WFM_TCR_THRESHOLD_TWO_TIER_SEVEN_DAY_AP Fast Formula

This fast formula is associated with the delivered rule template Day Periods and Seventh Day Threshold Template. It compares the total daily, period, or seventh consecutive day hours identified by the time category the corresponding threshold values.

It converts hours over the threshold to a single payroll time type. It leaves hours under the threshold as the same payroll time type or converts them to a new payroll time type. This formula uses an array processing formula.

Parameters

Name Type Description
WORKED_TIME_CONDITION Time category Time category that identifies the time entries to use to determine the hours under and over the thresholds
DAILY_THRESHOLD_1 Fixed number Number of hours marking the threshold for the first day
DAILY_THRESHOLD_2 Fixed number Number of hours marking the second threshold for the first day
SEVENT_DAY_THRESHOLD Fixed number Number of hours marking the threshold for the seventh day
WEEKLY_THRESHOLD Fixed number Number of hours marking the threshold for the weekly time card

Outputs

Name Output Group Time Attribute Description
OUT_MEASURE_ARY_UNDER 1 Measure Calculated hours under the first daily threshold
OUT_MEASURE_OVER_1 2 Measure Calculated hours between the first and second daily thresholds
OUT_MEASURE_OVER_2 3 Measure Calculated hours over the second daily threshold

Function

The general overtime provision requires that people get 1.5 times their regular pay rate when they work more than X hours a day or more than Y hours a week. People can work more than X hours a day or more than 6 days a week if they get overtime pay according to these tiers.

  • The first overtime tier includes all hours worked beyond X hours, up to and including X2 hours in a day. It also includes the first X hours worked on the seventh consecutive day of the week.
  • The second overtime tier includes all hours worked beyond X2 hours in a day. It also includes all hours worked in excess of X on the seventh consecutive day of the week.

Daily Rule:

  • Overtime is based on 2 threshold values or parameters.
  • Hours worked under the first threshold get paid at the regular rate.
  • Hours worked over the first threshold and under the second threshold get paid at an overtime rate of 1.5 times the regular rate.
  • Hours worked over the second threshold get paid at an overtime rate of 2 times the regular rate.

Weekly Rule:

  • Overtime is based on 1 threshold value or parameter.
  • Hours worked under the first threshold get paid at the regular rate.
  • Hours worked over the first threshold get paid at an overtime rate of 1.5 times the regular rate.

Assumption in processing order:

  1. The rule that checks for and processes any seventh day worked hours runs first. Typically, US rules use a threshold of 8 hours and calculate hours under the threshold as overtime and over it as double time.
  2. The daily rules that check thresholds and process any worked hours run next. Typically, US rules have these configurations:
    • Daily double time rule (X2): The daily threshold is 12 hours with calculated hours under the threshold as regular and over it as double time.
    • Daily overtime rule (X): The daily threshold is 8 hours with calculated hours under the threshold as regular and over it as overtime.
  3. The weekly rule that checks the threshold and processes any worked hours runs last. Typically, US rules use a threshold of 40 hours and calculate hours under the threshold as regular and over it as overtime.

Examples

Scenario: The person's rule set includes the following four rules, created with this formula.

Processing Sequence Rule Parameter Configuration Output Configuration
1 Seventh Day DT and OT SEVENT_DAY_THRESHOLD = 8

PAY _TYPE_UNDER = Overtime

PAY _TYPE_OVER_1 = Double Time

2 Daily Over 12 DT and RT DAILY_THRESHOLD_2 = 12

PAY _TYPE_UNDER = Regular

PAY _TYPE_OVER_2 = Double Time

3 Daily Over 8 OT and RT DAILY_THRESHOLD_1 = 8

PAY _TYPE_UNDER = Regular

PAY _TYPE_OVER_1 = Overtime

4 Weekly OT and RT WEEKLY_THRESHOLD = 40

PAY _TYPE_UNDER = Regular

PAY _TYPE_OVER_1 = Overtime

Example 1: The seventh day and both daily rules don't run, but the weekly overtime rule does.

Day Payroll Time Type Reported Time Calculated Time
1 thru 5 Regular 8h 8h
6 Regular 8h 0h
Overtime NA 8h

Example 2: The seventh day and daily double time rules don't run, but the daily and weekly overtime rules do.

Day Payroll Time Type Reported Time Calculated Time
1 thru 3 Regular 6h 6h
4 thru 5 Regular 12h 8h
Overtime NA 4h
6 Regular 10h 6h
Overtime NA 4h

Example 3: The seventh day rule doesn't run, but both daily rules and the weekly overtime rules do.

Day Payroll Time Type Reported Time Calculated Time
1 Regular 13h 8h
Overtime NA 4h
Double Time NA 1h
2 Regular 6h 6h
3 thru 5 Regular 13h 8h
Overtime NA 4h
Double Time NA 1h
6 Regular 10h 2h
Overtime NA 8h

Example 4: The seventh day, both daily, and the weekly overtime rules all run.

Day Payroll Time Type Reported Time Calculated Time
1 Regular 4h 4h
2 Regular 8h 8h
3 Regular 12h 8h
Overtime NA 4h
4 thru 5 Regular 8h 8h
6 Regular 3h 3h
7 Regular 3h
Overtime NA 3h

Example 5: The seventh day, both daily, and the weekly overtime rules all run.

Day Payroll Time Type Reported Time Calculated Time
1 thru 3 Regular 4h 4h
4 Regular 13h 8h
Overtime NA 4h
Double Time NA 1h
5 Regular 8h 8h
6 Regular 4h 4h
7 Regular 9h 0h
Overtime NA 8h
Double Time NA 1h

Example 6: The seventh day and weekly overtime rules run, but both daily rules don't.

Day Payroll Time Type Reported Time Calculated Time
1 thru 5 Regular 8h 8h
6 Regular 8h 0h
Overtime NA 8h
7 Regular 4h 0h
Overtime NA 4h

Example 7: The seventh day, daily double time, and weekly overtime rules run, but the daily overtime rule doesn't.

Day Payroll Time Type Reported Time Calculated Time
1 thru 5 Regular 8h 8h
6 Regular 12h 0h
Overtime NA 8h
Double Time NA 4h
7 Regular 13h 0h
Overtime NA 8h
Double Time NA 5h

Example 8: The seventh day rule runs, but both daily rules and the weekly overtime rule don't.

Day Payroll Time Type Reported Time Calculated Time
1 thru 6 Regular 4h 4h
7 Regular 4h 0h
Overtime NA 4h

Example 9: The seventh day and daily double time rules don't run, but the daily and weekly overtime rules do.

Day Payroll Time Type Reported Time Calculated Time
2 thru 6 Regular 10h 8h
Overtime NA 2h
7 Regular 7h 0h
Overtime NA 7h

Example 10: The seventh day and weekly rules run, but both daily rules don't.

Day Payroll Time Type Reported Time Calculated Time
1 Regular 2h 2h
2 thru 5 Regular 8h 8h
6 Regular 8h 6h
Overtime NA 2h
7 Regular 5h 0h
Overtime NA 5h