warning message when users submit a rate outside the pay grade Minimum and Maximum rate values.

Each pay grade must be configured with several rate values to describe the pay grade. For each pay grade you define the minimum, maximum and control. Type the Minimum, Control, and Maximum values for the position into the parameters. These are required fields.
Depending on the Pay Type Group the pay grade was configured with, you define either hourly or salary values. For hourly employees, define Rate values. For salary employees, define Salary values.
Powerpay calculates the Midpoint value of the rate, and converts the Minimum, Control, and Maximum values between their hourly and salary equivalents.

This is the lowest hourly amount someone working a position assigned the pay grade should earn. It must be less than or equal to the Control Rate and the Maximum Rate.

This is the 'ideal' hourly amount someone working a position assigned the pay grade should earn.
Not necessarily the mid-point between the minimum and maximum, this rate represents the amount the majority of employees working positions assigned the pay grade should earn. It must be greater than or equal to the Minimum Rate and less than or equal to the Maximum Rate.

This is the highest hourly amount someone working a position assigned the pay grade should earn. It must be greater than or equal to both the Minimum Rate and the Control Rate.

The calculated hourly value ((Minimum Rate+ Maximum Rate))/2.

The minimum annual salary that may be assigned to a person for a specific position assigned to this pay grade should earn. It must be less than or equal to the Control Salary and the Maximum Salary.

The ‘ideal’ annual salary someone working a position assigned to the pay grade should earn. It must be greater than or equal to the Minimum Salary and less than or equal to the Maximum Salary.

The maximum annual salary that may be assigned to a person for a specific position assigned to this pay grade should earn. It must be greater than or equal to both the Minimum Salary and the Control Salary.

The calculated annual value ((Minimum Salary + Maximum Salary))/2.