Understanding Effective Date within Rates

Rate tables are one of the most critical components within Entire OnHire Finance. They define how both member pay rates and client charge rates are calculated. Without correctly configured rate tables, all payroll and invoicing calculations would default to $0.00, preventing accurate billing and payment processing.

What Is a Rate Table?

A rate table contains the following key financial details:

• Member pay rates

• Client charge rates

• Applicable allowances

• Effective date – the date from which those rates become active and valid for payroll and invoicing

The effective date is the second most important element within a rate table, as it determines which rates apply on a specific date.

How Effective Dates Work

Effective dates control when a rate table becomes active.
Entire OnHire allows you to create and attach rate tables in advance, so you can plan for seasonal rate changes, contract renewals, or award updates before they are needed.

However, attaching a rate table to a client before its effective date does not mean those rates will apply immediately.
If the rate table’s effective date is set in the future, the system will continue to use the most recent rate table with an effective date equal to or before the current date.

System Logic: How Rates Are Selected

Entire OnHire automatically applies rates based on the following logic:

The system selects the rate table with an effective date closest to the current date, provided that the date is equal to or earlier than today’s date.

This ensures that payroll and invoicing always use the most current applicable rates.

Example Scenario

Let’s look at an example:

In this scenario, if today’s date is 1 July 2025, the Banking and Finance rates (Rate Table A) will apply because its effective date (1 July 2025) is after the previous rate table’s date (11 April 2025) and is the closest effective date that is equal to or earlier than the current date.

However, if the Banking and Finance rate table (A) had an effective date before 11 April 2025, it would not apply, because the Education rate table (B) would still be recognised as the most recent active table at that time.

This means that for a new rate table to take effect, its effective date must be later than the existing table’s date, ensuring the system logically transitions to the new rates when the date is reached.

Best Practice Tip

Always ensure that the effective date on your rate tables matches the first shift or job date on which the new rates should take effect.
This ensures:

• Accurate payroll and invoicing

• Smooth rate transitions across clients

• Compliance with seasonal or award-related rate updates

In Summary