Worked Earnings

If an employee completes a contract without interruption, then by the end of the payment term, the employee has performed all of the contract work and thus earned the entire amount paid. However, if the employee does not complete the entire contract, you must know how much the employee has actually earned so that you can adjust the contract pay accordingly. This amount that the employee has actually earned is considered the worked earnings.

Worked Earnings Calculation Methods

The system provides two methods for tracking worked earnings:

• Actual divides the total contract pay by the number of work days in the contract to produce a daily rate for worked earnings.

  In pay periods with no unpaid leave, the worked earnings are the daily rate multiplied by the number of work days in the period. Because pay periods don't always have the same number of work days, the worked earnings vary by pay period.

• Prorate divides the total contract pay by the number of pay periods in the contract term to produce a pay period rate for worked earnings.

  In pay periods with no unpaid leave, the pay period rate is also the amount of worked earnings.

  The Prorate method uses the daily rate (the same daily rate that the Actual method uses) to reduce pay for unpaid leave and to allocate earnings for paid leave.

Determination of Actual Work Days

The system determines the actual work days in the contract term and in the pay period by looking at these three elements:

• The employee's work schedule: selected days of the week are work days.

• The school schedule: school breaks are not considered work days.

• The holiday schedule: holidays are considered work days unless the contract pay settings exclude holidays.

  Even though employees don't actually work on holidays, paid holidays are treated like paid work days for purposes of tracking the employee's actual earnings.