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How PeopleSoft Does Calculates Holiday Hours during Paysheet Creation.

Monday, February 25, 2013

Question : How PeopleSoft Does Calculates Holiday Hours during Paysheet Creation?

Answer:

You setup Holiday Calendar with holiday hours as shown in the below screen shot. For Example for New Year, the holiday hours are set as 8 Standard Hours.

If you are using Payroll for North America for US, you will select Standard as the Holiday Type as this value designates a U.S. holiday.


In this example , I am assuming that you are using Holiday Hours to be controlled by HR Paygroups and Job (not through Time & Labor Rules). Also you are using Semi Monthly Payroll as shown below :


Now, let’s say that you have the 2 Job Codes , one for Full Time Employee and another for Part Time employee with Standard Hours Set to 86.67 for each of this job codes and Semi Monthly as the Work Period.

Part Time Job Code Setup:


Full Time Job Code Setup:


Now let us hire employees into these job codes. We will hire one full time employee into FT job code and another part time employee in PT job code. Set the Standard Hours as shown in the screen shot. i.e. FT will have 86.67 and PT will have 40 hours.

FT Employee:


PT Employee:



Let’s create paysheet for this employees. Run Create Paysheet process for First payroll of the year so that New Year Holiday comes into paylines. Here are the paylines for FT and PT employee:


FT employee has full standard holiday hours which is 8 hours. However the holiday hours for PT employee is only 3.69 hours.



Now Let’s step back and look at the delivered funtionality for PeopleSoft Holiday Hours calculation.

PeopleSoft Delivered Logic for Holiday Hours:

If EE's are not full-time, then the system will calculate the holiday hours by using the standard hours of the employees, divides this by the number of standard hours on the installation table (or job code, if different) and then multiplies it by the hours on the holiday calendar table. 

So, For FT employee, here’s how PS calculated:

Formula will be :

(STD Hours for EE on Job ) / (STD Hours for EE on Job Code ) * Holiday Hours setup = Holiday Hours on paysheet

For FT Employee:

(86.67 / 86.67 ) * 8 =  8

For PT Employee

(40 / 86.67 ) * 8 = 3.692  = 3.69
 

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