All results are rounded up if there is any number other than zero in the three decimal places after the last decimal. (For example, if a number is carried out to the third decimal place, it will be rounded up if any number in the fourth, fifth, or sixth decimal place is greater than zero.) All Client Payroll Manager calculations that could affect employee earnings are carried out to a minimum of five decimal places and then rounded up.
Earnings (including regular earnings, benefits, subsidies, overtime premiums, and holiday premiums) are carried out to the fifth decimal place and then rounded up to the second decimal. If the fourth, fifth, or sixth decimal place is greater than zero, the earnings are rounded up. For example: $15.32858 is rounded to $15.33, but $15.32000 is left at $15.32 because the fourth, and fifth decimal places are zero.
Wage rates can be entered and displayed to the second decimal place. Calculated wage rates are carried out to the fifth decimal place and then rounded up to the second decimal. If the fourth, fifth, or sixth decimal place is greater than zero, the wage rate is rounded up. For example: $5.32858 is rounded to $5.33, but $5.32000 is left at $5.32 because the fourth, fifth, and sixth decimal places are zero.
Piece rates are calculated to an infinite number of decimal places and then rounded up based on the number of decimal places entered in the Piece rate precision field in the Payroll System Options, Rates tab. This includes piece rates used to calculate earnings, as well as the piece rate displayed on screen and in reports. The piece rate will always be rounded based on three decimal places after the number of decimal places entered in the Piece rate precision field. For example, if the actual piece rate is 0.0647800120004 and the Piece rate precision field is set to 5, Client Payroll Manager will round up to 0.06479 because the 8th number after the decimal is greater then 0. If the Piece rate precision field is set to 9, Client Payroll Manager will set the piece rate at .064780012 because the 10th, 11th and 12th decimal places are all zero.
Productivity rates are entered and displayed as a percentage (35.356%). They can be entered to the third decimal place when entered as a percentage.
Productivity rates are stored in the database as a decimal (.35356) and all rounding calculations are based on the decimal format. (This is important to note when writing Crystal reports that display the productivity rate or use it in a calculation.) Calculated overall productivity rates are carried out to the fifth decimal place and then rounded up to the third decimal. If the fourth, or fifth decimal place is greater than zero, the productivity rate is rounded up. For example: .17205 (17.205%) is rounded to .173 (17.3%), but .17200 is left at .172 (17.2%) because the fourth, fifth, and sixth decimal places are zero.
The calculations used to find piece rates, wage rates, earnings, and productivity rates are designed to ensure that an employee’s earnings are always based on a true prevailing wage, as required by the Department of Labor (DOL) and the NISH guidelines. In the NISH “FLSA Special Minimum Wage Requirements Guide,” the examples for prevailing wage calculations clearly show that both prevailing wage and average hourly rate should be rounded up to the nearest $.01.
The DOL fact sheet, “The Employment of Workers with Disabilities at Special Minimum Wage” (ESA/Wage an Hour Division Fact Sheet No.: 39), contains the following statement to explain an example of how to calculate prevailing wage:
“Note that in this example the prevailing wage rate is $5.92411, but the employer rounded it up to $5.93 per hour. If the employer rounded to $5.92, he or she would be establishing a prevailing wage rate that is less than the true prevailing wage rate (less by $0.0041 per hour). The Wage and Hour Division will not normally question computations that are carried out to the fifth decimal point and then round up to four decimal places. The employer could, of course, round up (but not merely round off) sooner. For example, .04974 should be rounded to .0498 or .05.”
While the fact sheet suggests that a piece rate precision of five is sufficient, Vertex suggests you work with your local DOL auditor to determine the correct number to use for piece rate precision at your agency.