Calculation Methods in Client Payroll Manager

The calculation methods are explained in detail below.  Four calculation methods are used with jobs only, and the remainder are used with activities only.

Calculation Methods for Jobs

Guaranteed Calculation Method

If a job step uses a guaranteed calculation method, everyone who works that job step is paid the guaranteed amount specified in the job step, regardless of the employee’s productivity.      Payment = (Hours)  x  (Guaranteed Rate) Note: This calculation method does not result in a subsidy; it simply sets the rate for the hours worked equal to the guaranteed rate.

Special Rate 

The pay rate for jobs using this calculation method is determined only by the special rate specified in the employee’s record.  You can think of a special rate as a guaranteed rate that can vary by employee.      Payment = (Hours)  x  (Employee’s Special Rate) Note:  If a special rate is not specified for an employee, the system will not permit the entry of a special rate job for that employee.

Piece Rate 

A piece rate calculation method is used when an employee is paid per unit completed.  The calculation is:      Payment = Pieces Completed  x  Prevailing Wage      Time Study Pieces The time study pieces are the number of pieces that a non-disabled person would be able to complete per hour.  This number is usually determined by performing a time study.  Suppose an assembly job has a prevailing wage of $7.00 and a time study rate of 100 pieces per hour.  If an employee completed 50 pieces, then the payment would be:      Payment = 50 Pieces  x  $7.00 = $7.00 $3.50                        100 Pieces Although the time study is presented in pieces per hour, the number of pieces completed by the employee are not a pieces per hour amount.  Whether it took the employee a half hour or two hours to complete the 50 pieces, the payment would still be $3.50 cents.

Regular Calculation Method 

The regular calculation method is based on the hours worked, the employee’s productivity and the prevailing wage for the job. The calculation is usually:      Payment = (Hours)  x  (Prevailing Wage)  x  (Employee’s Job Step Productivity) For instance, if an employee worked 3.0 hours at 75% productivity for a job where the prevailing wage is $7.25, the gross pay for the time record would be:      Payment = (3 Hours)  x  ($7.25 per Hour)  x  (0.75 Productivity) = $16.31 If there is no job step productivity for the employee, then the employee’s overall productivity rate will be used instead.      Payment = (Hours)  x  (Prevailing Wage)  x  (Employee’s Overall Productivity) If there is no prevailing wage rate specified for the job step, then the employee’s average hourly wage rate will be used instead.      Payment = (Hours)  x  (Average Hourly Wage Rate)

Calculation Methods for Activities

Activity calculation methods are slightly different from job calculation methods.  Although job steps are always paid, activity steps may be either paid or unpaid.  Regardless of whether an activity is paid or not, a calculation method will be associated with the step. Example:  An activity step that used the Vacation calculation method lets the system know that the time spent on the activity should be deducted from the employee’s vacation time.  Whether the time was paid or unpaid, the calculation method makes sure that the time is deducted from the employee’s vacation balance. When an activity is paid, the pay can be calculated in one of several ways:

• If the activity is set to pay based on the Average Wage Rate, the pay will be based on the following formula:

Payment = (Hours)  x  (Average Hourly Wage Rate)

• If the activity is set to pay based on the Employee Productivity and there is a productivity rate specified for the activity step, the pay will be based on the following formula:

Payment = (Hours)  x  (Prevailing Wage)  x  (Employee’s Activity Step Productivity)

• If the activity is set to pay based on the Employee Productivity and there is not a Productivity Rate specified for the activity step, the pay will be based on the following formula:

Payment = (Hours)  x  (Prevailing Wage)  x  (Employee’s Overall Productivity)

• If the activity is not set to pay based on the Average Wage Rate or the Employee Productivity, and if the activity step has a prevailing wage specified, the pay will be based on the following formula:

Payment = (Hours)  x  (Prevailing Wage)

• If the activity is not set to pay based on the Average Wage Rate or the Employee Productivity, and if the activity step does not have a prevailing wage specified, the pay will be based on the following formula: 

Payment = (Hours)  x  (Activity Wage Rate) Although the various options can seem confusing, they will make more sense as you become more familiar with the system. Vacation Calculation Method  Use this calculation if the pay code should result in a decrease in the employee’s balance of the vacation time.  The pay for this activity (if it is paid) is calculated according to the activity step settings. Sick Calculation Method Use this calculation if the pay code should result in a decrease in the employee’s balance of the sick time.  The pay for this activity (if it is paid) is calculated according to the activity step settings. Holiday Calculation Method This pay code is used for activities that represent an employee’s paid holiday.  Example:  Suppose that an employee does not need to work on July 4th, but is paid for that day at his average wage rate.  The agency can define an activity that uses the Holiday calculation method, and enter the holiday activity into the system.  The pay for this activity (if it is paid) is calculated according to the activity step settings. Note:  This calculation method is not connected to holiday premiums for employees who are paid extra from working on holidays.  Programmed Hours  Use this calculation if the pay code should reflect that the activity is programmed time.  Examples might include career counseling, physical therapy, or habilitation services.  The pay for this activity (if it is paid) is calculated according to the activity step settings. Nonproductive Hours  Use this calculation if the pay code should reflect that the activity is nonproductive time.  Breaks, lunch, and “no work available” time might be considered nonproductive time.  The pay for this activity (if it is paid) is calculated according to the activity step settings.  Absent Hours  Use this calculation if the pay code should reflect that the employee was absent from the facility during the time specified in the time record.  The pay for this activity (if it is paid) is calculated according to the activity step settings. Contract Rate Employees who are set up in the system as contract workers are paid for jobs at a contract hourly rate that can be unique for each contract worker.  By default, contract workers are paid for activities exactly the same as consumers are.  If you need to pay a contractor at his or her contract rate for an activity, you need to define an activity that uses the Contract Rate calculation method.  Then, when time is entered for the activity, payment will be calculated using the following formula:      Payment = (Hours)  x  (Employee’s Contract Rate)