Overtime Pay Calculations on Flat Sum Bonus Payments

To calculate the overtime pay on a flat sum bonus, the system first calculates the regular bonus rate using this formula:

Then, the overtime pay on flat sum bonus is calculated using this formula:

In this example, suppose that on the Overtime on Flat Sum Bonus Table Page:

• Overtime earnings code OTP (time-and-one-half) is mapped to overtime on flat sum bonus earnings code OT3.

• Overtime earnings code DBT (double-time) is mapped to overtime on flat sum bonus earnings code OT4.

1. The user enters information such as flat sum bonus, overtime and double time hours to the payline:

   Field or Control	Definition
   Current Pay Period	09/10/2018 - 09/16/2018
   FLSA Period	09/10/2018 - 09/16/2018
   Flat Sum Bonus (FSB)	$100
   Reg Hours	20 hours
   Holiday Hour (HOL)	4 hours HOL (holiday) earnings code is set up to reduce regular hours, and is not subject to FLSA (Category for FLSA = Excluded)
   OT Hours	10 hours
   Double Time Hour (DBT)	10 hours

   Image: Adding flat sum bonus information to payline

   This example illustrates the fields and controls on the Payline page where flat sum bonus information is inserted.

   

2. The system calculates the regular bonus rate in Pay Calculation, and inserts a new payline that contains the mapped earnings codes OT3 and OT4 in the Other Earnings section. Each earnings code row displays the corresponding number of hours, and the calculated regular bonus rate before the multiplication factor is applied, which is $6.25 ($100 / 16).

   Image: Display of mapped overtime codes, hours and calculated bonus rate on payline

   This example illustrates the fields and controls on the Payline page where mapped overtime codes, hours and calculated bonus rate are displayed.

   

   This payline is system-generated and is not editable.

3. The paycheck displays the calculated hourly rate with the multiplication factor applied and amount for each of the Overtime on Flat Sum Bonus earnings codes OT3 and OT4:

   • Time-and-one-half (1.5) Overtime Pay on Flat Sum Bonus (OT3):

     $6.25 x 1.5 x 10 = $93.75

   • Double-time (2.0) Pay on Flat Sum Bonus (OT4):

     $6.25 x 2 x 10 = $125.00

   Image: Display of calculated hourly rates (multiplication factor applied) and amounts for overtime on flat sum bonus on paycheck

   This example illustrates the fields and controls on the Paycheck Earnings page where the calculated hourly rates (multiplication factor applied) and amounts for overtime on flat sum bonus are displayed.

   

   Detail lines for the Overtime on Flat Sum Bonus calculations are displayed in the PDF version of the paycheck as follows:

   Image: Paycheck in PDF showing overtime pay on flat sum bonus

   This example illustrates the PDF version of the paycheck where overtime pay on flat sum bonus is displayed.

   

In this example, an adjustment (flat sum bonus) has been made to the same FLSA period as the previous example. This action results in a recalculation of the regular bonus rate and overtime payments for that FLSA week. In this scenario, the old bonus rate will be backed out, and a new one calculated.

1. The user enters $200 of flat sum bonus to the payline for the previous FLSA period:

   Field or Control	Definition
   Current Pay Period	09/17/2018 - 09/23/2018
   FLSA Period	09/10/2018 - 09/16/2018
   Flat Sum Bonus	$200 (new payment entered for the FLSA period) ($100 from prior period confirmed check)
   Reg Hours	(16 hours from prior period confirmed check)
   OT Hours (OTP)	(10 hours from prior period confirmed check)
   Double Time Hour (DBT)	(10 hours from prior period confirmed check)

2. The system calculates the regular bonus rate in Pay Calculation, and inserts a new payline that contains the OT3 and OT4 earnings codes in the Other Earnings section with the corresponding number of hours, and the updated regular bonus rate before the multiplication factor is applied, which is $18.75 ($300 / 16). The $300 amount is the sum of the newly entered $200 and the $100 from the confirmed check of the prior period.

   Image: Display of mapped overtime codes, hours and updated bonus rate on payline

   This example illustrates the fields and controls on the Payline page where mapped overtime codes, hours and updated bonus rate are displayed.

   

   The old regular bonus rate of $6.25 is backed out:

   Image: Backing out of old bonus rate on payline

   This example illustrates the fields and controls on the Payline page where the old bonus rate is backed out.

   

3. The paycheck displays the updated hourly rate with the multiplication factor applied and amount for each of the Overtime on Flat Sum Bonus earnings codes OT3 and OT4:

   • Time-and-one-half (1.5) Overtime Pay on Flat Sum Bonus (OT3):

     $18.75 x 1.5 x 10 = $281.25

   • Double-time (2.0) Pay on Flat Sum Bonus (OT4):

     $18.75 x 2 x 10 = $375.00

   Image: Display of updated hourly rates (multiplication factor applied) and amounts for overtime on flat sum bonus on paycheck

   This example illustrates the fields and controls on the Paycheck Earnings page where the updated hourly rates (multiplication factor applied) and amounts for overtime on flat sum bonus are displayed.

   

   The old overtime pay amounts ($93.75 and $125.00) that were calculated using the old regular bonus rate ($6.25) are backed out:

   Image: Backing out of old bonus rates on paycheck

   This example illustrates the fields and controls on the Paycheck Earnings page where the old bonus rates are backed out.

   

   Detail lines for the updated Overtime on Flat Sum Bonus calculations are displayed in the PDF version of the paycheck as follows:

   Image: Paycheck in PDF showing updated overtime pay on flat sum bonus

   This example illustrates the PDF version of the paycheck where updated overtime pay on flat sum bonus is displayed.

   

If a flat sum bonus spans multiple FLSA periods, the system splits the flat sum bonus earning automatically into the appropriate FLSA periods, following the same method currently used to prorate a production bonus across multiple FLSA periods.

In this example, a $200 flat sum bonus is entered on an off-cycle payroll for the period between September 10 and September 23, which includes two FLSA periods:

• First: 09/10/2018 - 09/16/2018

• Second: 09/17/2018 - 09/23/2018

Image: Display of flat sum bonus on paysheet that spans two FLSA periods

This example illustrates the fields and controls on the Paysheet page where a flat sum bonus is applied to two FLSA periods.

During pay calculation, the flat sum bonus amount of $200 is split into these two FLSA periods automatically, $100 for each period:

Image: Display of split flat sum bonus payments for two FLSA periods (1 of 2)

This example illustrates the fields and controls on the Payline page where a split flat sum bonus is added to the first of the two FLSA periods.

Image: Display of split flat sum bonus payments for two FLSA periods (2 of 2)

This example illustrates the fields and controls on the Payline page where a split flat sum bonus is added to the last of the two FLSA periods.

The original $200 bonus for the period of September 10 and September 23 is backed out:

Image: Backing out of old flat sum bonus on payline

This example illustrates the fields and controls on the Payline page where the old flat sum bonus is backed out.

Then, the calculation of overtime due on the flat sum bonus is performed for each FLSA period, as described in Example of Overtime Pay Calculation on Flat Sum Bonus Payment, or Example of Overtime Pay Calculation on Adjusted Flat Sum Bonus Payment (if the transaction includes a prior period adjustment).