Q: Would ADP use the exact same gross earnings that would be used for AWE? As an example, if an employee were to receive a quarterly bonus, would that get included in the gross earnings for ADP?
Due to the fact that OWP wouldn’t include a quarterly bonus, I am creating a second historical gross earnings import in our payroll software (for when employers migrate from their current software to our software) to cater for OWP but am wondering if this should only be a 4 week import or a 52 week import that would be used also for ADP or are we safe to use the current 52 week import that we use for AWE?
A: Yes I have always treated them as the same in regard to payments that form part of gross earnings.
There are three setting under OWP the default by law is always 1:
- Agreed rate – what was agreed in the employees employment agreement
- 4 week average – the week cannot be defined and the employees work pattern is not set
- Fix rate – a rate for OWP has been agreed and is used for OWP