Configure the Payroll Definition for Overtime Calculation

You select the overtime period time definition when you create the payroll definition. Use the Payroll Definitions task.

You can also override the payroll definition's overtime period at the employee level.

For further info, see Overtime Periods for the US in the Help Center.

Associate an Overtime Period with a Payroll

Part of payroll definition is associating a default time definition to it. The time definition specifies the starting date and length of the overtime period the payroll process uses in the calculation of overtime.

Associating a period to a payroll definition identifies it as the default period for all the workers who are eligible for overtime.

Note: When you associate an overtime period with a payroll definition, the payroll process uses that period for all employees attached to that definition, unless there is an override at the employee level.

To associate an overtime period with a payroll:

1. Start the Payroll Definitions task.

2. Search for and select your payroll definition.

3. Expand Calculation Default Values.

4. In FLSA Overtime Period Override, select an overtime period you defined previously.

   For further info, see Create Overtime Periods for the US in the Help Center.

5. Save and submit.

Select a Premium Calculation Rate Rule

The premium calculation rate rule determines the calculation of the premium portion of overtime. The payroll process uses it to pay the premium portion of overtime at a 0.50 default multiple factor or higher, dependent on the business requirements.

You select the premium calculation rate rule during the payroll definition configuration. Use Premium Calculation Rate in the Calculation Default Values region.

Note: The Rate input value on the Element Entries task overrides this value.

Your options are:

If you select this	What it does
Blended Rate	Applies the blended rate to the payroll.
Higher of Blended or Normal Rate	Compares the premium rate with the standard rate, and uses the higher of the two for overtime premium calculation. A higher normal rate could occur in cases where the employee is paid a bonus or commission.