Overtime Policies define how overtime is calculated for workweeks.
Security Level Required: Payroll Administrator
Using the left pane Main Menu, click on: Administration » Payrolls and Reports » Overtime Policies.
Overtime Policies define how overtime is calculated for workweeks. These policies stand alone and do not, by themselves, determine how overtime is calculated for any one employee. Instead, you must link Overtime Policies to Workweek Groups.
NOTE: If you have upgraded your TimeIPS system from v1.4 or an older version, your payroll settings have been converted into Workweek Groups and Overtime Policies. You may also have Overtime Policies named after individual employees. These employees had payroll settings that were converted into a unique Overtime Policy for that employee.
Add a New Overtime Policy
- Type the new overtime policy name into the Name field and click on the Add Overtime Policy button.
- The new overtime policy will be created and added to the list of Existing Overtime Policies.
Edit Existing Overtime Policies
Net Pay Calculations
As of TimeIPS v1.5, TimeIPS Overtime/Doubletime Net Pay Calculations are based on the following documentation taken from: http://www.dol.gov/dol/allcfr/ESA/Title_29/Part_548/29CFR548.2.htm
(e) The basic rate so established is authorized by Sec. 548.3 or is
authorized by the Administrator under Sec. 548.4 as being substantially
equivalent to the average hourly earnings of the employee, exclusive of
overtime premiums, in the particular work over a representative period
(f) Overtime hours are compensated at a rate of not less than one
and one-half times such established basic rate;
(g) The hours for which the employee is paid not less than one and
one-half times such established basic rate qualify as overtime hours
under section 7(e) (5), (6), or (7) of the Act;
(h) The number of hours for which the employee is paid not less than
one and one-half times such established basic rate equals or exceeds the
number of hours worked by him in any workweek in excess of the maximum
workweek applicable to such employees under subsection 7(a) of the Act;
(i) The employee's average hourly earnings for the workweek
exclusive of payments described in paragraphs (1) through (7) of section
7(e) of the Act are not less than the minimum hourly rate required by
this Act or other applicable law;
(j) Extra overtime compensation is properly computed and paid on
other forms of additional pay which have not been considered in arriving
at the basic rate but which are required to be included in computing the
[20 FR 5679, Aug. 6, 1955, as amended at 26 FR 7731, Aug. 18, 1961]
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