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Overtime and bonuses - this just blew my mind - any thoughts on how to make this more automatic?

  • 1.  Overtime and bonuses - this just blew my mind - any thoughts on how to make this more automatic?

    Posted 08-03-2021 12:42
    A client just came to me regarding the Fair Labor Standards Act and bonuses/overtime.

    Apparently if you pay "non-discretionary" bonuses this impacts the rate at which you compensate for overtime.

    Example:  Your employee gets paid $20/hour.  On a monthly basis they receive a bonus based on productivity /efficiency/etc.  

    The employee is paid for 168 hours x $20 = $3,360 + 5 hours of overtime..   The bonus is  $500.

    Therefore the employee is paid for 173 hours x $20 + $500 = $3,860.  The effective pay rate is then $3,860 /173 = $22,31.

    The overtime premium is  50% of $22,31 or $11,16/hr.  So the employee is do an extra $11.16 x 5 hours = $55.80.

    Any idea how to automatically handle this Sage 100 payroll.

    This seems crazy but it seems to be accurate.

    Overtime_on_Bonuses_Revised.pdf (ymaws.com)

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    Thomas Rogers (TomTarget)
    Target System Technology, Inc.
    Spokane Valley WA
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  • 2.  RE: Overtime and bonuses - this just blew my mind - any thoughts on how to make this more automatic?

    Posted 08-16-2021 11:19
    Crickets - Interesting....

    If you ere running Sage HRMS PR,  this might be the solution. 

    Non-Discretionary Bonus Overtime Calculator for Sage HRMS & Sage 300 (delphiaconsulting.com)

    Was looking at Delphia's Garnishment Manager software when I noticed it.

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    Jeff Schwenk
    FORMER 90M Board Member -140,000,000 is a TERRIBLE thing to waste!!!
    Bottomline Software, Inc.
    Waynesboro VA
    540-221-4444
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