Prorated Rates Application

Work periods can be configured to use prorated rates based on billing rates. Two types of proration can be configured, as follows:
  • Daily Prorated - Uses hourly thresholds to determine the daily rate paid to a worker.
  • Variable Prorated - Uses daily thresholds to determine the weekly rate paid to the worker.
The Daily Prorated settings include the following:
  • Minimum Threshold - Defines the minimum number of hours that a worker must submit before receiving the hourly bill rate. For example, for an 8 hour minimum, if a worker submits 6 hours, then they receive 75% of the hourly billing rate.
  • Maximum Threshold - Defines the maximum number of hours that can be submitted for the day. If a worker submits more that this number, they are not compensated for the additional hours.
  • Slope Modifier - Defines the rate for which a worker is compensated for hours submitted over the minimum threshold, but under the maximum threshold. This rate is applied inversely to the daily billing rate.
  • Super Maximum - Defines the number of hours that a worker must work in order to be paid any bonus above the daily rate.

For worker submitted hours, if the number of hours is less than the minimum threshold, then the rate = 0. If the number of hours is more than the minimum threshold, but less that than the maximum number of hours, then the rate is (Daily Rate/Slope Modifier)*(Hours Worked). If the number of hours worked is greater than or equal to the maximum threshold and less than the super maximum hours, then Rate = Daily Rate.

The Variable Prorated settings include the following:
  • Grace Days - defines the number of days that a worker can miss in a week, but still be considered for the full weekly rate.
  • Expected Work Days - The number of days expected to be completed for the full weekly rate.
  • Allow OT - Select to allow the application of overtime rules for the variable proration.
Grace days are only applied if a worker is associated for the full duration of the work period. For worker submitted days, if the number of days worked plus the grace days is less that the expected number of days worked, then (Days Worked/Expected Days Worked)*Daily Bill Rate. If the number of days worked plus the grace days is greater than the expected number of days worked, then the daily bill rate is applied.
Note: For monthly work periods, the Expected Work Days can be '1', which would mean that the worker would only have to work one day during the month to be eligible for monthly pay.