You must have one of the following to accurately calculate base pay. You cannot use the IRD summary alone

• Payslip clearly stating annual base salary

• Employer Letter/Contract confirming base salary or hourly rate and minimum hours per week.
  The employer letter cannot state average hours, it must be ‘minimum’

• 3x payslips that show the exact same amount of income every pay cycle - annualise this figure

• Payslips regularly showing ‘ordinary hours’ or similar wording. For example, if the payslip shows ‘Ordinary hours - 40 x $26ph’ and then all other payments are on top of things like bonuses, overtime, meal allowances etc, then we can take 40 x 26 = $1,040 per week or $54,080PA as the base pay

For this you will need

• 6 Month IRD summary (Note, they will NOT accept using half a 12 month or 6 of the 12 months added up. It must be a 6 month summary)

• Base salary already calculated
  
  This also requires that the client has spent 6 months with the same employer on their IRD.

  If 6 months are not completed, we can only use base salary.

  How to calculate

1. Take the base salary. For our example, we will use $80,000 gross per year. Divide by 2 to give us $40,000 for our example.

2. We take our figure from the IRD summary. In our example, let’s use $47,856.
   
   Important Note: This is not the figure on the first page of the summary. It is the figure under ‘salaries and wages’ for that employer.
   

3. The calculation is -

   (figure from IRD summary - halved base salary) = accepted overtime

   For our example - ($47,856 - 40,000) = $7,856

Co-op is very harsh on overtime.

Requirements

• Client has worked the role for 2 years

When the client is not on a permanent contract, we must use the average of the last 2 years income, according to their IRD summary to determine their income.

This doesnt have to be tax years, it can be 2 years from todays date.

It is not scaled further and is used at 100% in the calculator.

Not an ideal Co-op client, will complete this another time.