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Overview
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.
Key Concepts
| • | 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. |
| • | To recalculate rates for salaried employees with non-overtime time entry, the user can run the Diluted Pay Rates utility after time sheets 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 time sheets. |
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.
Additional Toolbar Options
The Diluted Pay Rates toolbar gives the user (if given appropriate permissions) the capability to calculate diluted pay rates.
| • | Calculate Diluted Rates - By clicking the button, a pop-up will ask for information to calculate diluted pay rates. More on the Calculate Diluted Pay Rates pop-up. Diluted pay rates are pay rates calculated for salaried employees over a given pay period. These rates are based on the number of hours for the period. |
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