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I pay my 3 employees 50% of all jobs I get and keep 50% myself.

Of their 50%, employee A gets 44.12%, employee B gets 29.41% and employee C gets 26.47%.

So if a job is worth $10,000, I get $5000, employee A gets $2206, employee B gets $1470.50 and employee C gets $1323.50.

If the employees worked for a certain amount of days for that money, (eg 5, so their pay / 5 to get a per day pay), how would I work out how much to deduct from 1 employees pay if they took a day off and reallocate that money to the other employees based on their share?

Ill be looking to use this in a spreadsheet so any help is greatly appreciated.

James
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2 Answers2

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Whichever employee has taken time off you would take the percentage value they normally recieve and subtract it from 100.

Then for each of the other 2 employees take their percentage 'cut' and divide it by the previously calculated value and then multiply it by 100. This will give you their new percentage cut in relation to the other employee.

Finallly pay out the total value of the job in the new percentage ratios to the working employees, depending on how many days one employee takes off.

Hopefully this helps.

EDIT For example, on a job that costs 10000, worker A takes 2 days off. So for these 2 days the payment percentage between the other 2 employees is :

  • Worker B: $0.5*10000*\frac{2}{daystofinishjob}*\frac{29.41}{100-44.12}$

  • Worker C : $0.5*10000*\frac{2}{daystofinishjob}\frac{26.47}{100-44.12}$

Jack Pedley
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  • Would you be able to write out an example of this for me? How exactly does it work with days off out of a total? Thanks, im having trouble getting me head around it! – James Sep 09 '15 at 09:34
  • Ive edited it now with an example using the individual values for days where someone was off. – Jack Pedley Sep 09 '15 at 10:04
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Each worker should be paid $\frac{d_ip_i}{d_1p_1+d_2p_2+d_3p_3}$, where $d_i$ is the number of says worker $i$ actually worked and $p_i$ is the original percentage allocated to worker $i$ if they all work the same number of days.

Shahar Even-Dar Mandel
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  • It does. This is what the multiplication by $p_i$ takes care of. Using the numbers in the question and plugging them into the above expression I got:

    If worker 1 takes a day off the the updated percentage list is: (38.7,33.2,29)

    If worker 2 takes a day off it's: (46.9,25,28.1)

    And if worker 3 takes a day off it's: (46.6,31,22.4)

     – Shahar Even-Dar Mandel Sep 09 '15 at 09:47
  • So going on employees working 5 days each the formula would be (15100)/(544.12)+(529.41)+(526.47), then use that formula to work out the shares of the $5000? – James Sep 09 '15 at 10:01
  • No. The formula is for employee $i$, and you should calculate for each of them separately. Note that if all of them work the same number of days then the $d_i$ in the numerator cancels out with the identical $d_i's$ in the denominator and you are back to the original percentages. – Shahar Even-Dar Mandel Sep 09 '15 at 10:04
  • Yes, of course. This is only for their percentage out of the fixed 50% they get to begin with (as you can see in the numerical result above the percentages sum up to 100%, not to 50%) – Shahar Even-Dar Mandel Sep 09 '15 at 10:10
  • Ok, just so I can understand your explanation aswell, could you write out an example using real number with your formula? – James Sep 09 '15 at 10:11
  • Ah yes I see now, Your formula is based on a per job basis, Nice. I'll remove my comments – Jack Pedley Sep 09 '15 at 10:14
  • Let's say employee 1 in your example took a day off, then he should be paid $\frac{p_1d_1}{p_1d_1+p_2d_2+p_3d_3}=\frac{44.12\times 4}{44.12\times 4+29.41\times 5+26.47\times 5}=0.387=38.7%$. For the other employees you should simply change the numerator. – Shahar Even-Dar Mandel Sep 09 '15 at 10:15
  • So to complete it it would be multiplied by $0.5*J_i$ where $J_i$ is the value of the job – Jack Pedley Sep 09 '15 at 10:18
  • Thank you guys so much! That written out with the numbers Ive been using makes sense now! – James Sep 09 '15 at 10:20