Understanding Multiple Job Considerations

In many medical, academic, and industrial settings, employees hold more than one job in the same organization. A professor might double as a dean or a doctor as a professor of medicine. Following are some of the considerations to keep in mind when employees hold more than one job in the same organization.

(USA) FLSA Overtime Requirements for Multiple Jobs

The Fair Labor Standards Act (FLSA) of 1937 requires that you pay overtime to nonexempt employees who work more than 40 hours in a week. When an employee has multiple nonexempt jobs in the same organization, Payroll for North America applies the overtime rule to the total hours for all jobs with the same FLSA period.

For example, suppose an employee has two nonexempt jobs:

• Data entry clerk for 22.5 hours.

• Receptionist for 20 hours.

The system adds together the hours and pays overtime for 2.5 hours at the FLSA rate.

Note:

Payroll for North America does not calculate a blended FLSA rate for employees working in multiple companies, because each job would have its own FLSA rate.

(USA) FICA Status Indicator

An employee who holds multiple jobs might be exempt from the Federal Insurance Contributions Act (FICA) in one job, while eligible for FICA in another job. Designate the FICA status of each job on the Job Data - Payroll page in the Job Data component (JOB_DATA).

Tax Calculations

If an employee has multiple jobs with different pay frequencies (weekly, biweekly, and monthly), Payroll for North America calculates the taxes for each job separately, based on the pay frequency. This ensures that you tax an employee's earnings according to the appropriate tax bracket.

Off-Cycle Pay Run

When processing an off-cycle payroll using the right-hand side of the run control page (Off-Cycle group box), do not include multiple-job employees in the same calculation as the single-job employees. You must process the two separately.