Rederive Average Payout Wage at Year End {optional}#
This component derives the average wage rate for year-end purposes only.
Is rate averaging to be used?
Yes: Choose the rule to be used
No: Go to A950
| Rule | Description | Logic | Assoc. | Go to |
|---|---|---|---|---|
| 01* | Amount Carry Over/Time Carry Over | To derive the amount carry over, calculates current owing amount (A730) less the excess amount over the cap. The excess amount is the Time over cap (A910) x wage rate (A010). Divides the result by the Time carried over (A900). | A010 A730 A900 A910 | A940 |
This component is used if the policy uses rate averaging to determine payout wage (refer to the rule defined in A710). In this case, the calculation of the excess amount over cap may cause the wage rate for the payout /lost time to be different than the wage rate currently held on the accrual record.
Example:
Prior Year Remaining: 60 hours @ $10 $ 600.00
Current Year Earned: 120 hours @ $10.50 1260.00
Taken: 5 hours @ $10.50 52.50
Current Owing: 175 hours $1797.50
Year End Cap: 100 hours @ $10.50 1050.00
Note that the payout/lost amount does not equal 75 hours x 10.50 (787.50). It may be required to derive what the rate for the payout/lost Time actually was. For the example above, the rate would be $9.97/hour.This component is provided for this requirement. Prior Year Time Payout/lost 75 hours $ 747.50
If not required, it is not necessary to define the component.
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