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What is the best way to set up Salary Non-Exempt employees with FLSA overtime calculations? I only have the SL Payroll module.
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Hi Becky,
I could see your setting up 2 extra earnings IDs. OT would have a rate multiplier of 1.5. Your 0.5 rate overtime would have a rate of 0.5 in Earnings Type maintenance.
Anything you enter into the Time and Dollar screen for a salary employee will be added to his regular salary as long as there is an earnings amt in the transaction line.. So you would need to enter 20 hours of OT-0.5 and 10 hours of OT-1.5. But the issue comes with the calculation of the hourly rate.
You can give an hourly rate to a salary employee and it will default when you enter time in Time and Dollar. And, you can overwrite that rate at the time you enter your overtime. But there is no way to get that rate calculated within the system.
There would be a fixed weekly amount to be paid as salary based on a specified number of hours/week. Any time worked over 40 hours would be paid as overtime but there is an overtime premium calculation and the number of hours that the salary is based on determines what multiplier you use with the OT premium.
Say we agree to pay $1000.00/wk based on a 60 hour week and our employee actually works 70 hours.
We would divide the weekly salary amount by the total number of hours actually worked ($1000.00/70) to get the OT premium rate (in this case $14.29). Since our salary was based on 60 hours, we have already paid the straight time for 60 hours, and now we need to pay the extra half time for the OT up to 60 hours (20 hrs * $14.29 * .5 = $142.86). Then we have to pay OT at 1.5 for anything over 60 (10 hrs * $14.29 * 1.5 = $214.35). So this employee receives:
Salary - $1000.00
OT @ half time- $142.86
OT @ time & a half - $214.35
Total Gross - $1357.21
I hope this helps clarify.
Hi Becky,
Can you further define your setup needs.
I assume that if the person works more than the usual hours , they get overtime. But I am not sure how the FLSA overtime calculation works. Tell me more about that.
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