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

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.