Rates
In the Rates overview, you can effortlessly see how much each team member's work costs you and how much you're billing the client for their efforts.
You'll also find a dedicated column for overhead costs allocated to individual team members.
When using a monthly rate on a project, cost rates are automatically calculated at the end of the month.
The hourly rate for people paid by the hour corresponds to the hourly rate you enter in the person detail under Salary.
How to Calculate Hourly Rates for Salaried Employees
In our case, we observe the hourly rates for team members as set in the section Adding Colleagues to Your Account. For employees paid a monthly salary, the rate is initially calculated as:
If we have the cost calculation set to Monthly Rate (which is the default setting), after the month ends, the rates for salaried employees are recalculated using the following formula:
This recalculation ensures that the entire salary of these team members is accurately distributed across your projects.
The hourly rate when calculating the costs The monthly rate is also affected by the coefficient that we choose in the Cost Allocations.
That is e.g. if a person with a monthly salary of $ 2,000 and a working hours of 160 hours only works 20 hours. The hourly rate should correspond to USD 100. However, by choosing, for example, a coefficient of 2. The hourly rate will only be able to increase by 1, which is 2,000 / 160 hours => 12.5 x 2 (coefficient) => Hourly rate 25 .
The calendar icon next to each person in the Project Rates overview displays the precise cost rates for each month in which the person tracked time.
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