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Pay: Contractors, by the Tree Count

Contractors can be paid according to the number of trees they harvest.  There are two tree count fields (optional) that can be enabled on your contractor time slips.  For example, you might want to track the count of conifer trees separately from deciduous trees.  Either one or both of these fields can be enabled by an administrator so that you can enter your tree count data on the time slip.

Case I.  You only pay on tree counts (no hourly pay).  

You would set up the contractor (and worker) as you normally would. 

On the time slip, you can enter 0.0 for the hours performed.  (Alternatively, you can enter his actual hours, if you want to track them for informational purposes, and then set up a corresponding $0.00 hourly rate for the worker.) 

When setting up pay rates, you would only enter a rate with a rate type of 'TREE'.  This rate will be applied to your tree counts (one or both added together) to determine pay. 

Notes: 

1.    If you enter two pay rates for the worker, one for TREES and one for HR, both rates will be applied.  The worker's (contractor's) pay will be the sum of the tree volume pay and the hourly pay.  (The payments will, of course, display separately on the statement for the contractor.)

2.    If you enter 0.0 for the hours on the time slip, equipment hours will also be set to 0.0.  If this contractor operates your company's equipment, the equipment cost (for your own equipment) and utilization data will de distorted because the equipment hours will be inaccurate.  Internal equipment costing only uses hourly time entries -- it does not use the tree count fields.  If you want to track your equipment utilization, your best bet is to set up a rate of $0 per hour for the contractor, and enter the actual hours worked so the hours can be used to cost your equipment.

Case II.  You pay on tree counts and by the hour (e.g. a contractor gets $15.00 an hour plus $0.25 per tree).  

You would set up the contractor (and worker) as you normally would. 

On the time slip, you can enter the number of hours of work performed and the number of trees.

When entering pay rates, you would enter a rate with a rate type of 'TREES' for this person.  This rate will be applied to your tree counts (one or both added together) to determine pay.  You would also enter a rate with a rate type of 'HR'.  When processing pay, both rates will be applied. 

Steps:

1. Set up the Contractor.  Select Setup | Vendors from the Main Menu

2. Set up the Worker. Select Setup | Workers | Worker Setup from the Main Menu.  Enter the worker's name, and indicate that the contractor set up in step 1 is his/her employer.  (If the contractor is a single, self-employed contractor, simply re-enter his name in the worker setup list, and indicate that his employer is the entry you made for this person in the vendor list in step 1.) 

3. Set up Worker Base Rate.  Select Setup | Workers | Worker Base Rates.  Select the Tab 'Employee Base Rates'.  You will need to enter a rate with a rate type of 'TREE'  

4. Set up the Equipment Unit that the worker is operating. Select Setup | Equipment / Trucks | Equipment | Unit Numbers.  (Your company should be specified as the owner if the piece of equipment this contractor operates is owned by your company, and you should be sure you have an equipment cost set up for the unit. If the machine is owned by its operator or owned by another contractor, the owner should be indicated during this step.) 

5. Enter Contractor Time Slip.  Select Data Entry | Time Slips | Subcontractors | Enter Slips.

6. Run Employee Calculator (optional).  Select Calculators | Employees - Full.  This step is not altogether obvious.  When you have contractors operating your own equipment you still need to run the employee calculator in order to calculate your own internal equipment cost.  When contractors are running their own equipment or another contractor's equipment, this step can be skipped. 

7. Run Vendor (Contractor) Calculator.  Select Calculators | Vendors - Full. This step will calculate payment for your contractor who is paid by the Tree Count.

8. Review Vendor (Contractor) Statement.  Select Reports | Contractor Statements.  Alternatively, Select  Reports | Hourly | Contractors.

Troubleshooting Common Errors:

"[1]: Error #3006: CONTRACTOR HOURLY/TREES -- PAY_CONTRACT_RATE not Set up For: WORKER = [TEATHER]; VENDOR = [TEATHER]; ACTIVITY = [FELLER BUNCH - THINNING] AND TIME_SLIP_DATE = [7/30/2005] Ref= [9948] " (Vendor Calculator)

This error occurs when a valid pay rate is not found for the time entry for the contract worker for a certain date.

Things to check when this error occurs:

• Is there a pay rate set up for the worker?  Check under Setup | Workers | Worker Base Rates from the Main Menu. 
• Is the effective date of the rate on or before the date for pay of the time slip with the error?  If not, the system cannot apply this rate to the time slip.
• Check the 'Rate Type.'  The Rate Type must be set to 'HR' in order to pay hourly contractors.

2.    The Wrong Rate is Applied.

Things to check when this problem occurs:

• Are there multiple rates setup for the same worker?  If so, check the effective dates to make sure you have them set up correctly.  The Logger's Edge will use the rate that is (1) prior to the time entry, and (2) the most recent of those that are prior to the time entry.
• Is there a rate with a basis of 'TREE'?  If you want to pay by Tree Count, you must have a rate with the basis 'TREE' specified.  (If you want to pay by Tree Volume you must have a rate with the basis of 'TREE_VOL' specified.)

3.    Too Many Rates (Multiple Rates) Applied.

• Are there multiple rates with a basis of 'TREES', 'HR' and 'TREE_VOL'?  If you only want to pay by Tree Count, you must have only one rate (with the basis 'TREES' specified).  You need to delete or modify the rates with a basis of 'HR' and or 'TREE_VOL'.