PeopleSoft Payroll for North America

When setting up PeopleSoft Payroll for North America, remember that PeopleSoft Time and Labor does not provide all the overtime rules to meet FLSA requirements, and PeopleSoft Pay/Bill Management does not provide any rules. You must create your own.

PeopleSoft Pay/Bill Management does not calculate overtime premium pay rates using FLSA regulations. However, it passes information to PeopleSoft North American Payroll in a format that enables that application to compute the premium pay. PeopleSoft Pay/Bill Management handles FLSA premium pay requirements as follows:

1. If the employee is non-exempt and belongs to a paygroup that is configured as FLSA required, the system does not use the overtime pay rate entered in the assignment, but rather it uses the regular time pay rate as the override rate for overtime pay.

2. The system then relies on PeopleSoft North American Payroll to apply the earnings code multipliers on that override rate to compute premium pay. If the employee is exempt or belongs to a paygroup that is not configured as FLSA required, the system will use the overtime pay rate entered in the assignment as the override rate. In these situations, ensure that the earnings code associated with the overtime TRC does not have the multiplier factor; otherwise overtime premium may be compounded—once by the PeopleSoft Pay/Bill Management assignment override rate and again by the earnings code multiplier rate.

Compensation rate codes entered for staffing employees must have the Use FTE field value set to No.

See also the product documentation for PeopleSoft HCM: Payroll for North America.