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When an employee's average hourly rate (for contract work) for the payroll period is below minimum wage they will require an hourly rate topup. This is calculated based on the average hourly rate.
In some cases a job's topups will be negative. This can happen when one or more of the job's employees were topped-up, but on this job their hourly rate was above minimum wagethey were over minimum wage for this particular job.
For example:
- Bob works on 5 8-hour contract jobs over one week:
- Monday 8 hours at $20 p/h,
- Tuesday 8 hours at $20 p/h,
- Wednesday 8 hours at $15 p/h,
- Thursday 8 hours at $10 p/h and
- Friday 8 hours at $15 p/h.
- His average contract hourly rate is $16 p/h.
- He requires $1.70 p/h to achieve minimum wage (when minimum wage is $17.70).
- The topup cost for Bob on each job is calculated as follows:
- Monday
- Base cost = 8 x 20 = $160
- Topup = 8 x (17.7 - 20) = -$18.40
- Tuesday
- Base cost = 8 x 20 = $160
- Topup = 8 x (17.7 - 20) = -$18.40
- Wednesday
- Base cost = 8 x 15 = $120
- Topup = 8 x (17.7 - 15) = $21.60
- Thursday
- Base cost = 8 x 10 = $80
- Topup = 8 x (17.7 - 10) = $61.60
- Friday
- Base cost = 8 x 15 = $120
- Topup = 8 x (17.7 - 15) = $21.60
- Monday
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