FAQ: How are wages and compensation calculated for Filled Positions?

Once you’ve uploaded or added a new position, you’ll see all successfully created employees in the Employee Manager Table. The application calculates their budgeted wages automatically.  The system performs this calculation in various ways depending on the progression type (merit vs. tenure) and the compensation type (hourly vs. salary).  It also considers FTE, initial step date, and start date in its calculations.  

• For hourly, tenure-based employees that will not change steps through tenure progress and did not start in the current FY, the calculation is: 
  (standard hours * FTE) * Rate = Total wages
• For an hourly, tenure-based employee that progresses through steps in the budget year based on the progression and last step date, we use a different calculation to get a blended rate: 
  ((standard hours * FTE) * Rate ) * percentage of time in step = {hourly wages in particular step}
  • If an employee spends 25% of the year in step 1 and 75% in step 2 based on tenure,  the system calculates the salary for the time spent at each step and adds them to calculate blended wages for the budgeted year.
• For a salaried, tenure-base employee, we use the same calculations as above for hourly tenure except we do not look at standard hours, and the step value would be the salary value:
  • (step value * FTE) = Total salary
  • ((step value * FTE) * percentage of time in step = {salary for the time in that step}
• Merit-based employees will NOT have a blended rate.  The calculation will use their current step for the budget year:
  • Hourly: ((standard hours * FTE) * Rate {from step})
  • Salaried: (FTE * salary amount {from step})
• For both merit- and tenure-based jobs, if the employee start date is within the budget year, the system will calculate the time remaining in the year for their wages:
  • Hourly: ((standard hours * FTE) * Rate {from step}) * percentage of time left in FY = Total
  • Salaried: (FTE * salary amount {from step})  * percentage of time left in FY = Total

Note: For tenure-based roles, the start date and progression period are used to calculate the prorated wages and any blending of rates across steps.