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Title: Dilution with raises that occur mid-period

Brief description:

In Unanet, a new Person cost rate must begin on the same day as the Dilution Period Begin date. When dilution is turned on, Unanet requires that you line up the raise begin date with the dilution period begin date. When raises occur mid-period, however, you can still get the correct dilution cost with the solution below.

What’s covered in this document:

Solution

Create a rate entry in the Person Profile that represents the blended rate. See example below.

Example:

George Bush has a cost rate of $39.14/hour and his company uses a Weekly time period set up, beginning on Sunday. Starting on 1/1/2013, Jack Thomas gets $15/hour. 1/1/2013 is a Tuesday, not equal to the time period begin date.

(Click to enlarge)

As the administrator:

  1. Inspect George Bush’ Person Profile > Rate tab (Click to enlarge): 





  2. Add a new rate by clicking on “+ New Rate” icon. Use the first Sunday (period begin date) after 1/1/13 as the new cost rate’s begin date as shown below.
  3. Click “+Cost Rate” one more time to add the special time period when 2 cost rates ($10 and $15) are used. In our example, it is the week of 12/29/2012 to 1/5/2013
  4. Calculate the effective cost rate for this time period. In our example, Jack is paid 1 day at $10 rate and 4 days at $15 rate, his effective rate for this week is (1*$10+4*$15)/5 = $14 or to think of it in a different way: 20% of the time period he is paid at the rate of 10, 80% of that time period, he is paid at the rate of 15, thus the effective rate is 20%*$10+80%*15 = $14. 

    (Click to enlarge)


In similar fashion, one can calculate the effective cost rate if the company uses bi-weekly, semi-monthly or monthly time period.


Additional Information

Help Docs - Manage People Profile

Help Docs - Dilution