Example of Overtime Pay Calculation on Flat Sum Bonus Payment (Option 1 - Overtime Paid With One Earnings Code)

Note:

Overtime pay is typically set up in two ways in Payroll for North America, one with one earnings code, and the other with two. The option 1 example describes the overtime pay calculation using one earnings code, which is the common method. The option 2 example describes the overtime pay calculation using two earnings codes: OTP to pay for the straight time hours, and OTQ for the premium portion only.

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:

   Term	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

   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).

   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

   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:

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