Create a rate entry in the Person Profile that represents the blended rate. See example below.
User01 A user has a cost rate of $10.00/hour and his company uses a Weekly time period set up, beginning on Sunday, 07/01/2018, The user is paid $10/hour. The calendar date user receives a pay increase on 07/03/2018 which is a Tuesday, not equal to the time period begin date.
As the administrator:
- Open the Person Profileand for the user and select the Rates tab.
- Add a new rate by clicking the +New link. Use the first Sunday (period begin date) after 07/08101/2018 as the begin date, which will be 07/08/2018 as shown below.
- Click the +Rate link one more time to add the special time period when two cost rates ($10 and $15) are used. In our example, it is the week of 1207/2901/2012 2018 to 107/507/20132018.
- Calculate the effective cost rate for this time period. In our example, the User01 user is paid 1 day at the $10 rate and 4 days at the $15 rate. The 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.
In similar fashion, one can calculate the effective cost rate if the company uses bi-weekly, semi-monthly or monthly time period.