How to set up salary grades in Microsoft Forecaster

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Salary Grades are used to group similar employees for budgeting purposes. Salary, Overtime, Bonus, Hours, Headcount and Benefits data associated with each employee is calculated based on the employee's Salary Grade. Every employee is associated with a Salary Grade. When entering an employee into the Human Resources tab, the employee is first assigned to a Salary Grade. After the Salary Grade is assigned, the relevant Human Resources data can then be entered.
Pay Types must be set up prior to setting up Salary Grades. For instructions on how to set up Pay Types, see article 962591 - How to Set up Pay Types.
  1. Select Budgets from the Setup Menu.
  2. Select Human Resources.
  3. Select an Input Set in the Human Resources dialog box and click OK.
  4. Click on the Salary Grade Tab.
  5. Click on the Insert icon on the toolbar and enter the number of Salary Grades to create.
  6. Define the following for each Salary Grade:

    Salary Grade: Enter a unique alphanumeric ID up to 24 characters. Do not use spaces or Special Characters.

    Description: Enter a Description for the Salary Grade. This is often the description of the category of employees assigned the Salary Grade.

    Pay Rate: Enter a default Starting Annual Salary or Hourly Pay Rate for employees with this Salary Grade. This amount can be changed for individual employees in the Human Resources tab of the Data Input window. You may also enter a 0 if you don't want to define a default salary

    Note: If you create a Pay Rate for an Hourly Employee, remember to check the Hourly check box for that entry in Human Resources Setup.

    Bonus Account: To record bonuses for employees with this Salary Grade, enter a valid posting-level Account ID or double-click on the Bonus Account cell to display a list of accounts from which to choose. If you do not pay bonuses, you may leave this field blank. If you pay bonuses but do not separate bonus pay from salary, enter the same Account ID as the Salary Account.

    Bonus %: To calculate bonuses as a percent of salary, enter the default Bonus Percent here. Microsoft Forecaster will multiply the salary of each employee in this Salary Grade by this percent to arrive at a total bonus amount and then book this amount to the Account specified in the Bonus Account field. The bonus amount for individual employees can be changed in the Human Resources tab of the Data Input window.

    Bonus Amount: If you budget bonuses as a fixed dollar amount, enter a default Bonus Amount in this field. Microsoft Forecaster will book this amount to the Account you specified in the Bonus Account field. The bonus amount for individual employees can be changed in the Human Resources tab of the Data Input window. If you have specified a Bonus %, it will it will automatically override any Bonus Amount you enter in this field.

    Accrue Bonus: This only applies if you have specified a bonus percent. Check the Accrue Bonus box to indicate that a percentage of the employee's total salary will accrue over time according to the bonus %.

    Bonus Period(s): To specify the default Periods in which Bonuses are paid, double-click on this cell to open the Bonus Periods window.
    • Confirm the Bonus Percent or Amount displayed
    • If you wish to spread the bonus evenly over selected periods, check the Spread Evenly box, then check all periods during which a Bonus is to be paid.
    • If the bonus is not to be spread evenly over periods, un-check the Spread Evenly box and enter the % or Amount of Bonus to be paid in the appropriate periods. The Total must equal either 100% or the total amount of the Bonus Amount.
    • Click OK to accept your changes
  7. % Change: Enter the average Salary or Pay Rate Percent Increase for this Salary Grade.

    Increase Period: Specify which Period the Increase will take effect.

    % Change 2: To specify a Second Increase for this Salary Grade, enter the average percent Salary or Pay Rate for the increase.

    Increase Period 2: Enter the Period in which the second increase will take effect, if applicable.

    Hourly: Check the Hourly box if all employees with this Salary Grade are paid on an hourly basis. This check box signals to Microsoft Forecaster that the amount designated in the Pay Rate field is an hourly rate. Microsoft Forecaster will multiply the pay rate by the number of hours defined for the period to arrive at an FTE or Full Time Equivalent salary amount for budgeting.

    Note: Microsoft Forecaster allows you to view employee Salary Grade Allocations in Hours, FTE or Mixed based on your preference on the Human Resources tab of the Data Input window.

    Spread Method: You can define a Spread Method to calculate the manner in which the percent of an employee's Salary Amount total is to be spread across your budget periods. You must create and select User-defined Spread Methods anytime you require something other than an even spread. Click on the pull-down menu a list of the User-defined Spread Methods available in Microsoft Forecaster.
  8. Associate at least one Pay Type with each Salary Grade. See article: How to Associate Pay Types with Salary Grades for instructions on associating Pay Types with Salary Grades.
  9. Click Save to save any changes.
Related Articles:
962591 - How to Set up Pay Types
962498 - How to Associate Pay Types with Salary Grades

Article ID: 962590 - Last Review: 01/16/2015 18:00:50 - Revision: 2.0

  • Microsoft Forecaster 7.0
  • kbnosurvey kbarchive KB962590