When it comes to allocating salaries you have two options: splitting costs evenly by rostered days, or spreading costs using an hourly rate.
Split salaries evenly by rostered days
If you want your salaried staff to be costed at the same amount each shift, no matter how many hours they work, the ‘Rostered Days’ method is for you. This method ensures accurate and consistent wage costs for salaried staff between pay periods.
With Rostered Days enabled wage cost variances in timesheets will be hidden, but you’ll still be able to see the variances for rostered and actual hours worked.
If Alex's weekly salary is $1000 and works 5 shifts, each shift will be costed evenly at $200. If Alex works an additional shift he wasn't rostered for it will be costed at $0.
Timesheet with 'Rostered Days' Salary Allocation
Spreading salaries using an hourly rate
The ‘hourly rate’ method is for those who want their salaried staff to be costed on an hourly basis to get a representation of cost distribution throughout the day. This method works best for managers who monitor their Live Wage Tracker or Live Insights throughout the day.
The hourly rate is calculated by dividing the salary by the the rostered or expected hours, depending on which is larger. If Alex is rostered for 37 hours, but his expected hours is 38, we will use the expected hours to calculate Alex's hourly rate:
Calculating the cost of a shift:
($1153.85 weekly salary / 38 expected hours) x 9.5 worked hrs = $288.46
Timesheet with 'Hourly Rate' Salary Allocation