California Flat-Sum Bonuses

Flat-sum bonuses earned in California require special overtime calculation. The payroll process:

• Uses a premium calculation method based on the employee's regular hours worked instead of total hours worked during the period to which the bonus applies.

• Calculates an additional premium on the bonus for each overtime hour the person worked during the pay period.

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 (LDG).

   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. Select Alternate bonus calculation method as the premium 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.

3. Add element entries for your flat sum bonus and overtime premium elements.

   When you do this, the Element Entries task automatically creates an additional indirect element for calculating premium overtime for the bonus. This element isn't user editable.