Longevity Pay - Creating the components

Longevity pay is based on years of service.   Within Caselle, the years of service are based on Hire Date.  Each employee must have the hire date filled.   Caselle also provide for the option ‘Additional Years of service’.   This feature may be utilized when an employee negotiates for additional years of service based on their previous work experience.  Base on this setup, ‘Additional years of service’ would affect the amount paid to the employee.

The table below will help to understand how to calculate the annualized amount.  This table is designed to help convert the calculation for a bi-weekly pay cycle to a corresponding annualized amount.   If the client pay cycle is bi-monthly, use the Annual Amount column (outlined in Red).

To create the necessary components to associate with the pay code, follow these steps:

Create the Table

1. Go to Payroll – Organization – Calculation table.
   
2. Click New  .
   
3. Add the title ‘Longevity’ to the field ‘Calculation table name:’.
   
4. Click Save   and select Yes to add the table.
   
5. Go back into Edit mode   and select the Longevity table.
   
6. Under the rates, create the breakdown of years for longevity pay.   Add the amounts under ‘Tax Amounts’.   See the table below:
   

Create the Calculation Formula

1. Go to Payroll – Organization – Calculation formulas.
   
2. Click New  .
   
3. Add the title ‘Longevity’ to the field ‘Calculation table name:’.
   
4. Add the formula below to the ‘formula:’ area:
   

Var1=EmployeeLengthOfService

Result=Table(Var1)

5. Click Save   and select Yes to add the table.
   
6. Exit  .
   

Create the Calculations

1. Go to Payroll – Organization – Calculations.
   
2. Click New  .
   
3. Add the title ‘Longevity Pay’ to the field ‘Calculation name’ and the title ‘Longevity’ to the ‘Abbreviated calculation name’ fields.
   
4. Click on the dropdown box for ‘Calculation formula’ and select ‘Longevity’.
   

5. Click on the dropdown box for ‘Calculation table’ and select ‘Longevity’.
   

6. Click on the dropdown box for ‘Pay code type’ and select ‘Gross Miscellaneous’.
   
7. Click Save   and select Yes to add the table.
   
8. Exit  .
   

Create the pay code

1. Payroll - Organization – Pay Codes
   
2. Click New   or copy an existing ‘Gross Miscellaneous’ pay code that is similar in nature with the correct ‘subject to’ taxes, retirement and SUTA.
   
3. Verify the type ‘Gross Miscellaneous’.
   

4. Select the Employee tab – Set the ‘Amount/Rate/Percent type:’ to Calculation and the ‘Calculation name’ to ‘Longevity Pay’.
   

5. Verify the ‘Used in Calculations’ pay codes are correct.
   

6. Click Save   and if applicable, select Yes to add the pay code.
   
7. Add the new pay code to the employees and verify the amounts on the first payroll to use this pay code.