Markup Percentage and Markup Value Calculations
Overview
Markup refers to the fees charged over and above wages paid to a contract or temporary employee. Markup is calculated or used in calculations for regular, overtime, and double time rates.
Markup Calculations
The placement rate card markup calculations account for these three scenarios:
Calculating Markup % and Markup Value Based on Pay and Bill Rates
Enter the pay rate and the bill rate on the rate card line, for the markup % and markup value to automatically calculate on this formula:
Markup % = (Bill Rate - Pay Rate)/Pay Rate
Markup Value = Bill Rate - Pay Rate
Calculating Bill Rate and Markup Value Based on Pay Rate and Markup %
Enter the pay rate and markup % on the rate card line, for the bill rate and markup value to automatically calculate on this formula:
Bill Rate = Pay Rate * (1 + Markup % )
Markup Value = Bill Rate - Pay Rate
Calculating Pay Rate and Markup Value Based on Bill Rate and Markup %
Enter the bill rate and markup % on the rate card line, for the pay rate and markup value to automatically calculate on this formula:
Bill Rate = Pay Rate * (1 + Markup % )
Markup Value = Bill Rate - Pay Rate
Rate Card Calculation Configuration
Rate card calculations can be configured using these settings:
- Based on Markup % through the Edit Markup Calculates Bill Rate setting. The following two options are available:
- Editing Markup calculates Bill Rate using Pay Rate (default behavior)
- Editing Markup calculates Pay Rate using Bill Rate
- Based on Bill Rate through the Edit Bill Rate Calculates Pay Rate setting. The following two options are available:
- Editing Bill Rate calculates Markup using Pay Rate (default behavior)
- Editing Bill Rate calculates Pay Rate using Markup
- Based on Pay Rate through Edit Pay Rate Calculates Bill Rate setting. The following two options are available:
- Editing Pay Rate calculates Markup using Bill Rate (default behavior)
- Editing Pay Rate calculates Bill Rate using Markup