Minimum wage adjustments (MWA's)

Minimum Wage Adjustments (MWAs) are applied optionally when piecework (or hourly + piecework) jobs are finalized as specified within the configuration of your payroll entity (which will be applied either through assignment to the ranch that the job takes place at, or an employee being specifically set to be paid by the relevant entity).


MWA's are an hourly wage with a quantity of hours equal to the employee's total hours worked at a job. The hourly rate will be equivalent to the difference between the employee's effective hourly rate and the minimum hourly rate determined by an employee's minimum wage.


So, for example, if an employee's effective hourly rate at a job is $11.00/hr, but their minimum wage is $13.00/hr (and MWA is enabled), a Minimum Wage Adjustment will be automatically added upon the job being finalized. The sum of the MWA will then be arrived at using the following logic:

(Employee worked 5hrs in given example)

$11.00/hr for 5hrs = $55.00. Minimum wage of $13.00 * 5/hrs = $65.00 (this is the desired total). $65.00 - $55.00 = $10.00 (the sum to compensate), and $10.00 / 5hrs = $2.00/hr (lump sum adjusted to an hourly rate).




Determining Effective Hourly Rate

Minimum Wage Adjustments at piecework jobs are calculated by determining an employee's total earnings for a piecework job divided by the total hours worked for the job, which gives us their effective hourly rate for the job (essentially an averaged pay). If the effective hourly rate is below the effective minimum hourly rate, a minimum wage adjustment will be added.


To see directly how to configure automatic MWA's in a payroll entity, consult this article. MWAs can also be manually added during job finalization. Furthermore, automatically added MWAs will be visible on the Job Finalization screen and thus can also be removed during finalization if not desired.


Note: Famous will automatically recalculate MWAs after importing, which may result in differing totals. In this case, Famous would have the correct MWA, and FieldClock's can be disregarded.


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