This function allows you to split employee earnings by dimensions as a default setting for auto pay salaried employees. It means that you don’t have to manually assign dimension values individually for every pay run created. Within the pay run, the system will create separate earning lines in order to calculate the earnings split per dimension value. The earnings splits will then flow through to the payroll journals (depending on the journal service you have selected, as specified in Dimensions overview).
This feature is available to users on the Plus/Advanced plan where Dimensions are enabled. The earnings that can be split and the employees eligible to have earnings split is identical to the criteria for splitting earnings by location.
Getting Started
To configure how an employee's earnings should be split, follow the instructions below:
- Log into your Payroll Platform.
- Click on the employee you want to set the split for either from the dashboard view, or by going to Employee List.
- This opens their Employee Profile.
- Select Pay Run Defaults from the left hand menu.
- Click the Split Earnings button.
- Choose Split by dimension.
- A context panel will appear.
- You can now enter the percentage split required for the dimension you choose.
- It is important to click the ‘+’ icon before saving to ensure the last dimension value split is added.
- Only one dimension value per dimension can be selected in the earnings split.
- Click Save when finished.
- You can then also delete if you have made an error and change any thing you need.
If an employee has primary dimensions assigned, the primary dimension values will be included in the split configuration by default and will make up the remaining balance so that the splits total 100%.
Helpful Hints.
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The user can only split employee earnings by either location or dimension. So if one has been configured then the other option is disabled.
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To easily identify if a split option has been configured for an employee, a dimensions enabled or location enabled label will display to the right of the Split Earnings button.
What happens if an employee’s primary dimensions change?
When an employee’s primary dimensions are updated, the system automatically updates the old primary dimension values with the new primary dimension values and retains the existing remaining balance % associated with the old dimensions.
If an employee has more than one primary dimension value assigned and one is removed, the system automatically deletes the removed primary dimension value from the employee’s earnings split record. Any existing primary dimension values will remain as will the remaining balance % split already associated with the primary dimension earnings line.
When an employee’s primary dimension is removed altogether (remember this setting, unlike the primary location, is not compulsory) the percentage split record for that primary dimension value will remain by default.
Where an employee has an earnings split by dimension record and then primary dimensions are subsequently added to the employee’s file, the primary dimensions will be added to the existing record with a remaining balance percentage allocation. If the primary dimensions were not included in the existing earnings split record, the remaining balance percentage allocation will, in effect, be 0% as the existing allocation is already 100%. The record will need to be edited to reallocate percentage splits for the applicable dimensions.
If the employee's primary dimension is deleted (via Payroll Settings > Dimensions), the percentage split record of the now deleted dimension value will remain by default. However, it will no longer be treated as the primary dimension for the employee and as such will have a fixed % figure as opposed to the remaining balance being allocated.
Additionally, when pay runs are subsequently created and the deleted dimension value is still being used to split earnings, the dimension name will include 'deleted' in brackets to highlight that the dimension value has been deleted from the business.
If dimensions have been deleted in error, they can always be restored.
Any updates to an employee’s primary dimension values and therefore earnings split configuration will take effect in pay runs created thereafter. That is, the dimension change will not retrospectively override prior dimension values assigned to earnings lines in finalised pay runs.
Split earnings by Dimension Values in the Pay Run
When a pay run is created, the system will automatically split the employee’s earning lines per dimension value(s) using the percentage allocations specified in the employee’s configuration. From a location perspective, the employee’s primary location will be assigned to each split earnings (as per existing functionality).
The calculation split works by applying the percentage allocated per dimension value to the total hours worked by the employee. For example, an employee working 30 hours per week will normally have earnings in the pay run.
The employee’s earnings are then split by dimension value.
The employee’s earnings will then be split in the pay run.
Please note that split earnings will only be calculated on the employee’s default earnings. Split earnings by dimension values will not apply to:
- Earnings manually added in a pay run;
- Timesheet earnings;
- Expenses;
- Earnings associated to leave taken;
- Leave or any other earnings paid out as part of a termination;
- Recurring earnings configured via the employee’s Pay Rates or Pay Run Inclusions screens.