Piece
Rate Calculations
The system can be set up to award your employees
with a set amount of pay based on the number of
finished pieces. This is done by creating Piece
Rate Calculations.
- Click on the main "Admin" tab
at the top of the screen, and then on the
"Pay Codes" link located under the
Policies
section of the screen.
- Under the Premium
Pay Codes section of the screen, click
on the [ADD PREMIUM] icon.
- In the Pay
Code section of the screen, enter the
desired information. Ensure that "Premium"
is selected in the Type field.
- Enter the desired Application
Type, Effective
Dates, Rules,
etc.
- In the Pay
Type section of the screen, select
"Pay Rate Formula." The "Build
Formula" link allows you to create a
formula using the [ ( ], [ ) ], [ * ], and
[ + ] icons. Create formulas using the "Quantity"
operand. Click on the [VALIDATE] icon to check
the formula.
- Once your formulas have been set up, click
on the [CREATE] icon to save the Premium Pay
Policy.
You must assign the created Premium Pay Policies
to your employees in order for them to take effect.
The following are examples of formulas for Piece
Rate Calculations.
| Piece Rate |
Formula |
| "Flat Rate"
per-piece |
((QTY * A)
+ (B * HOURS)) |
| "Flat Amount"
per X pieces |
((QTY * A)
+ B) |
| "Employee Rate" |
((QTY * A)
+ ([Employee Rate]
* B * Job Hours)) |
| "Employee QTY Rate" |
([Employee
Rate / Pay Level]
* A * QTY) |
Piece Rate Calculation Examples
- An employee gets paid $1.00 for every piece
completed. "1.00" is entered into
the Premium
Policy Amount field, and the following
formula is created: (1.00
* Quantity).
Note:
If multiple Quantities are assigned to the
Job, the specific Quantity must be selected
from the drop-down menu.
- An employee receives $4.25 an hour, as
well as $1.50 per completed piece. The following
formula is created ((4.25
* Job Hours) + (Quantity * 1.50). The
employee works 32 hours on the Job, and completed
100 pieces. The system awards the employee
with $286.00.
Note:
Wages in a formula are taken from the Premium Policy
Amount field. When creating a formula
like the one above with more than one wage
specified, enter the first wage into the field
and select "Premium Policy Amount"
from the drop-down menu. The specified wage
is entered into the formula. You can now change
the setting in the Premium
Policy Amount field for the next wage.
- An employee gets paid an "Employee
Rate" using the following formula: ((Quantity * .90)
+ (Employee Rate * 1.1 * Hours)). The
employee's rate is $12.50 per hour, and a
total of 39 hours was worked with 427 completed
pieces. The employee made $920.55.
Related Topics
This topic is specific to the Piece Rate Calculation
setup only. See Premium
Pay Codes for full instructions on this screen
and its features.
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