Learn how to apply blended rates to regular, overtime, and holiday pay rates. Choose how the premium matrix is added to the blended rate.
Overview
A blended pay rate, also known as a weighted average pay rate, calculates the average hourly rate for an employee who works at different pay rates during a single pay period. This method ensures fair compensation when an employee performs multiple tasks or roles with different pay rates.
Before you start
Here are some things you must do before you start:
- You will need to be using TrackTik’s Payroll feature.
- Contact us to confirm you are using V2 of our Payroll Engine.
Choose Blended Rates in Back Office Defaults
To set and define Blended Rate defaults:
- Go to Settings
- Click BackOffice Default
- Scroll to Payroll Overtime and Blended Rate Settings
- Choose and check the boxes next to:
- Use Blended Rate for Regular hours
- Use Blended Rate for Holiday
- Use Blended Rate for Overtime hours ( Weighted Overtime )
- Scroll to Payroll Blended Rate Definition
- Choose and check the boxes next to:
- Include Matrix Premiums in Blended Rate Calculation
- Include Holiday Premiums in Blended Rate Calculation
- Include PTO in Blended Rate Calculation
Choose Blended Rates in the Payroll Schedule
You can also define Blended Rates for an individual Payroll Schedule. This will overwrite your Back Office Defaults.
To define Blended Rates in a Payroll Schedule:
- Go to Settings
- Click Payroll Schedules
- Choose or create a Payroll Schedule
- Click Edit
- For Use Blended Rate for Regular hours, Use Blended Rate for Holiday, and Use Blended Rate for Overtime hours ( Weighted Overtime ), choose from the three options in the drop-down menus:
- Use Region Backoffice Settings – this will apply the setting you chose in Back Office Defaults
- No – this will remove the blended rate from the payroll hours (overwriting the Back Office Default).
- Yes – this will apply the blended rate to the payroll hours (overwriting the Back Office Default.
- Click Save to apply your changes.