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Last Updated: 2026-04-03
Example: Create Pay Rate Based Formulas

Example: Create Pay Rate Based Formulas

This example illustrates how to create a pay rate based formula.
You're operating a pay rate based program model and want to save time and manual effort. We'll build pay rate formulas to source the pay rate and markup values to calculate the bill rate and use criteria to determine when these formulas should be applied.
You must have at least one pay rate-based rate card.
  1. From the header, select
    More
    Company Settings
    .
  2. Under
    Accounting
    , select
    Calculation Engine
    .
  3. Select the
    Formulas
     tab, and locate the system formula for
    Final Bill Rate (Hourly Pay)
    .
  4. Click
    Actions
     and select
    Duplicate
     from the drop-down menu.
  5. Enter a
    Formula Name
     of
    Pay Rate Calculation
    .
  6. Under
    Formula Builder
    , locate the
    Define a New Equation for this Condition
     field for
    Condition Group 3
    .
    The equation should display as:
    ([Bill Rate] [Work Order Premium Rate Operator][Work Order Premium Rate Modifier]) * [Work Type Rate Modifier]
  7. Replace
    Bill Rate
     with
    Pay Rate
     using
    Add Formula Component
    .
  8. Enter
    1 + [Markup]
    .
    The equation should now display as:
    (([Pay Rate]*(1+ [Markup])) [Work Order Premium Rate Operator] [Work Order Premium Rate Modifier]) * [Work Type Rate Modifier]
  9. Under
    Condition Group 5
    , locate the
    Define a New Equation for this Condition
     field.
    The equation should display as:
    (((([Bill Rate] [Work Order Premium Rate Operator] [Work Order Premium Rate Modifier]) [Shift Differential Operator] [Shift Differential]) [Timesheet Premium Rate Operator] [Timesheet Premium Rate Modifier]) * [Work Type Rate Modifier]) [Calendar Pay Rate Operator] [Calendar Pay Rate Modifier]
  10. Replace
    Bill Rate
     with
    Pay Rate
     using
    Add Formula Component
    .
  11. Enter
    1 + [Markup]
    .
    The equation should now display as
    (((([Pay Rate] * (1+ [Markup])[Work Order Premium Rate Operator] [Work Order Premium Rate Modifier]) [Shift Differential Operator] [Shift Differential]) [Timesheet Premium Rate Operator] [Timesheet Premium Rate Modifier]) * [Work Type Rate Modifier]) [Calendar Pay Rate Operator] [Calendar Pay Rate Modifier]
  12. Click
    Save
    .
  13. Select the
    Formula Groups
     tab and click
    Create New
    .
  14. Enter the following information:
    Option Description
    Formula Group Name
    Pay Rate Worker
    Pay Type
    Hourly
    Program Rate Type
    Pay Rate Based
    Default Formula
    Pay Rate Calculation
  15. Click
    Save
    .
  16. Select the
    Rules
     tab and click
    Create
    .
  17. Enter the following information:
    Option Description
    Rule Name
    Pay Rate Rule
    Pay Type
    Hourly
    Program Rate Type
    Pay Rate Based
    Formula Group
    Pay Rate Worker
  18. Click
    Save
    .
As you open new jobs, the new formula group is reflected in the
Formula Groups
 field for jobs that meet your criteria that align with the rate card and settings configured above.
When sourcing a pay rate, the system uses the updated formula to calculate the bill rate by pulling the pay rate and markup values.