The hourly rate the the system calculates is based on all paytypes and cash benefits effective on the employee's compensation/deductions tab as of the date selected in the "Balances as of" field of the Accrue Attendance Expense wizard.

All of the paytypes and cash benefits that are effective will calculate an annual amount based on the rate of the paytype/benefit and the default hours assigned (if applicable). This is annualized based on the dates the paytype/benefit is scheduled to be paid and then an hourly rate is calculated based on this. The hourly rate used for the attendance expense accrual will then be the average of these hourly rates based on all of the paytypes/benefits effective.