If you want to set up your contractors on a monthly pay schedule, this is how we calculate the amounts based on how their compensation is set:
- If someone has an annual rate, we divide the annual rate by 12. Their monthly payment would be the same every month.
- If they have a monthly rate, we use that monthly rate for the payment. Their monthly payment would be the same every month.
- If they’re on a weekly rate, we divide their weekly rate by 5 to get a daily rate and then multiply that rate by the number of working days in that month. Their monthly payment would vary month-to-month.
- If they’re on a daily rate, we multiply it by the number of works days in the month, like in the example above. Their monthly payment would vary month-to-month.
- If they’re on an hourly rate, we’d ask you to confirm the number of hours you want to pay them for and won’t automatically calculate the amount for each payment.