Example of Overtime Pay Calculation on Flat Sum Bonus Payment (Option 2- Overtime Paid With Two Earnings Codes)

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

• Overtime earnings code OTP (straight time) is mapped to overtime on flat sum bonus earnings code OT3.

  Setup for the OTP earnings code:

  • Payment Type: Hours Only

  • Effect on FLSA: Both Hours and Amount

  • Multiplication Factor: 1.0

  • Category for FLSA: Overtime

  • Regular Pay Included: [Cleared]

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

  Setup for the OTQ earnings code:

  • Payment Type: Both Hours and Amount OK

  • Effect on FLSA: None

  • Multiplication Factor: 0.5

  • Category for FLSA: Overtime

  • Regular Pay Included: [Cleared]

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

   Term	Definition
   Current Pay Period	12/30/2018 - 01/05/2019
   FLSA Period	12/30/2018 - 01/05/2019
   Flat Sum Bonus (FSB)	$245
   Reg Hours	40 hours
   OT Hours - Straight Time (OTP)	3.5 hours
   OT Hours - Half Time (OTQ)	3.5 hours

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

   

   The system calculates the regular bonus rate, which is $6.125 ($245/40) in this example, in Pay Calculation.

2. The paycheck displays the calculated hourly rate (hourly rate or regular bonus rate, with the multiplication factor applied) and amount for each of the Overtime earnings codes (OTP and OTQ) and Overtime on Flat Sum Bonus earnings codes (OT3 and OT4) in the Other Earnings section of the paycheck:

   • Straight time (1.0) Overtime Pay (OTP):

     $41.734135 x 1.0 x 3.5 = $146.07

   • Half time (0.5) Overtime Pay (OTQ):

     $41.734135 x 0.5 x 3.5= $73.03

   • Straight time (1.0) Overtime Pay on Flat Sum Bonus (OT3):

     $6.125 x 1.0 x 3.5= $21.44

   • Half time (0.5) Pay on Flat Sum Bonus (OT4):

     $6.125 x 0.5 x 3.5 = $10.72

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

   

   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.

   

3. Suppose that in a slightly different scenario, a $200 FLSA-eligible bonus BNS is also added to the payline:

   This example illustrates the fields and controls on the Payline page where FLSA-eligible bonus, flat sum bonus, and overtime information is inserted.

   

   With an FLSA-eligible bonus in the pay period, the system calculates the FLSA rate to be used in overtime pay as follows:

   (Regular period pay + Overtime pay at contractual + Total other FLSA eligible earnings) / Total FLSA eligible hours

   ($41.734135 x 40 + $146.07 + $200) / (40 + 3.5) = $46.331954

   The OTQ overtime pay is excluded from the calculation because the earnings code is set to have no effect on FLSA.

4. The paycheck displays the calculated hourly rate (with the multiplication factor applied) and amount for each of the Overtime earnings codes (OTP and OTQ) and Overtime on Flat Sum Bonus earnings codes (OT3 and OT4) in the Other Earnings section of the paycheck:

   • Straight time (1.0) Overtime Pay (OTP):

     $46.331954 x 1.0 x 3.5 = $162.16

   • Half time (0.5) Overtime Pay (OTQ):

     $46.331954 x 0.5 x 3.5= $81.08

   • Straight time (1.0) Overtime Pay on Flat Sum Bonus (OT3):

     $6.125 x 1.0 x 3.5= $21.44

   • Half time (0.5) Pay on Flat Sum Bonus (OT4):

     $6.125 x 0.5 x 3.5 = $10.72

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

   

   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.

   

   The FLSA-eligible bonus has no impact on the calculation of overtime pay for employees who get flat sum bonus payments.