California Flat-Sum Bonuses

Flat-sum bonuses earned in California require special overtime calculation. Their calculation method is based on the employee's regular hours only and results in a higher overtime rate than the federal method.

To configure elements for California flat-sum bonuses:

1. Define the Earnings element for the bonus.

   1. Start the Elements task, and click Create.

   2. Select your US legislative data group.

   3. Select the Supplemental Earnings primary classification.

   4. Select the Bonus secondary classification.

   5. Select the Flat calculation rule.

   6. Select Yes to the overtime rules prompts.

   7. Submit the element definition.

   8. In Element Summary, edit the definition in correction mode.

   9. In Element Information, select CA as the state.

   10. In Premium Calculation Method, select Alternate bonus calculation method.

   11. Click Save and Submit.

2. Define regular and premium overtime elements.

   For further info, see Configure Overtime Rate Elements for the US in the Help Center.