Calculating Hourly Rate for a Salaried Employee

The Benefits Administration application calculates an employee's hourly rate to determine the value of each vacation hour for flex vacation plans in which an employee can buy or sell vacation hours.

The Benefits Administration application calculates the employee's hourly rate as follows:

  1. If the flex vacation plan is based on a salary other than the employee's flex salary, the Benefits Administration application annualizes the employee's pay rate. Calculating annual salary for an hourly employee

    If the flex vacation plan uses the employee's salary used for flex calculations in Employee Flex Credits (BN45.1), the application determines which salary is used based on the parameters defined for the flex vacation plan in the Flex Salary Parameters subform on Flex Credits (BN08.1).

  2. The Benefits Administration application calculates the cost of a vacation hour using the following equation:

    [Annual Salary / (Job code FTE * Annual hours)] * Cost = Cost of one vacation hour

The Cost figure is from the Misc. tab on Benefit Plan (BN15.1).