A cost rate is the hourly rate that your company pays an employee or subcontractor for each hour of work, and is used to calculate costs in reporting and planning.
Cost Rates can be configured in Labor Categories, Projects, Project/Task Assignments, and on the Person Profile tab. Cost rates are almost always set up at an individual level, on the Person > List > List tab > Edit Pencil Icon > Profile > Rates tab. Cost rates may be the hourly rate of pay for your non-exempt employees or contractors, and may also be a derived hourly cost rate for your salaried employees. The derived hourly cost rate for salaried employees is often calculated as the annual salary divided by business hours in the year (typically 2080), or pay period salary divided by business hours in pay period. For example, pay period salary divided by 80 if the pay period is biweekly, or pay period salary divided by 86.667 if the pay period is semi-monthly.
The Project > List > List tab > Edit Pencil Icon > Time tab should typically be set to default the cost rate from the Person cost rate. On the Project > List > List tab > Edit Pencil Icon > Time tab, select Default to the person's cost rate from the dropdown menu for Cost Rate Source.
For best accuracy in various system calculations, cost rates should be entered in the Person Profile to 5 decimals, e.g., "54.32467."
A generic labor category cost rate can be used when users are not allowed to see individual cost rates, as confidential salary information may be easily derived from an individual's cost rate. Generic cost rates may also be used for planning or reporting purposes. This generally does not work if using Unanet Financials as costs will not be accurate.