What is common rate?

 

Common Rate

Pay rates that are set up as a standard at the company level by your service bureau. After a common rate is set up, it can be assigned to employees as a rate of pay. You can also select common rates as a temporary rate on the pay grid during pay data entry. Common rates are usually associated with a job type.

An example of a common rate would be for a restaurant. Frequently, in restaurants, the role of the employee (waiter, host, dishwasher, busboy, and so on.) determines the rate of pay for that employee. And, employees in restaurants typically switch roles frequently; they can be a host one night, a waiter the next, a bartender another night, and so on. Using common rates is an easy way to pick the classification of a waiter, for example, as the rate and know that it is standard across everyone. Also, if the rate changes, for example, if minimum wage goes up and the waiter rate changes, you can make the change at the company level to the common rate and it is automatically updated for everyone who has it.