How to Use Pays Setup to Calculate Salary Differently for Salaried Versus Hourly Employees?

To use the pays setup option to calculate salary differently for salaried versus hourly employees, do the following:

1. Navigate to Maintenance > Workforce > Workforce Planning Setup.
2. Click the Compensation Items tab.
3. Click the Add icon. The Add Compensation Item page appears.
4. Go the Settings tab and select Apply Pay Plan.
   
   
5. For the Pay Plan option, select Pay Plan set against Employee Position. 
6. Click Save.

Note:

You can have a pay plan set by each employee as part of your employee file upload. These settings will make no difference for Salaried employees since the configuration task salary calculation basis is set to Equal Monthly.

But for Hourly, it will calculate salary based on the Calendar Days Pay Plan defined under Pays Setup.