Understanding Overtime Payments

This chapter provides overviews of overtime payments, paid overtime, time off in lieu of pay, and delivered overtime elements.

Note. The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for France. Instructions for running the query are provided in the PeopleSoft Enterprise Global Payroll PeopleBook.

See Also

Understanding How to View Delivered Elements

Understanding Overtime Payments

Global Payroll for France delivers a number of different earnings to process overtime hours. The majority of these earnings are defined with an override level of Positive Input, have a calculation rule of Unit x Rate x Percent, and have the Unit (overtime hours) component of their calculation rule set to Payee Level. This means that they must be assigned to individual payees before they can be processed, and require positive input for the Unit component. You can use these earning elements as delivered, modify them to suit your needs, or create your own overtime earning elements.

The delivered overtime earnings assume that overtime hours are calculated outside of Global Payroll for France and then entered into the system through positive input in one of three ways:

• If you are using PeopleSoft Enterprise Time and Labor, the hour data is fed into the Global Payroll system through the automated positive input functionality.

• If your organization uses a third-party time and labor application, the calculation of the different types of work hours is done by that application, and then the data is passed to Global Payroll for processing through automated positive input.

• If you are not using a time and labor application to manage your hourly data, then you must enter the data manually.

Note. Some payees, such as executive managers, are not subject to normal overtime rules. Such payees may not be eligible for overtime. PeopleSoft does not control whether overtime must be paid for each category of payee. It is your responsibility to decide whether to input extra hours for these payees.

Warning! PeopleSoft does not restrict the input of hours that are over the legal limit. It is up to you to apply the law to your setup. If you want an automated method by which to control the input of hours to ensure that they do not exceed the legal limit, you can use PeopleSoft Enterprise Time and Labor.

See Also

Working with Positive Input

Understanding Paid Overtime

Global Payroll for France delivers several different earnings to pay payees for hours worked over the standard scheduled hours. For example HRS COMP 125, HRS SUP 125%, and HRS SUP 150% are used to pay employees for overtime hours at a rate that exceeds the standard hourly rate.

See Also

Earnings

Understanding Time Off in Lieu of Pay

Some overtime may be taken as time off in lieu of pay. These overtime hours are known as bonus hours.

There are two different types of time off in lieu of pay:

• Repos compensateur.

  This type of compensation adheres to statutory rules for its calculation. The rules stipulate that when a payee works over a certain number of hours in a week, the payee is entitled to receive some hours paid with a surcharge as well as some compensatory time off instead of being paid for the overtime.

  PeopleSoft delivers the earning HRS REP COMP to process repos compensateur. To grant time off, use positive input to enter the hours of compensatory time in the Unit component of the earning's calculation rule (Unit x Rate x Percent). Because this earning is used to enter time off in lieu of compensation, it does not resolve to a payment amount. Instead, it contributes the units entered by positive input to the following two compensation hours accumulators:

  • HRS AC RCOMP EX PP.

    This accumulator stores the time off in lieu of compensation that can be taken by the payee. Each time a payee accumulates seven hours of time off in lieu, the accumulator HRS AC RCOMP EX PP increases by one day.

  • HRS AC RCOMP NE PP.

    This accumulator stores any time off in lieu of pay that is less than seven hours. Each time a payee accumulates seven hours of compensatory time off, this accumulator decreases by seven hours.

  The hours that you enter using positive input are split between the HRS AC RCOMP EX PP and HRS AC RCOMP NE PP accumulators based on whether the payee can take time off or the payee has not yet acquired complete entitlement to time off. A payee is entitled to take time off once they accumulate seven hours.

  To reduce the number of hours available to a payee when he or she takes time off, assign the absence take ABT REP COMP to the payee on the Absence Event Entry page with the begin and end dates of the absence, or enter partial hours if the payee takes less than a full day off. The system uses the formula ABS FM DRTS RCOMP to retrieve the hours entered on this page and to reduce the hours available in the repos compensateur accumulators.

  Note. Payees can take time off in lieu of pay by the half-day or complete day. When a payee takes a paid half-day or complete day off, the entitlement is decreased accordingly.

  Note. When payees acquire compensatory time off, the system prints a message on the payslip to notify them that the entitlement is available along with a message indicating the date by which they must use the time off. The date by which they must use the time off is the end of the current pay period plus two months.

  Note. Global Payroll for France does not manage the loss of entitlements if a payee does not take time off in lieu of pay during the two months following the acquisition of the entitlement.

• Récupération d'heures.

  This type of compensation is not controlled by regulations and companies can decide whether to apply this rule. It enables a payee to take some compensatory time off instead of being paid for overtime.

  PeopleSoft delivers the earnings HRS BOS 100% and HRS BOS 10% to process Récupération d'heures. To grant time off, use positive input to enter the hours of compensatory time in the Unit component of each earning's calculation rule (Unit x Rate x Percent). The hours entered for the earning HRS BOS 100% (converts 100 percent of the hours to compensatory time off) and HRS BOS 10% (converts 10 percent of the hours to compensatory time off) are added to the accumulator HRS AC HRS BOS SG. Because these earnings are used to enter time off in lieu of compensation, they do not calculate a monetary amount; instead, they pass the hours entered in the Unit component to the HRS AC HRS BOS SG accumulator.

  To reduce the number of hours available to a payee when he or she takes time off, assign the earning HRS BOS 100% or HRS BOS 10% to the payee using positive input and enter the hours taken (using a negative value) in the Unit component of each earning's calculation rule. The system then reduces the hours available in the récupération d'heures accumulator.

  Note. When payees acquire a compensatory day off, the system prints a message on the payslip to notify them that the entitlement is available.

See Also

Entering and Processing Absences

Working with Positive Input

Delivered Overtime Elements

This section discusses the earning element and other delivered elements.

Earnings

PeopleSoft delivers earnings for overtime, but does not maintain these elements.

Global Payroll for France assumes that the pay period is monthly and that the pay period always starts on the first day of the month. If the pay period is monthly, but the pay period does not start on the first day of the month, you can modify the formula HRS FM PRIMES TX to put the first day of the month in the variable HRS VR PRIM DATE. If the pay period is not monthly, you should evaluate the delivered rules and adapt them to the pay periods used by your organization.

The usual calculation method for overtime earnings is Unit x Rate or Unit x Rate x Percent, where:

• Unit is a variable that stores the number of hours (entered by positive input).

• Rate is a formula that calculates the hourly rate.

• Percent is a variable that contains the percentage of the surcharge. Modify this percentage if your company is over the legal percentage.

Note. If you want to pay overtime hours at rates different than those stipulated by law, modify the earning elements to do so. In some cases—for example, HRS SUP 125%— PeopleSoft includes the surcharge percentage in the name of the element. If you modify the percentage in such a delivered element, then the name of the element and the percentage it represents will not match and this could prove confusing to your payroll personnel. In such cases, PeopleSoft recommends that you create your own elements.

This table lists the earnings that PeopleSoft delivers for overtime processing:

The element group HRS EG OVERTIME includes all of the earnings used to process overtime hours.

Note. PeopleSoft delivers a query that you can run to view the names of all delivered elements designed for France.

Managing Rates Used in Overtime Earning Calculations

In Global Payroll for France, the rate used to calculate overtime pay is based on the employee's base salary. If, during a month, the base salary changes and there is element segmentation of the base salary element, the overtime rate could change from one week to another. For this reason, for all of the earnings listed in the previous table except HRS REP COMP, you can override the system element RATE AS OF DATE. This system element is used to determine the correct hourly rate for overtime work. By default, the RATE AS OF DATE is the segment end date, and the system retrieves the rate that is active as of this date. However, you can define the RATE AS OF DATE as the last day of the week if you want overtime pay to be calculated with the effective-dated rate code for the specific week in which the overtime hours were worked. For example, if your standard pay period is monthly, but you enter overtime on a weekly basis, you might need to override the RATE AS OF DATE when there is a salary change in the middle of the month, as the rate code values used in the calculation of overtime can vary based on salary amounts, and the correct rate to apply would be the rate in effect for the employee just prior to the salary change—not the rate in effect at the end of the monthly pay period. If you do not need to capture salary changes during the month and prefer to apply the same rate for the full month, you can simply record one positive input entry with the sum of each week's overtime hours.

Note. To override the rate as of date, enter a supporting element override for the system element RATE AS OF DATE at the same time that you enter positive input for the overtime earning. The system will then use the rate code that is "active" as of this date.

Managing Premiums

In some cases, the rates used to calculate overtime pay may consist of the rate code value plus a premium added to this value. In Global Payroll for France, the premiums that are added to the standard rate are contained in the accumulator HRS AC CAL PRIM SG. You are responsible for maintaining this accumulator, and for maintaining the formula HRS FM SALBAS TX H which retrieves the correct rate code values. To add a premium to the base salary used to calculate overtime pay, modify the HRS FM SALBAS TX H formula as follows:

ER[SALAIRE BASE] + AC[HRS AC CAL PRIM SG]>> FM[HRS FM SALBAS TX H]

Note. PeopleSoft does not deliver earnings that use the specific rate premium setup described here; if you decide to create such earnings, you should define the premium and add it to the accumulator HRS AC CAL PRIM SG so that it is considered in the overtime rate calculation.

Note. You can use the system element RATE AS OF DATE to retrieve the premiums of the current month or of the previous month. This is because some companies pay overtime hours with a one-month delay.

Other elements

The following tables list the elements that PeopleSoft delivers for TEPA overtime processing:

The following table lists the delivered formulas for TEPA overtime processing:

The following table lists the delivered deductions for TEPA overtime processing:

The following table lists the delivered earnings for TEPA overtime processing:

The following table lists the delivered accumulators for TEPA overtime processing:

The following table lists the delivered sections for TEPA overtime processing:

The following table lists the delivered element groups for TEPA overtime processing:

Additional delivered TEPA updates are:

• DUCS set up (included the 260 code for CSG and CRDS).

• The standard payslip (GPFR01) includes a row for deductible CSG and CRDS

See Also

Working with Positive Input

Viewing Delivered Elements

Defining Earning and Deduction Elements