Single Payments Over Multiple Pay Periods

For a special payment (such as a bonus or commission) that applies to more than one FLSA period, the FLSA requires that you prorate it across all the affected FLSA periods. If the bonus is FLSA-eligible, you must use the portion of it that is attributable to an FLSA period when calculating the FLSA rate for that period. To have the system prorate a bonus over multiple FLSA periods, add a new entry on the paysheet with earnings begin and end dates for the period covered by the special payment. (You must create pay calendars and FLSA calendars for the period covered). The system prorates the amount for every FLSA period and recalculates overtime affected by the special payment. This can include future payments.

When you enter an FLSA eligible payment amount for a period that covers multiple FLSA periods in a paysheet, the system assigns a prorated payment amount to each FLSA period that is affected. The system reverses the original payment on the paysheet and replaces it with multiple FLSA periods that cover the payment periods. Each prorated payment equals: payment amount × percent of the number of workdays in the FLSA period over the total number of workdays in the payment period. Thus, the system calculates proration by workday, as defined in the employee's Job record.