This page provides more information about the use of formulas when creating custom items. To learn more about custom items, go to:
Payroll Setup > Company Setup > Custom Items
To create a formula for a custom item, you should have already selected the type of custom item, given it a name and selected “Formula” from the Input Type drop down menu. An additional field will then appear:
- Enter a Formula by starting with an “=”.
- You can then also enter variables, numbers and basic mathematical operators such as +, -, *, /, and ( ).
Examples of basic formulas that could be entered in the Formula field are the following:
- = normal_rate * 40 * 25
- = (basic_salary + normal_pay) / 4.3333 * 0.3333
Variables which can be used when creating formulas are:
- basic_salary: Basic Salary (salaried employees)
- normal_pay: Basic Hourly Rate (hourly paid employees)
- normal_rate: Hourly Rate
- shifts_worked: Number of shifts worked
- total_income: Total income
- min: Used to select the lowest of the values in the list provided to it
- max: Used to select the highest of the values in the list provided to it
- ceiling: Rounds up the number in brackets to the nearest whole number
- For example: = ceiling(1.1) = 2
- floor: Rounds down the number in brackets to the nearest whole number. The number will always be rounded down regardless of the decimal point
- For example: = floor(1.1) = 1 or = floor(2.7) = 2
- round: The number in brackets will be rounded up or down depending on the decimal. This functions as per the regular rounding of numbers
- For example: = round(1.1) = 1 or = round(1.5) = 2
- weeks: This amount is determined using the configured pay frequency. (Weekly = 1, fortnightly = 2, and either 4 or 5 for monthly payslips.
- default_days_worked: For monthly employees, equal to their full days per week (Regular Hours) x 4.333. For weekly paid employees, full days per week (Regular Hours).
- For example: = normal_rate * days_with_leave_for_system_type(‘unpaid’). This would be the number of days taken with unpaid leave. Note: This considers days with unpaid leave, not days of unpaid leave.
Example 1: Levy |
An employer must make a contribution that is 0.32% of the employee’s hourly pay, with a maximum contribution of $4.26. Since there is a maximum, the formula must select the lowest of option (1) which is
$4.26 and option (2) which is the employee’s pay multiplied by 0.32%
= min(4.26, (normal_pay*0.0032))
Example 2: Trade Union deduction
An employee must make a contribution of 1% of their hourly pay, plus
$1.80. The minimum contribution is $9.13 and the maximum contribution is $16.73.
= min(16.73, (max(9.13, (normal_pay*0.01)))) + 1.80
General IF statements
The IF function returns one value if the specified condition is true and another IF false. The IF statement is also known as a logical formula: If, then, else. If something is true, then do this, else/otherwise do that.
The IF statement works as follows:
if (condition, true statement, false statement)
For example: Suppose that the company deducts a staff social fund contribution based on how much an employee earns. If the employee’s salary is greater than $1 000, then the contribution is $10, but if the employees earns less than $1 000, then the contribution is $8.
The formula will be written as:
= if (basic_salary>1000, 10, 8)
This means that if the basic salary is greater than 1 000, the result will be 10 and if it’s less it will be 8.
Nested IF statements
A nested IF statement is an IF statement within an IF statement. It works as follows:
if ( condition, true statement , ( if ( condition, true statement, false statement) )
For example: Suppose that the company deducts a staff social fund contribution based on how much an employee earns. If the employee’s salary is greater than $1 000, then the contribution is $10, but if the employees earns between $500 and $1 000, then the contribution is $8, and if they earn less than $500 it is $6.
The formula will be written as follows:
= if (basic_salary>1000, 10, if (basic_salary<500, 6, 8)
This means that if the basic_salary is greater than 1 000, the result will be 10. Otherwise, if the salary is less than 500, the result will be 6, otherwise it will be 8.