Oncosts

The bill rate defined by a bill rate rule takes into account any oncosts associated with the pay code or pay code type to which the rule corresponds. Oncosts are additional costs that may be incurred by the agency when employing a payee, such as superannuation or insurance costs, that the agency passes on to the client. Oncosts are assigned to pay codes but are used in the bill rate calculation rather than the pay rate calculation. Therefore, the formula by which a pay rate is calculated is as follows:

(pay code or pay code type rate+ oncosts) + margin or markup = Bill Rate

Note that it is possible to define pay oncosts and bill oncosts. Pay oncosts are used for pay reporting purposes only. It is the bill oncosts, which are assigned to pay codes, that are used in the bill rate calculations.