Spread Calculation

Overview

Spread Calculation involves the following fields at the Placement level:

  1. Pay Rate(s)
  2. Bill Rate(s)
  3. Burden %
  4. Additional Hourly Cost(s)
  5. Non-Billable Per Diem. Billable Per Diem is not factored in since it is a straight pass through.

The following are NOT included in Spread calculation:

  1. Expenses
  2. Taxes
  3. Invoice Adjustments

Spread Calculation

The calculation is as follows:

(Bill Rate - ((Pay Rate * Burden) + Additional Costs)) * Hours Worked = Spread

Example:

There is a $80 bill rate and $40 pay rate with $12 in hourly per diem and a 20% burden. If someone worked 40 hours, the calculation would be:

($80 - (($40 * 1.20) + $12)) * 40 = $800

($80 - ($48 + $12))*40 = $800

($80 - $60) * 40 = $800

$20 * 40 = $800