Tanda's Wage Compare feature checks what an employee would have earned under a different employment classification. There are a number of use cases, the most common are:

  • Confirming that an individual flexibility agreement (IFA) contains sufficient entitlements compared to the relevant Award or Enteprise Agreement

  • Confirming that an annualised salary is sufficient to cover the entitlements of an Award or Enterprise Agreement, such as overtime and penalty rates

  • Confirming that an enterprise agreement covered employee is being paid the same or more than the relevant Modern Award

  • Confirming how many penalty or overtime hours have been worked for outer limits purposes

How it works

Wage Compare generates a report showing what an employee would have been paid under a different employment classification. The report uses the employees actual timesheets to provide a comparison between their actual payroll classification and the Wage Compare classification.

Enabling wage compare

To enable Wage Compare in your account, navigate to Settings > Feature Management. Once enabled, you will see a 'Wage Compare' tab in employee profile profiles.

Creating a Wage Comparison

  • To create a Wage Comparison, open an employee profile and navigate to the Wage Compare tab. Click the plus (+) button to create a new comparison

  • Enter the award, employment type and level of the classification you want to compare to

  • If you are looking to backtest previous timesheet periods, set the 'Effective From' date to match the beginning of your comparison period

Note: because Tanda will begin re-calculating all historical timesheets in the background, it can take up to 15 minutes from saving the comparsion to when the report is ready to run.

Running the Wage Comparison report

To run the Wage Comparison report, navigate to Reports > Wage Comparison.

Only employees with a Wage Comparison configured will appear. For the period filtered, you will be able to compare the Timesheet Cost (what is being paid) vs the Comparison Cost (Wage Compare Set up).

In the example above, we paid the employee a salary of $1,153.85 for the period selected, and under the equivalent Full-Time set-up, they would have earned $1,439.64 This suggests they were paid $285.80 less for the period than they would have earned as a full-timer.

Outer Limits or Penalty Hours and Overtime Hours Worked

Some Modern Awards require employees to be paid for penalty rate hours or overtime hours that are worked beyond an "outer limit" each pay or roster cycle.

Tanda can perform the outer limits calculation. For those employers who want to run the outer limits calculation, there is further configuration available on the employee profile when creating the employee's Wage Comparison.

Clicking View outer limits settings brings up some extra fields to configure.

The "outer limits" vary by Modern Award, and some awards let employers set them for each employee. Once you have referred to your relevant Modern Award to determine the outer limits for your employee, enter the limits you wish to test against here.

In terms of Averaging cadence, as with the outer limits, each award may have a different cycle or period that the outer limits must be tested against. For instance - the Hospitality Industry General Award refers to a 'roster cycle'. To account for the ambiguity across awards you may set up the limits to be tested against a pay cycle, overtime averaging period or other.

Selecting pay cycle or overtime averaging period will have Tanda look to the configuration for the employee in question to generate the testing outcome.

Selecting other will offer some more options for when you choose to test against a different cycle perhaps like the 'roster cycle'.

The cycle length is the period of time you are conducting the test over, and the anchor date is where the cycle begins (e.g. the date the roster cycle begins).

When the above is configured you can export the outer limits test in spreadsheet format by pressing the Download Compared Costs button when in Wage Comparison reporting.

Within the export Tanda will accumulate the costs you would have to pay - aligned to the applicable award rate specified in the wage comparison set on the employee profile, and only after the employee's configured outer limits are exceeded. In the example below we set the limits for both penalty hours and over time hours at 5. Note that the penalty hour costs only begin accumulating once the 5 hour limit has been reached.

For customers who have configured an employee's wage compare profile to test against Tanda's templated Hospitality Industry or Restaurant Industry Mondern Awards, weekday penalty rate hours will not count towards the outer limit if worked before midnight. This is consistent with the relevant award terms.

The outer limits top up you may be required to make is at the bottom of the Total Outer Limit Penalty Cost and Total Outer Limit Overtime Cost columns for each employee. You can take this number and make an easy top up via the process found below.

How to 'top up' an employees pay

If your award/EA suggests an employee's pay must be 'topped-up' in the event that their annualised salary works out to be less than what they would have been paid if they were paid overtime and penalty rates, or in the instance of outer limits payments, you can use a simple allowance in Tanda as a method to add this top up payment.

To set up an allowance for this purpose:

  • Navigate to Compliance > Customise Your Setup > Allowances

  • Click '+ New Allowance' to create an allowance

  • For type of allowance, select manual allowance and for What rate is it paid at? select specific cost and enter a specific cost of $1 (Note: You can name this allowance whatever you like depending on how you would like it to appear in Tanda and on payslips. You can learn more about creating allowances here).

Once the allowance has been created, check the Wage Compare report to see which staff are currently being paid less than their compared cost (shown in red).

To add the allowance, head to the employee's timesheet. Unapprove the last shift in the timesheet, and click 'Add Allowance.' You can now enter the Cost Difference into the units field and then click save.

For outer limits, you may want to have an allowance for each type e.g. Penalty Hours Outer Limits Top Up and use these to split out the two types of top ups you may be managing.

FAQ's and Troubleshooting

Will wage comparisons impact what is exported to payroll?

Setting up a Wage Compare will not impact the interpretation of timesheets that are sent to your payroll system. The calculations are only presented in the Wage Compare report, and will not show on timesheets.

Can I modify permissions for who run run the wage comparison report?

Yes. If you head to Reports > BI Reporting you can adjust which of your permission levels can view the wage compare report. Click on the Wage Comparison Report under Built-in Reports and you can assign which native permission levels can access the report. For more information on permissions check out our article here.

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