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.

   Note:

   You can use supplemental augmented earnings elements to calculate these bonuses. If you use this option, set the following on the base augment and premium adjustment elements:

   1. Set California as the state.

   2. Select Alternate bonus calculation method as the premium calculation method

   For further info, see How Do I Define Supplemental Augmented Earnings.

2. Define regular and premium overtime elements.

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.