Editing employee rates

 

This topic describes what happens to cost calculations when you edit an employee hourly pay rate or hourly billing rate. Specifically, this topic details how a rate change is applied to future time entries and how you can control if a rate change is applied to past time entries (backdating the change).

 

If you are entering an hourly rate for a new employee who has no time entries, then these details can be ignored. Simply enter the new rate and Apply (see Employee Rates).

 

As described above, the following details are written for those situations where:

(1) you are changing an employee's rate value from one value to another, or from no rate to a rate for the first time.

or

(2) when adding, for the first time, a rate for an employee who already has time entered.

 

Note: Although not detailed separately, the same information and rules detailed below apply when changing a rate's Currency selection (If Currencies are enabled).  

 

Warning: The functions described below are only valid when modifying employee rates using the Employee form. Editing employee rates from other views (Project Creation, Actual Time & Costs) has different affects and are detailed in their respective help topics. Editing other types of rates (task rate, project rate, expense category rate, etc..) are detailed in other topics.

 

This topic is divided into 2 sections:

  • Editing an employee's Hourly Pay Rate

  • Editing an employee's Hourly Billing Rate

 

EMPLOYEES

 

Basics

How to add an employee

Change password?

Adding hourly rates for a new employee

Login access

Complete Employee Properties

Employee FAQs

Operational Questions

Free up a license

Copy an employee's assignments

Deactivate an employee

What is Limited Access?

Approval workflow

 

Editing an Hourly Pay Rate


ClosedBackground Information

 

The Employee Hourly Pay Rate is used to calculate how much an employee's time will cost your company. This is the Actual Company Costs. This same value is also used to calculate how much this employee's time is budgeted to cost your company (Budgeted Company Costs).


Actual Company Costs = Employee Hourly Pay Rate x Approved Hours x Pay Overtime prorating
Budgeted Company Costs = Employee Hourly Pay Rate x Budgeted Hours

 

How changing an employee pay rate affects Actual Company Cost calculations.

 

As a general rule, if you simply change the employee's pay rate value and click Apply (ignoring the Backdate button), the new rate value is only used to calculate Actual Company Cost for future time entries - for all projects. This is automatically done since an employee is normally paid the same rate regardless on which project he or she works. The Backdate button is made available if there is a need to update Actual Company costs for past time entries (that is, time already submitted and approved).

 

When a hourly pay rate is edited:

  • Future Time Entries - For this employee, all future time entries submitted, across all existing and new projects, will use this new hourly value to calculate Actual Company Costs. This is done automatically. Time entries that have already been submitted, but not yet approved, are also automatically updated with the new hourly rate.

  • Past Time Entries - Applying this rate change to time entries previously approved can be done using the Backdate button. Using the Backdate function will update rates across all projects (including projects which are marked as Completed). If you only want to update hourly pay rates on specific projects, do not use the Backdate function. Instead, use the Actual Time & Costs view to backdate a Pay Rate change for one or more specific projects.

 

 

Warnings: The Backdate button described below is used in many areas of the software. Although it visually appears the same, the ramifications of using it vary depending on where it is used. Please read the help file for the specific view for detailed instructions on using the Backdate button.

 

ClosedI want to update an employee's hourly pay rate and apply it to all projects going forward, while not affecting previous time.

 

From the Employee's form

  1. Update the Hourly Pay Rate field (ignore the Backdate button).

  2. Click the Apply button on the form.

 

By default, the new pay rate is automatically used on all this employee's future time entries, across all active projects and any new projects created in the future. Time entries that have already submitted, but not yet approved, are also automatically updated with the new hourly rate.

 

ClosedI want to update the employee's hourly pay rate and apply it to all projects going forward and apply it to time entries already approved (backdate).

 

Warning: This function changes the cost calculations for ALL projects. To apply this change to only one or more specific projects, use the Actual Time & Costs view.

 

From the Employee's form

  1. Update the hourly pay rate field.

  2. Click the Backdate button.

  3. Pick a date to set how far back in time to apply this new rate. If you are unsure, cancel out of the rate change by clicking Cancel on the Backdate pop-up and clicking Cancel on the Employee form. You can use the Actual Time & Costs view to see what hourly rate have been used for any project.

  4. Click Apply on the Backdate pop-up.

  5. Click Apply on the employee form.

 

For companies using Time Lockout:

When Time Lockout is enabled, attempts to edit rates using the Backdate option may be denied if any time entries associated with a locked out date range will be affected by editing the rate. If the user has the appropriate Security option enabled (Time Lockout – Bulk Edit Override), then the option to override the time lockout is made available (Override time in locked down period). When this override option is used, all edits are recorded in the Audit trail - if the Audit Trail is enabled.

 

ClosedI want to update the pay rate and apply it to only new (future) projects.

 

This is not possible. As an employee is normally paid the same rate, regardless on which project he or she works, the ability to apply different pay rates per project is not available.

 

 

 

 

 

 

 

Editing an Hourly Billing Rate

 

ClosedBackground Information

 

The Employee Hourly Billing Rate is used to calculate how much you can bill a client for his or her time (Actual Client Costs). However, this only applies to those projects which are set to 'Bill by Employee Hourly'. This same value can also be used to calculate how much this employee's time is budgeted to cost a client (Budgeted Client Costs)

 

Actual Client Costs (for project's set to Billable by Employee Hourly) = Employee Hourly Billing rate x Approved Hours (flagged as billable) x Billing Overtime prorating

Budgeted Client Costs (for project's set to Billable by Employee Hourly) = Employee Hourly Billing rate x Budgeted Hours

 

How changing an employee billing rate affects Actual Client Cost calculations

 

As a general rule, if you simply change the employee's hourly billing rate value and click Apply, the new rate value is automatically used to calculate future Actual Client Costs for all projects that are set to Billable by Employee Hourly. There is no Backdate button available when modifying an employee's Billing Rate.

 

When a hourly billing rate is edited:

 

  • Future Time Entries - All projects that are 'Billable by Employee Hourly' will use this new billing rate value - with the following exceptions:

  • Past Time Entries - Applying this rate change to time entries already approved can be accomplished using the project's Team section.

 

 

 

Typical Scenarios

ClosedI want the updated employee billing rate to apply going forward for all projects that are set to 'billing by employee hourly' (active and future projects).

 

  1. Update the Hourly Billing Rate field.

  2. Click the Apply button.

 

The new billing rate is automatically applied to project's that are set to Billable by Employee Hourly. There are 2 exceptions:

  • The employee's hourly billing rate was manually edited in the Project Creation view's Team section.

  • The project's 'Lock employee billing rates' option is checked - in Advanced Settings.

 

 

 

ClosedI want this updated rate to apply going forward for all projects and apply the new rate to time entries already approved.

 

The first part is easy. The second part (time already approved) is more time consuming.

 

First Part

  1. Update the Hourly Billing Rate field.

  2. Click the Apply button.

 

The new billing rate is automatically applied to project's that are set to Billable by Employee Hourly. There are 2 exceptions:

  • The employee's hourly billing rate was manually edited in the Project Creation view's Team section.

  • The project's 'Lock employee billing rates' option is checked - in Advanced Properties.

 

 

Second Part

  1. Create a list of projects where the employee is assigned and the project is billable by Employee Billing Rate.

  2. Go to the Project view (Projects > Projects).

  3. Open (edit) the first applicable project.

  4. In the Team section - you will notice that the employee's new billing rate is already updated. However, the new rate will only be applied to future time entries on this project. This is where you will backdate the value for this project.

Note: If you don't see the updated rate, this means that someone manually edited it previously. In this case, manually edit the rate to the new value and go to step 6 (Backdate).

  1. Click on the employee's Billing rate.

  2. Click the Backdate button

  3. Pick a date to set how far back in time to apply this new rate.

  4. Click Apply.

  5. Click Save for the Project - This last part is important.

  6. Open the next applicable project and repeat steps 4 to 9.

 

 

For companies using Time Lockout:

When Time Lockout is enabled, attempts to edit rates using the Backdate option may be denied if any time entries associated with a locked out date range will be affected by editing the rate. If the user has the appropriate Security option enabled (Time Lockout – Bulk Edit Override), then the option to override the time lockout is made available (Override time in locked down period). When this override option is used, all edits are recorded in the Audit trail - if the Audit Trail is enabled.

 

 

ClosedI want this updated rate to apply only to specific projects (not all projects).

 

Before editing the employee billing rate:

  1. Go to the Projects view (Projects & Employees > Projects).

  2. Determine which projects to exclude from this change.

  3. Open one of these projects to exclude from the change.

  4. Click Project Settings > AdvancedSettings.

  5. Check the 'Lock Billable employee rates' box.

  6. Click Apply.

  7. Click Save on the project form.

  8. Repeat steps 3 through 7 for each project to exclude from this change.


Edit employee billing rate

  1. Go to the People > Employees.

  2. Open the employee's properties.

  3. Edit the hourly billing rate.

  4. Click Apply.