How Are Annualized Wages Calculated On The Client Snapshot?

The short answer to this question is - it's complicated.  The long answer depends on whether there are more than a years worth of Payroll Statistics records in the system. 

 

• If the Client has more than a years worth of wages in the Payroll Statistics table, the Annualized wages are simply the sum of the Gross Payroll amounts from Payroll Statistics.
• However, if the client has less than a year in Statistics, then annualized gross pay is calculated like this:
• AnnualGrossPayroll = (360.00/DATEDIFF(d,FirstStatStart,MostRecentStatEnd))* ISNULL(PeriodGrossPayroll,0)         
• Roughly translated Annual gross pay  = (360.0/ number of days between the first pay period start and most recent period end) * SUM(Gross payroll on statistics)
• 360/difference gives you what percentage daily of the year for which payroll has been submitted.
• Multiplying this by the sum of the actual wages gives an estimated total of what wages should be at the end of the year.
• The 30/360 method is a commonly accepted practice used in calculations that divide the year into periods, such as mortgage amortization schedules because it rounds more cleanly. 
• It works as well as 365 when estimating possible payroll and leaves less chance for trailing decimals