Understanding WFM Salary Calculations
Workforce Management makes employee salary calculations to reflect the actual cost of a salary worker day-to-day. While salary costs are the same week to week, the value of their work can change depending on how much or little they work on each day and during the week. If salary costs are equal on each day the value of work done on days where they work longer is actually less.
For example, if an employee works 12 hours on 3 days of a week and then 7 hours on the last 2 scheduled days of the week, then the value of their work on the 12-hour days is effectively less on the 7-hour days.
WFM calculates salaries by dividing the weekly salary into an hourly rate depending on the number of hours scheduled or worked that week.
Here are some examples:
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An employee is paid $1,000 per week and they work 45 hours in a week. Let’s use the example that the salary is fixed each day ($1,000/5 days = $200/ day) so if they worked 12 hours on day 1, the hourly rate for that day is $16.6667 ($200/12 hours.) If they then work 7 hours the next day, their hourly rate is $28.57 ($200/ 7 hours.) This means that on one day their work is paid at $16.67 per hour and the next day they are at $28.
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Let’s use the same example of an employee who is paid $1,000 per week and works 45 hours in a week. The system works out the weekly average hourly rate for the salary employee to $22 per hour for the week ($1,000/ 45 hours.) So, when the employee is scheduled on for the 12-hour day, the system calculates the shift to be $264 for that day ($22 x 12 hours.) The next day is a 7-hour shift and this is calculated to be $154 for the day ($22 x 7 hours.) In this instance, the employee’s hourly value is consistent during each shift while showing at a higher level the weight of the hours they work monetized to give a more accurate wage figure which is consistent with hours worked.
Overtime for Salaried Employees
Salaried employees with an overtime rate set will have any hours worked after their hours per week value calculated at overtime.
For example, an employee is paid $1,000 per week and is paid overtime when they work more than 38 hours at a rate of $39.47. If they work 40 hours, WFM will set their weekly cost as $1,078.94 ($1,000 + 2($39.47)).
Higher Rates on a Public Holiday
If you pay your salaried employees a higher rate of pay on a public holiday and have set up a public holiday rate on their wage details, WFM will add the cost of the public holiday to their weekly wage.
For example, Aaron is rostered to work 9 a.m. to 5 p.m. on Monday to Friday with a 30-minute break on each day. Aaron's weekly Salary is $1,000 and he is paid $39.47 when he works on a public holiday. If a holiday is set at 7.5 hours, then the shift is costed at 7.5 hours multiplied by $39.47, giving a total cost of $296.02.