The care agency settles accounts with each other, with the client and with the caregivers. In most cases, rates are set per month worked. However, it is rare that a caregiver starts working for the family on the first day of the month and ends on the last day. This means that the settlements between the parties are too incomplete. Therefore, the question arises: How to calculate the amount due for, for example, 17 days. A daily rate is necessary for this, which must be calculated in some way. In the care industry, there are two main methods for calculating the daily rate from the monthly rate.
Methods for calculating the daily rate
In the Hrily platform for Care Agencies, in the billing configuration, we select and complete:
- Who pays
- VAT rate
- What the position should be called on the account
- For what the rate will be replenished – hour, day, month, service, commission
This article discusses how to calculate a daily rate from a monthly rate. When you replenish the monthly rate, the program will display options for calculating the daily rate.
Monthly rate divided by a fixed value
Some Care Agencies use a fixed value to calculate the monthly rate. For example, this is a value of 30.5 or 30.3. In this case, the monthly rate is divided by the above values and the daily rate is calculated to two decimal places.
In the Hrily application, select Fixed value and enter the appropriate value in the additional field. In this case, for example, the rate of 2000 will be divided by 30.5, which will give us a daily wage of 65.57. This value will be in all calendar months. The number of days in a month does not affect the calculation of the daily wage.
By the number of days per month
Most Care Agencies use the second method of calculating the daily wage. The monthly rate is divided by the number of days in a given month. This is how the daily wage is calculated. As a result, one monthly rate can cause someone to pay 4 different daily rates for one day of work.
The monthly rate is 2000
Months that have 31 days will cause the daily wage to be calculated as follows.
2000 / 31 = 64.51
February in the year when it has 28 days will result in the following calculation of the daily wage.
2000/28 = 71.42
For years in which February has 29 days, the calculation will be as follows.
2000/29 = 68.96
The remaining months have 30 days, so the calculation will be as follows
2000/30 = 66.67
This makes the fee the highest in February, which has 28 days. The CRM program for Care Agency in the case of working a full month, does not calculate the daily wages, and the receivable, which is equal to the monthly rate.
Types of settlements in the Care Agency
Settlements in the care industry where it is necessary to calculate a daily rate include, for example:
- Family pays the Care Agency
- The Care Agency pays the caregiver
- The Care Agency pays a commission to the client’s intermediary
- The Care Agency pays a commission to the caregiver’s intermediary
Comprehensive settlements in Care Agencies
One Care Agency creating a Hrily account can use both methods of calculating the daily rate.
For example, calculating receivables with a partner Care Agency:
- Care Agency A can use the first method 30.5
- Welfare Agency B can use the same method, but use a value of 30.3
- Care Agency C can use the second method.
Within one contract, such a distinction can also be made. Example:
The amount paid by the customer can use the first method – 30.3
The salary of the caregiver may use the second method
The commission of a German broker can be calculated by the first method – 30.5
All configurations are possible. Make an appointment for a presentation of the accounts. We will configure them in 8 minutes.