Average Earnings Dropout and Adjustment
These inputs exclude or adjust earnings units based on zero earnings or amounts measured from selected Reported Amounts.
- Exclude an earnings amount if there are $0 earnings earned during a period: Excludes a zero-earnings period from the average.
- Exclude an earnings amount if the sum of the following Reported Amounts during its period is less than some threshold: Excludes an earnings period when its combined dropout Reported Amounts fall below the selected threshold. For example, an hours threshold can exclude years with fewer than 1,000 hours.
- Fixed Threshold: Uses the entered threshold for every period in this provision.
- History of Thresholds: Uses thresholds that vary by effective date.
- History: Opens the threshold history to review or change the effective-dated values.
- Adjust threshold amounts for partial periods: Reduces the exclusion threshold in proportion to a partial period.
- Include amounts below threshold if increases the average: Retains a below-threshold period when including it increases the average.
- Adjust an earnings amount if the sum of the following Reported Amounts during a period is less than the following Adjustment Threshold (and greater than the above threshold): Adjusts earnings when the combined dropout amounts are above the exclusion threshold but below the Adjustment Threshold. The adjustment is determined by the method and ratio below.
- Adjustment Determination:
- Method: Choose Multiply by adjustment to multiply earnings by the Ratio Numerator divided by the combined dropout amounts. Choose Divide by adjustment to divide earnings by the combined dropout amounts divided by the Ratio Denominator. The methods produce the same result for the same ratio value unless rounding changes the adjustment.
- Adjustment Threshold: Sets the upper bound of the Reported Amount range eligible for adjustment. The exclusion threshold is the lower bound.
- Ratio Numerator/Denominator: Sets the target amount used in the selected method. For example, with a target of 2,000 hours and 1,500 measured hours, Multiply uses 2,000 / 1,500; Divide uses 1,500 / 2,000.
- Rounding of Adjustment:
- Round Type: Selects how the adjustment factor is rounded before it is applied to earnings.
- Round Unit: Sets the rounding increment.
- Alternate Round Unit: Supplies the alternate increment when required by the selected rounding method.
- Adjustment Determination:
- Reported Amounts: Lists the sources combined to test the exclusion and adjustment thresholds. These are the dropout amounts, such as hours, used to evaluate each earnings period.
- Add (+) / Delete (−): Adds a dropout Reported Amount row or removes the selected row.
- Edit a row: Double-click a row to open Average Earnings Dropout Reported Amount and set its source, combination, and allocation.
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