Title: What does the property "Use Business Week Hours for Dilution" do?
This entry describes how the business week hours for dilution property works (unatime.dilution_hours_from_business_week).
What’s covered in this document:
The property is location in Admin > Properties > Time > General. By clicking on the property, you will expand the description of the property.
The Important Warning indicates that this property is typically used with weekly or biweekly type time periods.
Rarely would it be used with semimonthly or monthly time periods. The language in the warning statues that it "should probably not be used" if you use semi-monthly or monthly time periods. If you pay your salaried employees the same salary every semimonthly period, then you would not want to turn this property on (if you pay them the same in a short month like February as a long month like March).
Rarely, companies follow a policy to pay their salaried employees variable amounts (for example paying them slightly less in a short month like February and more in a long month like March). In these rare situations, a client using semimonthly or monthly time periods would in fact have this property turned on.p
Weekly or Biweekly periods
You may set this property to true if you have salaried employees who work a shorter week. For example, if you have some salaried employees who work 32 hours per week and get paid the same every weekly or biweekly period. In this case, dilution would use that 32-hour person's business week hours (32 for weekly or 64 for biweekly) for the dilution hours instead of the time period hours (40 for weekly or 80 weekly). And for full time 40-hour week employees, it would still use the 40 hours from those peoples 40 hour business week.
Semi-monthly or Monthly periods
As mentioned above, this property would typically be set to false for systems with semimonthly or monthly time periods. You would only turn this property on if you pay salaried employees less for short months than for longer months.
When the property is set to true in a system with semi-monthly periods, the property results in the business hours per period (80, 88, 96, 104, etc.) being the basis for Hours in Period (instead of 86.667). As a result, each period will have a different pay amount.
See the example below where dilution has been calculated in a system with the property set to true, resulting in differing pay amounts for salaried employees per period. (Again, if you actually pay salaried people the same every pay period, you would instead leave this property set to false.)
Note how the second half of June is the same as the first half of July since those periods have the same business hours, but the total June amount differs from the total July amount since each month's total business hours differ.
Person Dilution screen reflecting that the Hours in Period value is the business week hours in the period (and not the standard 86.667)
Unanet Time Details report showing cost/pay information for semi-monthly