In this guide, we cover the calculation of average hourly pay (KTA), reporting, reviewing the calculation bases, checking the calculation formulas, and salary type management in salary history information in the Netvisor salary model template "Technology Industry, Hourly Pay".
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KTA calculation in Netvisor
This guide is based on the average hourly pay calculation formulas existing in the Netvisor salary model template "Technology Industry, Hourly Pay".
The program calculates the average hourly pay in the background of payroll during each payroll process. The program can interpret the calendar and understand the change of quarter in the calculation of average hourly pay.
You can view the salary type formulas by selecting Pay > Payroll > Salary model management > Technology Industry, Hourly Pay > salary type formulas.
In the KTA calculation formulas, there are two different salary types for each quarter: "KTA Quarter" and "KTA Condition".
"KTA Quarter" is a salary type that collects selected salary types for the calculation of average hourly pay in euros and hours quarterly.
"KTA Condition" is a salary type that compares the average hourly pay value calculated by the KTA Quarter salary type to the employee's hourly pay. If the value of the KTA Quarter salary type is less than the employee's hourly pay, the salary type directs to use the hourly pay.
KTA reporting by person
The average hourly pay by person can be reported from payroll reports using the "salary type statistics".
You can open the view by selecting Pay > Reports > Payroll reports > Salary type statistics.
When taking the KTA report, it is important to review the report from the correct time period!
the report should be taken from only one pay period
the report should be taken from the pay period following the KTA calendar quarter
Example of report
If you want to report KTA 1, which is from the period 1.1.2022-31.3.2022, then you retrieve the salary type statistics from the pay period starting 1.4.2022.
If the report is retrieved from multiple pay periods, the incorrect KTA information will be the sum of all average hourly pays from the pay periods included in the time period. If the report is taken during the reporting KTA quarter, for example, from the pay period 1.3.-31.3. included in the KTA calculation for the 1st quarter, the calculation is not yet ready for reporting and the result is not correct.
You can limit the search to report specific individuals by selecting a particular salary model or report only one person by selecting the name directly from "employee".
Select the desired salary types from the dropdown menu by activating the desired rows. When reporting average hourly pay, select the desired salary types from the following:
"KTA 1. Condition"
"KTA 2. Condition"
"KTA 3. Condition"
"KTA 4. Condition"
Select the salary type according to which quarter's average hourly pay you want to report. The order number of the KTA condition always refers to the quarter from which the average hourly pay value is calculated. KTA 1. Condition refers to the period January-March, KTA 2. Condition to April-June, etc.
NOTE! The KTA values for different quarters shown in the report are always the accumulated average hourly pay from the most recent corresponding quarter. For example, if all four KTA conditions are reported in April, the program will bring the previous year's values to the report for KTA 3. and KTA 4., because the reporting year has only temporally passed from KTA 1. and KTA 2. period.
Once the search criteria for the report are given, press the Show report button.
Note, if the report is not generated, also select "Show non-reportable salary types".
In this example, we are now examining the situation in April 2022, where KTA 1. Condition shows the calculated ready average hourly pay value from January-March.
Even if the "KTA 2. Condition" salary type was included in the search criteria, it would not yet show the correct average hourly pay value, because it is only April. KTA 2. will update to show the correct value when April-June has passed and the first pay period is calculated in July, and a new report is taken then.
Payroll accountant view
You can see the average hourly pay of an individual employee from the payroll process on the "payroll accountant view" tab.
Click the Details icon at the end of the completed payslip.
Select the "payroll accountant view" tab.
Examining KTA calculation bases
The bases for calculating the average hourly pay can be checked from the Salary type statistics report.
You can open the view by selecting Pay > Reports > Payroll reports.
The report shows the total sums of different salary types' balances in hours and euros.
Select the period for the report as the entire quarter for which the average hourly pay calculation bases are to be examined, as the report aims to show the entire earnings accumulation from a specific time period. Limit the date range according to the end date of the pay period.
Salary types can be selected either all or alternatively only those that affect the calculation of average hourly pay (thus shortening the listing).
Select the "salary type statistics by person" tab from the opened report. From this report, you can see the hours and euros used as the basis for calculating the average hourly pay by salary type.
In the example, the salary types affecting the calculation of average hourly pay for the employee in January-March are time work earnings and evening allowances.
Time work earnings euros = accumulated euros
4993.60 €
Time work earnings hours = hour divider
320 h
Accumulated euros / hour divider = KTA
4993.60 € / 320 h = 15.61 €/h
The KTA 1. Condition shown on the previous report matches the manual verification calculation, with a value of 15.61 €.
Checking KTA calculation formula
The salary types used in the calculation of average hourly pay can be checked from the salary model formulas if necessary.
You can open the view by selecting Pay > Payroll > Salary model management > Select the salary model to be used > Salary type formulas tab > Salaries and allowances.
Select "KTA 1. Quarter" as the salary type to be checked.
Detailed information can be opened from the pencil/notepad icon on the right side of the salary type row. The opened view shows which salary types are linked to the calculation formula of this salary type. It is noteworthy that each quarter has its own salary type with its own calculation formula. In this view, the calculation formula can be edited if necessary. When making changes, it is good to note that all four "KTA Quarter" salary types are identical in their calculation formulas, only "Period start" and "Period end" differ in the salary type calculation formulas.
KTA salary types in salary history information
Salary history information can be added with the amounts and unit prices of salary types for the calculation of average hourly pay.
You can open the view by selecting Pay > Settings > Payroll settings > Salary history information.
Frequently asked questions
Which salary types are used in the KTA calculation formulas for each quarter?
In the KTA calculation formulas, there are two different salary types for each quarter: "KTA Quarter" and "KTA Condition".
What does the "KTA Quarter" salary type do?
It is a salary type that collects selected salary types for the calculation of average hourly pay in euros and hours quarterly.
What does the "KTA Condition" salary type do?
It is a salary type that compares the average hourly pay value calculated by the KTA Quarter salary type to the employee's hourly pay. If the value of the KTA Quarter salary type is less than the employee's hourly pay, it directs to use the hourly pay.
From which period should the KTA report be taken?
The report should be taken from only one pay period and from the pay period following the KTA calendar quarter.
What happens if the KTA report is retrieved from multiple pay periods?
In that case, the KTA information will incorrectly be the sum of all average hourly pays from the pay periods included in the time period.
What happens if the KTA report is taken during the reporting KTA quarter?
The calculation is not yet ready for reporting and the result is not correct.
What do you do if the KTA report is not generated?
Also select "Show non-reportable salary types".
Where can you see the average hourly pay of an individual employee in the payroll process?
You can see it by clicking the Details icon at the end of the completed payslip and opening the "payroll accountant view" tab.
How is the KTA calculation date range limited on the Salary type statistics report?
The date range is limited according to the end date of the pay period.
What is the difference between the calculation formulas of the "KTA Quarter" salary types for different quarters?
All four "KTA Quarter" salary types are identical in their calculation formulas, only "Period start" and "Period end" differ in the salary type calculation formulas.
Keywords: Netvisor, average hourly pay, KTA, KTA calculation, Salary type statistics, Technology Industry, Hourly Pay, salary models, payroll, KTA Quarter, KTA Condition, salary type formulas, salary history information, payroll accountant view
This article has been translated using an AI-based translation tool. The contents or wording of these instructions may differ from those in other instructions or in the software.