People

Bonuses

Ideal for recording bonuses and rewards for individual employees. Bonuses document one-time expenses that we allocate to a specific person as a cost for a given month.

Bonuses can include one-time rewards and, for example, costs for specific equipment or services related to a particular person.It is important to keep in mind what we include in bonuses when subsequently evaluating reports and the profitability of your team members.

How Are Bonuses Allocated to a Person's Hourly Rate in Projects?

Employees with a Monthly Salary

Calculation with Monthly Rate

For employees with a monthly salary, all bonuses for the given month are added to the monthly salary. This is considered the monthly cost for the person, from which the hourly cost is calculated - see Calculating a Person's Hourly Rate.

Calculation with Fixed Rate

Bonuses are not allocated for employees paid by the hour. They remain as costs outside of project allocation.

Employees Paid by the Hour

Calculation with Monthly Rate

Costlocker performs a similar calculation as for employees with a monthly salary. We sum all bonuses for the given month, divide them by the total number of tracked hours in that month. This calculates the "hourly cost for bonuses." This is then added to the hourly rate. This way, we calculate the total cost per hour of work for the person.

Calculation with Fixed Rate

Bonuses are not allocated for employees paid by the hour. They remain as costs outside of project allocation.

Salary

Calculating an Employee's Hourly Rate

In Costlocker, we have two ways of calculating project costs based on hours worked => fixed rate => monthly rate Each has its own specifics, advantages, and disadvantages. We'll read about the differences below.