1. Implementing Payroll Overtime Rates for the United States
  2. Special Overtime Configuration Options for the US

Special Overtime Configuration Options for the US

There are some advanced options available for configuring your overtime.

What you want to do

Here's how you do it

Support overtime for common paymasters

By default, the payroll process calculates the overtime premium rate separately for each tax reporting unit (TRU) by considering the overtime hours and earnings for each. For common paymaster situations where the parent payroll statutory unit (PSU) is representing child TRUs, you can improve the accuracy of your premium overtime rate calculations by aggregating overtime hours across all TRUs within a PSU.

To aggregate hours and earnings across TRUs under a PSU for the overtime premium calculation:

  1. Start the Legal Entity Calculation Cards task to open the PSU calculation card for editing.

  2. Under Component Groups, click Federal.

  3. Under Calculation Components, click Create.

  4. Select the Overtime Rules calculation component, and click OK.

  5. In Overtime Rules: Details, click Enterable Calculation Values on Calculation Cards.

  6. Click Add.

  7. In Edit Calculation Values, select Overtime premium rate calculation level.

  8. Select Payroll Statutory Unit as the value, and click OK.

  9. Click Save.

If you're allowing negative premium adjustments:

  1. Repeat these steps for the appropriate PSU.

  2. In Edit Calculation Values, in addition to Overtime premium rate calculation level, select Allow negative premium adjustment.

    Caution: Consult with your Legal Department or the US Department of Labor to determine if you're allowing negative premium adjustments.

Once you have configured the PSU calculation card, when you run payroll, the process aggregates hours and earnings across the common paymaster for any earnings elements you define with the Premium secondary classification.

Use midday periods for employee time entry

You can split your employees' time entry based on work day definitions. Use the Work Day Definition task to allocate time and absences by midday periods. The entries on the person's time card are allocated based on work day definition.

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

California flat sum bonuses

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

For further info, see California Flat Sum Bonuses in the Help Center.

Allow overtime pay for exempt employees

The Department of Labor doesn't require payment of overtime to employees that fall into an exempt classification. If you elect to pay overtime to those employees:

  1. Add the base overtime element to your exempt employee's element entry.

  2. Do one of the following:

    • Update Rate with the overtime hourly rate to be paid.

    • Update Multiple with the amount that the regular hourly rate should be multiplied by.

You don't use the premium overtime element in this case.

You are solely responsible for determining the eligibility of their exempt status, as well as the rate of pay at which you pay overtime to an exempt employee.

Include augments with overtime pay

Augments are amounts paid to an employee that are:

  1. In addition to their regular rate of pay

  2. Considered nondiscretionary

For further info, see Augment Elements in the Help Center.

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