How to calculate vacation and sick pay using non-traditional calculation methods
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Cause
Resolution

To convert to non-traditional rate in Sage BusinessWorks you will need these figures/variables:

  • Rate=The rate to be earned
  • Hours worked=Amount of hours to be worked to earn the rate
  • Regular full time hours in a year=(Hours in a work week located in PR, Utilities, Maintain Payroll Parameters) x (Number of weeks in a year i.e. 40 hours x 52 weeks = 2080)

The Formulas are:

  • (Rate) / (Hours worked) = hourly rate
  • (Hourly rate) x (Regular full time hours in a year) = Rate employee earns per year

Examples: In this example the number of hours in a work week (found in Payroll Parameters) is 40, therefore Regular full time hours in a year is 2080 (40 hours x 52 weeks).

Example 1: Employee will earn 1 hour (vacation or sick) for every 30 hours worked

  • Rate = 1 hour
  • Hours worked = 30
  • Hourly rate - 1/30=.033333
  • Rate employee earns per year - .03333 x 2080 = 69.333
  • Enter Rate of 69.333 in PR, Employees, Maintain Employees, Vacation...

Example 2: Employee will earn 8 hours (vacation or sick) for every 160 hours worked

  • Rate = 8 hours
  • Hours worked = 160
  • Hourly rate - 8/160=.05
  • Rate employee earns per year - .05 x 2080 = 104
  • Enter Rate of 104 in PR, Employees, Maintain Employees, Vacation…
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