When a worker’s wage (base and/or fringe) rate changes during a project, there may be a transition week where hours are worked at two different rates. This article explains how to handle that scenario in Kaster.
⚠️ When You Might Need This
You may need to follow this process if:
- A worker’s project gross pay for the week looks incorrect
- A wage rate changed mid-week
- Hours look correct, but the pay doesn’t match expectations
This usually means the worker had two different rates in the same week and a blended rate was not applied.
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🛠️ How to Handle a Transition Week
For the transition week only, you will need to report a blended (average) rate.
Step 1: Calculate the Blended Base Rate
Use a weighted average based on hours worked at each rate.
Example:
- Old rate (Mon–Wed): $40 base + $20 fringe
- New rate (Thu–Sun): $42 base + $22 fringe
- Total hours: 40 (24 hours at old rate, 16 hours at new rate)
Blended Base Rate:
(24 hrs × $40) + (16 hrs × $42) = $1,632
$1,632 ÷ 40 hrs = $40.80
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Step 2: Calculate the Blended Fringe Rate
(24 hrs × $20) + (16 hrs × $22) = $832
$832 ÷ 40 hrs = $20.80
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Step 3: Enter the Blended Rates in Kaster
For that week only, enter the blended rates for the affected worker:
- Update the Base Rate under the Classifications tab
- Update the Fringe Rate under the Benefits tab
Values to enter:
- Base Rate: $40.80
- Fringe Rate: $20.80
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🔄 After the Transition Week
Once the transition week has been reported and submitted:
- Update the worker’s profile to the new base and fringe rates
- Use the new rates for all future payroll weeks
If another rate change occurs, repeat this process for that transition week.
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💡 Key Reminder
Blended rates should only be used for the transition week. All other weeks should reflect the standard posted rates for that reporting period.