Bi-yearly 18 Calculating Paralegal Performance Based Pay

Calculating Paralegal Performance Based Pay
in January and in July

Chantel‘s Key               Other Office Information

DO THIS 2 TO 4 HOUR TASK BEFORE CALCULATING LAWYERS PERFORMANCE BASED PAY.

Step 1: in Dropbox, 0pen FM “2 Prlgl pay calculator.fmp12” on your computer, open window fully (downward). Create a new record for each Paralegal by using the NEW link following their name. Clicking their Name finds all their records. Ensure each new record is at the bottom of found list by changing the Sort numbers in Column “X” if necessary.

If you are doing this in January, for each of these new records, in field “Paralegal / lookback period / pay calc for period” use existing records or wording as follows:
a. copy text between the following quotes “Julie / Jul – Dec 202n / Jan – Jun 202n+1”, paste in 1st new record.
b. copy text between the following quotes “Jackie / Jul – Dec 202n / Jan – Jun 202n+1”, paste in 2nd new record.
c. copy text between the following quotes “Erika / Jul – Dec 202n / Jan – Jun 202n+1”, paste in 3rd new record.
d. copy text between the following quotes “Amanda / Jul – Dec 202n / Jan – Jun 202n+1”, paste in 4th new record.
Ensure the (4) digits for the years are corrected as necessary.

If you are doing this in July, for each of these new records, in field “Paralegal / lookback period / pay calc for period” use existing records or wording as follows:
a. copy text between the following quotes “Julie / Jan – Jun 2021 / Jul – Dec 2021”, paste in 1st new record.
b. copy text between the following quotes “Jackie / Jan – Jun 2021 / Jul – Dec 2021”, paste in 2nd new record.
c. copy text between the following quotes “Erika / Jan – Jun 2021 / Jul – Dec 2021”, paste in 3rd new record.
d. copy text between the following quotes “Amanda / Jan – Jun 2021 / Jul – Dec 2021”, paste in 3rd new record.
Ensure the (4) digits for the years are corrected as necessary.

Step 3 is a preparation step for entering values in Column A.  To find any training hours spent with new employees:  find Charges for Date range of recent prior semester; Staff “All”; and Charge Type “training, upgrading forms”. In records found Sort by “Work By” and note if any Paralegals have credit coming. If so, find Charges, for Date range of recent prior semester; Staff “each Paralegal in turn”; and Charge Type “training, upgrading forms”. In records found, (1) use “Edit” on each record to ensure each Paralegal billing for Training has “Marilyn” as Delegator (otherwise Associates profit from delegated pro bono billing) and (2) note at bottom of page the “Total hours of no charges, all pages” for each Paralegal. Investigate hours and/or accept them as is and add a concise note in “Description” column such as “02:25 added to Col A for training”. It does not matter if all of the note shows.

Step 4: Column A, open ML Dashboard on Firefox; Select Reports, Staff Billing Summary, Select proper date range of appropriate lookback period and select Role: “Paralegal”. Wait for it to finish “Processing.”; select & copy “Hours” (use first number shown, not the larger one that includes no charges); paste into “2 Prlgl pay calculator.fmp12” in Column “A” for each Paralegal’s new semester record. Ensure format is always hh:mm (never omit digits for minutes even if “:00”). Add to these hr:min any training hr:min from Step 3 above.  Insert this total hr:min into Column A. Now this total will include pro bono hours and training hours.  

Step 5: Column A2 is the total from Step 3 (training hours) above added to pro bono hours. To find such pro bono hours:
a.  Get report from ML, Transactions, Clients, set Staff to each Paralegal in turn, Client Type Pro Bono.  Copy all client names whose Last Payment was in the last 12 months.
b.  Get report from ML, Transactions, Charges:  Start Date at beginning of lookback period; End Date set at ending date of lookback period; Charge Type All; set Staff to each Paralegal in turn; search by each of that Associate’s assigned Clients in turn, from “a” above.  In records found, use “Edit” on each record to ensure each Paralegal billing for pro bono has “Marilyn” as Delegator (otherwise Associates profit from delegated pro bono billing).  Note “Total hours with charges, all pages” at bottom of hr:min column for each pro bono client and add them together.  That total should be added to total Training Hours and the grand total entered into Column A2.

Step 6: Column B comes from ML Dashboard: select digits only (do not include “%” sign) & copy “Last 6 Cal. Mos. % Collections” for the higher value of that Individual’s % collections or Group % collections up to a max of 100%.

Examples:
If that individual’s % collections = 98.1% and Group collections = 101.2%, use 100
If that individual’s % collections = 98.1% and Group collections = 99.5%, use 99.5
If that individual’s % collections = 102.4% and Group collections = 101.3%, use 102.4
If that individual’s % collections = 102.4% and Group collections = 98.7%, use 102.4

Step 7: from “5 Awards Monthly.fmp12”, find the appropriate (6) months in the lookback period and scroll right until Columns Z1,  Z2, and Z3 appear.  For each Paralegal with (12) or more in their Column Z1 and (24) or more in their Column Z3, select “Yes” in “2 Prlgl pay calculator.fmp12”, Column C, otherwise select “No“.

Note: it is important to motivate Paralegals to do Collection Attempts to help keep % Collections high. Besides monthly Awards designed to motivate Paralegals to do Collection Attempts, Performance based pay also motivates.

Bonafide Type 1 collection attempts means a Paralegal talked directly to the Client; or she left a message via recordings, mail, email, etc. and a reply was received back from the Client.

Bonafide Type 2 collection attempts means a Paralegal asked a Business Staffer to make a collection attempt and she passed on detailed information of value such as: (1) about a Client’s ability to pay us; or (2) about specific work that is anticipated that the business staff member would not likely know about otherwise; or (3) a high-maintenance client that will cause a case to be more expensive and the Client needs to be called and pay ahead.

When a “yes” is selected and when Group % Collections for last 6 months > 95%, a Paralegal gets an upward Pay adjustment. Example: if a Paralegal qualified on Collection Attempts and Group Collections averages 98.2% for last 6 months, her gross pay next 6 months is multiplied by 98.2/95.

When a “yes” is selected and when Group % Collections for last 6 months < 95%, a Paralegal gets NO downward Pay adjustment. Example: if a Paralegal does not qualify on Collection Attempts and Group Collections averages 94.3% for last 6 months, her gross pay next 6 months is multiplied by 94.3/95.

When a “no” is selected and when Group % Collections for last 6 months > 95%, a Paralegal gets NO upward Pay adjustment.

When a “no” is selected and when Group % Collections for last 6 months < 95%, a Paralegal gets a downward Pay adjustment. Example: if a Paralegal does not qualify on Collection Attempts and Group Collections averages 94.3% for last 6 months, her gross pay next 6 months is multiplied by 94.3/95.

Step 8: Column D comes from ML Reports, Staff Billing Summary found per above: select & copy “$/Hour”; paste into “2 Prlgl pay calculator.fmp12” in appropriate Column “D” for each Paralegal’s new record.

Step 11: Column F comes from “6 Calc referral credits v2.fmp12”.
a. Staff Members are supposed to notify Mollie, Marilyn, and Ray about Referrals that they “own”. On or soon after 1/1 and 7/1, email all employees with the following message:
“Please remind Mollie, Chantel, Marilyn, and Ray of any new Referral Clients in the most recent pay period that you are claiming for Gross Pay award purposes.”
b. Look for notes in each Staff Member’s prior pay records concerning such Clients referred and calculate and add money to each associate’s Column “F” as appropriate.
c. For guidance in vetting Referrals, go to “OT2” on webpage Awards Program
d. For help in calculating, use “6 Calc referral credits v2.fmp12” for assistance. This calculator uses the following logic:
I. If this is the 1st pay period that a Staff Member will receive some credit for this referral, to determine the amount of money a new referral client has been billed: use ML, Charges with Start Date = 09/01/2011 (yes 2011); End Date = 6/30 or 12/31 of current year as appropriate (end day of recent 6 month pay period); and select “Work by” each Lawyer and Paralegal in turn; add numbers together to determine total. If that Total < $1,000, there is no credit yet for the referring Staff Member. For each Referral Client where that Total > $1,000, multiply that Total by .2, add amounts from each appropriate new Referral and enter that grand total amount in Column “F”
II. If the Staff Member has received some credit for this referral in any prior pay period, to determine the amount of money the referral client has been billed since: use ML, Charges with Start Date = 1/1 or 7/1 (the beginning date of the recently completed pay period; End Date = 6/30 or 12/31 (the end date of the recently completed pay period; and select “Work by” each Lawyer and Paralegal in turn; add numbers together to determine Total. That credit = .2 x Total. Ensure total award per Client Referral does not exceed $1,000.
III. If amount is zero, add a note saying “no referral credits” to “First Name / lookback period / pay calc for period” field.
IV. Add Column “Y” Notes explaining calculation details.

Step 12: copy Column “N” for each Paralegal’s prior record and paste value into her Column “N” new record unless she has elected to change the number which can be equal to or greater than Column “U”. If a Staffer wants to change this number it also needs changed in BofA (Intuit) online payroll.

Step 13: copy Column “O” for each Paralegal’s prior record and paste value into her Column “O” new record. If a Paralegal wants to change this number it needs changed in BofA (Intuit) online payroll as well as here.

Step 14: note Column “U” must match the current year’s 401k % match. It can be arbitrarily changed near the end of each year for the next year by Marilyn but she lets Staff decide the %. It is important because it affects Column LL. This % must be the same for all employees and must match the same number as published in the BofA (Intuit) online payroll for each employee.

Step 15: note Column “W”, Part of Gross: Sr Paralegals, usually use .275; newer less experienced Paralegals, use .25 or some in-between factor. This is a “Tier” method for compensation.

Step 15: Add non-printing Notes in Column “Y” to explain details such as for Referrals. Copy any appropriate text into an email to the Paralegal in Step below.

Step 17: Note Column “LL” is the automatically calculated pay/yr taking into account all the above including Column “U” that has a built-in calculation for whole numbers 4 – 10. For any other number, the “2 Prlgl pay calculator.fmp12” field definition “LL total gross pay per year for 401k” must be appropriately modified which only Ray and maybe Wes can do.

Step 19:
a. Take a screenshot of each Paralegal’s “2 Prlgl pay calculator.fmp12” results to include black dots at top right and bottom right.
b. Email above screenshot and below “6 Calc referral credits.fmp12” screenshot if any to Paralegal, and appropriate words such as examples that follow:
Please scrutinize data in the attached pay calculation for this semester, especially scrutinize the:
1. added notes
2. column A through F data entries (look for possible errors)
3. column 0, IRS exemptions for possible changes
4. column F, client referral detailed credit calculations
5. column N, 401k contributions for possible changes
Please let me know 3 days or more before mid-month payday if you approve.
Please scrutinize your next paycheck stub to ensure that you understand all details. If you don’t, ask questions. Thank you for all your fine work and contributions that make this office so successful.

Step 20: Follow instructions on “6 Calc referral credits.fmp12” to compute Referral Credit; take a screenshot of each Staffer’s results to include black dots at top right and bottom right.

Step 21: Upon acknowledgment or approval by each Paralegal, update the number in Column “LL” to BofA (Intuit) online payroll for each employee by January 10 or July 10 as appropriate.