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Payroll Calculations

Calculation Methods

Salary‑based (full‑time)

  • An hourly rate is derived: salary ÷ base hours (or from custom/fixed overrides).
  • Cost = hours worked × that rate.
  • Overtime hours are identified separately (see Overtime Calculations); the app may use the same rate for all hours in the cost total, or your organization may apply different rules externally.

Hourly rate

  • Cost = hours worked × hourly wage. No base hours or overtime logic.

Daily rate

  • Cost = days with shifts × daily wage. No hourly rate.

Understanding calculation modes

  • Full‑time: Base hours come from the employment type (fixed or frequency‑based), or from employee‑level overrides (custom base hours or fixed hourly rate).
  • Hourly / Daily: Only the configured wage and worked hours/days matter.

Base Hours & Norms

What are base hours?

  • Base hours = the monthly norm (expected hours) for a full‑time employee. Used to:
    1. Compute hourly rate = salary ÷ base hours (when using the employment type norm).
    2. Decide overtime: hours worked beyond base hours (plus any shifts explicitly marked overtime) count as overtime.

Employment type norms

  • Fixed: You set monthly norm (hours) on the type (e.g. 164).
  • Frequency: You set hours per day and work cycle or weekdays. The app computes base hours per month from the calendar.

Custom base hour division

  • For a full‑time employee, you can choose "Divide by custom norm" and enter custom base hours per month. The hourly rate is then salary ÷ custom base hours, and overtime uses this same custom norm.

Fixed hourly rate override

  • For a full‑time employee, you can choose "Fixed hourly rate" and enter a rate directly. Cost = hours worked × that rate. The salary is still stored but not used for cost; base hours are not used for rate derivation. Overtime hours are still calculated using the employment type or custom base hours norm.

Overtime Calculations

How overtime is calculated

  • Overtime applies only to full‑time employees.
  • Base hours (from type or custom norm) define the "regular" workload.
  • Overtime = (1) hours from shifts explicitly marked as overtime, plus (2) regular (non‑marked) worked hours that exceed base hours.

Overtime rates

  • The app tracks overtime hours and shows them in monthly statistics (e.g. on the shift calendar). Cost is typically computed using the same hourly rate for all hours unless you handle overtime pay differently outside the app (e.g. in payroll).

Full‑time only overtime

  • Hourly and daily employees do not have overtime logic. All their worked hours or days are treated alike for cost and stats.

Viewing overtime costs

  • The shift calendar shows overtime hours (e.g. in a summary or stats section). Total cost usually includes both regular and overtime hours at the same rate. Use overtime hours for your own payroll rules (e.g. extra pay) if applicable.

Next: Monthly Payroll Summaries