The Employee's overtime rate is calculated based on a few factors:
- Overtime Multiplier
- If an employee works all shifts in the same position/job code for the week
- If the Employee entered overtime in a 'tipped minimum wage' position/job code.
Multipliers are used to calculate an employee's pay rate when their workweek exceeds the 'Hours Worked' defined in Enterprise Manager.
The actual Overtime Rate depends on whether the shifts worked for the week were all in the same position or the Employee worked multiple positions. When an employee works multiple positions in the same business week, a 'Blended Rate' is used to calculate the overtime rate.
How it's calculated:
- Standard Rate = [POSITION PAY RATE x OT MULTIPLER]
- Blended Rate = ([Position 'A' pay rate x total Position 'A' hours worked] + [Position 'B' pay rate x total Position 'B' hours worked]) / TOTAL HOURS WORKED.
Shifts that enter overtime in a 'tipped minimum wage' position are calculated slightly differently and impact the Blended Value. When calculating overtime for a tipped position included in the blended Rate, a tip credit must be applied to the overtime to adjust the value accordingly. This calculated value must be applied to the overtime hours for the tipped position by multiplying the tip credit by the number of overtime hours worked in that position, then subtracting this value from the OT value.
How it's calculated:
- Tip Credit = Minimum Wage - Tipped Minimum Wage
- = Blended Value OT = (OT hours x OT multiplier x Blended Rate) - (Tip Credit x OT hours)
The final overtime calculations do not occur in the application until payroll has been exported from Enterprise Manager. This ensures that all necessary data is present for the calculations. Once the export is complete, the Employee Time Detail report updates with the 'Blended' overtime data where required.
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