How are EB and vacation calculated?
An example is probably the best way to explain this. Let’s say you have the following rates: EB rate for FY 2001 is 21% EB rate for FY 2002 is 22%. Inflation rate for FY2002 is 3%. Budget period is 1/1/01 – 12/31/01 Steve Dowdy is at 100% for the entire period (for simplicity). Steve’s base salary is 100,000 effective 1/1/01 Steve’s salary for the period 1/1 – 6/30 is 50,000. His base salary for the period starting 7/1/ is 103000. (3% inflation), so his salary for 7/1 – 12/31 is 51500. So his total salary for the entire year is 50,000 + 51,500 = 101500. Now EB is calculated. First for FY 2001, 21% of 50,000 = 10,500. Then for FY 2002, 22% of 51500 is 11,330. So total EB is 10,500 + 11,330 = 21,830. Vacation is calculated essentially the same way as EB.
