Module: Human Resources Applet: Diluted Pay Rates |
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Description: Diluted pay rates are for salaried people whose salary amount is divided by the number of hours worked in a given pay period. This option can be used in place of the standard average cost rate currently used for pay rate in Infocus. When labor is entered into time sheets, it first uses the average pay rate. After the time sheets for a given period have been submitted and approved, the pay rates utility for that period of time would be run. It will establish diluted pay rates for each day and person within that period. It will also go back and recalculate pay amounts for time sheets for the specified date range.
By default, when you establish a pay rate for a salaried employee (Human Resources / Employees / Job Titles Tab), the average pay rate is used (typically the annual salary divided by 2080 hours).
To recalculate rates for salaried employees with non-overtime time entry, the user can run the Diluted Pay Rates utility after timesheets have been approved. When calculated, the employee salary per period amount is divided by the number of hours worked (excluding overtime), and the resultant rate is then applied to timesheets.
For example, an employee earning $1,000/week would have an average pay rate of $25/hr based on a 40 hour work week. If, in a given work week, the employee worked 50 hours, the diluted pay rate would be $1000/50 or $20/hr.
Field Descriptions Below
Fields
| • | Employee - The lookup control allows the user to pull up an individual employee. |
| • | Start Date - The start date of the pay period to which diluted pay rates should be applied. |
| • | End Date - The end date of the pay period to which diluted pay rates should be applied. |
| • | Get Rates - Applies and displays the diluted pay rate for the date range selected. |
Note - This is done after the Calculate Diluted Rates tool is completed in the toolbar.