Incorrect Hourly Rate Calculation for PTO Discretionary Disbursement Retro Results

Summary:

We processed payroll for a terminated employee and noticed that the hourly rate calculated for the Cetera Paid Time Off Discretionary Disbursement Earnings Retro Results appears to be incorrect.

The employee’s details are as follows:

Annual salary: $79,821.00
Working hours: 33 hours per week
Salary frequency: Weekly
Hourly rate calculated by the system: $40.38

Based on the employee’s annual salary and weekly working hours, we expected the hourly rate to be calculated using the employee’s assigned 33 weekly hours. However, the system calculated an hourly rate of $40.38.

Could you please advise how the hourly rate is derived for this retroactive PTO disbursement result? We would also like to understand whether the calculation uses the employee’s standard working hours, assignment working hours, salary basis, annualization factor, termination date, or another value from the payroll configuration.