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Dynamics 365 Community / Blogs / Dynamics GP Support and Services Blog / How does your overtime rate...

How does your overtime rate blend?

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Terry R Heley Profile Picture Terry R Heley Microsoft Employee

With Overtime Rate Manager (ORM) in Microsoft Dynamics GP, which is free for all customers and part of Payroll Extensions or the Human Resource Payroll Suite install, gives customers the ability to calculate a blended overtime rate to pay their employees with.  This meets requirements for FLSA, Fair Labor Standards.
Many times in support we get questions on how to set this up.  Below I have provided you some basic examples of a setup and also the calculation we use to back into these figures.
I did examples with overtime, double overtime, bonus pay added in and also an example with a shift differential and OT.  These are just examples, and guidelines for you to go off of as you start to use this product, the system is more rules based in this area and your setup may fluctuate based off your install / need.

It is very important when working with overtime rate manager that you know the rate that was keyed into the payroll transaction, as you can see when you review the document screen shots, once you get to the calculate checks report it shows the BLENDED rate, not the actual rate that is keyed into the system and that seems to confuse a lot of users.

ORM Manual and Example setup

Get your pencil, paper and calculators out and thinking cap on, let's have some fun with ORM!

Thanks

Terry Heley, who needs more caffeine!
Microsoft

Comments

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  • ImAPilot Profile Picture ImAPilot 70
    Posted at

    Hi Terry.  This is definitely in the category of the "makes my head hurt" example, but is it possible to configure this to handle the California overtime laws?

    From www.dir.ca.gov/.../faq_overtime.htm

    The employee is compensated for the overtime at not less than:

    1. One and one-half times the employee's regular rate of pay for all hours worked in excess of eight hours up to and including 12 hours in any workday, and for the first eight hours worked on the seventh consecutive day of work in a workweek; and

    2. Double the employee's regular rate of pay for all hours worked in excess of 12 hours in any workday and for all hours worked in excess of eight on the seventh consecutive day of work in a workweek.

  • dsknoebl Profile Picture dsknoebl 4
    Posted at

    Terry, how does this work for a bi-weekly pay cycle? Do you have to process the weeks separately in order to get the correct blended rate per week?

  • Pam Robertson Profile Picture Pam Robertson 4
    Posted at

    Terry, how does this work with the "Calculate minimum wage" feature?  Does it calculate the minimum wage first, and include the minimum wage pay in the blended overtime calculation, or does it calculate the blended overtime, then make sure minimum wage was received?

  • Lyn Barr Profile Picture Lyn Barr 1
    Posted at

    A.) I'm always up for more caffeine!

    B.) Thanks for this explanation, it's really helpful!

    C.) Now, if only you can get me to understand the whole "activate post-dated pay rates" thing. It's such a simple concept, but I can't ever seem to get it to work as I expect.

    Have a great day!