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Calculating & Reporting Salaried Staff Costs

Sophie Rattray avatar
Written by Sophie Rattray
Updated this week

🆕 What’s changed?


We’ve introduced a smarter, more consistent way to calculate the cost and hours worked of salaried team members in Loaded. No matter how you track hours, whether it’s timeclocks, rosters, or the regular working hours a salaried staff member works, we’ll now allocate salary costs using a consistent, clear hierarchy:

  1. 🕓 Timeclock method: if the staff member clocks in, we use those actual hours to calculate the hourly rate and total pay.

  2. 🗓️ Roster method: if the staff member doesn’t clock in but is on the roster, we use their rostered shifts to calculate the hourly rate and total pay.

  3. ⌛ Regular Working Hours (RWH) method: if there’s no clock ins or rostered shifts, we use your company’s regular working hours to calculate the hourly rate and total pay.

This new approach ensures your roster, timesheets and reports reflect your true labour cost for past, current and future reporting periods.

Including Leave in Salaried Staff cost: You can reduce a salaried staff member’s RWH by the amount of leave they take to ensure you’ve got accurate Labour costs and reports.

🧠 How does it work? Calculating Hourly Rates and Hours Worked for Salaried Staff


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1. Timeclock method

  • Used when: The salary team member has clock-ins for the report period you are viewing.

  • Loaded uses the clock-ins to calculate the number of hours worked and the hourly rate.

    • If there are rostered shifts and clock ins for the reporting period, Loaded will only use the clock-ins.

2. Roster method

  • Used when: There are no clock-ins for the salary team member, but there are rostered shifts for the report period.

  • Loaded uses the rostered shifts to calculate the number of hours worked and the hourly rate.

3. Regular Working Hours (’RWH’) method

  • Used when: There are no clock-ins or rostered shifts for the salary team member.

  • Loaded uses the RWH set for your company* to calculate the number of hours worked and hourly rate.

    *Go to your Company Settings > Time & Attendance > Default Regular Working Hours to update your company’s RWH

✅ What do I need to do?


  • If you don’t have any staff members on a salary in Loaded, you don’t need to do anything.
    ​

  • If you want to change a staff member from an hourly rate to a salary, we recommend making this change to be effective at the start of a pay period to ensure consistency in reports.
    ​

  • If you have salaried staff members who don’t get rostered or don’t clock in then those staff members will be included on the Punches by Staff page, payroll export and Labour reports based on Regular Working Hours. If you don’t want these staff members included here, we recommend:

    • Setting their salary to $0.00; or

    • Changing the RWH so everyday is marked as a “day off”
      ​

  • If you have salaried staff members who get rostered on, and occasionally clock in, and you don’t want Loaded to use the clock ins to calculate their hours and cost, then:

    • They need to stop clocking in if you want to use the Rosters method

    • They need to always clock in for their shifts if you want to use the Timeclocks method.

📉 How does this work for different report periods?


The method Loaded uses to calculate a salaried staff member’s cost and hours will depend on the period the report is run for. Here’s a summary of how it works:

Viewing a Past report

Example - Reviewing all of last week’s labour reports on a Monday morning.

  • Loaded uses the Timeclocks > Roster > RWH hierarchy above

  • If there are clock ins, hours worked and hourly rates will be calculated using those clock ins

  • If there are no clock ins but rostered shifts, hours worked and hourly rates will be calculated using the rostered shifts

  • If there are no clock ins or rostered shifts, hours worked and hourly rates will be calculated using the RWH

Viewing a Current Report

Example - Halfway through a current week you are looking at the punches by staff report

  • For the period of the report that is in the past, Loaded uses the Timeclocks > Roster > RWH hierarchy above

  • For the period of the report that is in the future, Loaded will use rostered shifts if there are any, or RWH if there are no rostered shifts

Viewing a Future Report

Example - Comparing your Rostered Labour and Budget for a coming week with the actual Labour cost and Sales for the same period last year.

  • If there are rostered shifts, hours worked and hourly rates will be calculated using the rostered shifts

  • If there are no rostered shifts, hours worked and hourly rates will be calculated using the RWH

What will your labour reports show?

Staff Member has

Viewing a past report Loaded will show

Viewing a current report Loaded will show. ie This week

Viewing future report Loaded will show

Clock ins + Rostered Shifts

Clock ins only

Clock ins + Rostered shifts for future part of report period

Rostered Shifts only

Clock ins with no Rostered Shifts

Clock ins only

Clock ins + RWH for future part of report period

RWH only

Rostered Shifts with no Clock ins

Rostered shifts only

Rostered shifts only

Rostered shifts only

No Rostered Shifts or Clock ins

RWH only

RWH only

RWH only

📆 How is a salaried staff member’s cost calculated on the Roster?


Loaded calculates the cost of salaried staff member on the roster as:

  • Annual Salary / 52 = weekly cost

  • Hourly rate = weekly cost / number of hours rostered (or regular working hours)

When you open the roster editor, salaried staff members hours and cost on the roster will be based on the company’s regular working hours* by default:

image (61).png
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*Go to Settings > Time & Attendance > Default Regular Working Hours to update these hours.

You can override the regular working hours by adding a shift for the salaried staff member. The hours and cost for the salaried staff member will then be based on the actual shifts added for the week.

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💱 What happens when I change a staff member’s salary or hourly rate ?


What happens if I change the salary or hourly pay rate of a staff member for a future date?

Then Loaded will calculate the hourly rate and total pay for the staff member using the new pay rate, so long as the roster or report period is after the new salary or hourly rate is effective.

What happens if I change the salary or hourly pay rate of a staff member for a past date?

If a staff member’s pay is updated to be effective from a date in the past, and the staff member already has rostered shifts or clock ins that occur after the date of the pay change, then this is how Loaded will calculate the staff member’s pay in those areas:

Hourly Rate

Salary

Unlocked Rostered Shifts

New pay rate

New salary

Locked Rostered Shifts

Old pay rate

Old salary

Regular working hours on an unlocked roster

NA

New salary

Regular working hours on a locked roster

NA

New salary

Clock ins (approved & unapproved)

Old pay rate

New salary

What happens if I change a salaried staff member’s salary part way through the week?

If a staff member’s salary changes part way through the week, then Loaded prorates the historical salary and the new salary to calculate the staff member’s salary for that week.

An example of a salary change part way through the week

Original salary: $52,000/year

  • Applies for 3 days (Mon 28 Apr – Wed 30 Apr)

  • Daily rate = $52,000 á 365* = $142.47

  • Cost for 3 days = $142.47 × 3 = $427.41

New salary: $75,000/year

  • Applies for 4 days (Thu 1 May – Sun 4 May)

  • Daily rate = $75,000 á 365* = $205.48

  • Cost for 4 days = $205.48 × 4 = $821.92

Total for the week:

  • $427.41 + $821.92 = $1,249.33

Pro-rated daily and annual rates:

  • Weekly avg = $1,249.33 á 7 = $178.48/day

  • Annualized = $178.48 × 365* = $65,145.20

Punches by Staff: The pay rate for each day will show the calculated prorated hourly rate, rather than the hourly rate based on the salary that was effective on that date.

*Note that if it is a leap year, the above calculations need to use 366 for the number of days in the year, instead of 365.

Salary scenarios you’ll encounter and how we cover these


Overview

If

Then

Salary change - Future Roster

A salaried staff member has their future salary changed and are rostered in a roster later than this date

Then the rostered cost of the salaried staff member is calculated using the salary that will be effective during the roster dates

Salary change - Roster Template

A roster is created from a template that was created prior to a staff member's salary change

Then Loaded updates the hourly rate and total pay to be calculated using the salary effective on the roster date

Salary change - Copy Roster

A roster is copied from a previous roster that was created prior to a staff member's salary change

Then Loaded updates the hourly rate and total pay to be calculated using the salary effective on the roster date

RWH Change

The company regular working hours (RWH) are updated mid week

Then Loaded always uses the latest RWH and doesn't take into account any historical RWH

Remuneration Type Change

A salaried staff member's remuneration type changes from salary to hourly (or hourly to salary) mid-week

Then Loaded calculates the salary for the for period that the employee was on salary using a part week salary and the hours for that period. Then any hourly rates are treated as normal.

RWH - Day off

A salaried staff member is rostered or clocks in on a day that is a ‘Day Off’ in the RWH

Then Loaded calculates the hourly rate and total pay based on the clock in, or rostered shifts, depending on when the report is run.

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