Special Payroll Calculations

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Presentation transcript:

Special Payroll Calculations Pamela Fagan Shull

Bonuses That Affect Overtime Rate of Pay Nondiscretionary Promise made to individual employee based on individual personal performance (on-call pay, attendance bonus, commissions, etc.) Discretionary No promise made – random Other employees are involved

Example of Nondiscretionary Bonus Calculation Janice worked 45 hours last week. She received an on-call pay of $50 for her on- call time for Saturday. Janice makes $8.00 per hour. $8.00 x 45 = $360 + $50 = $410.00 $410.00 ÷ 45 = $9.11 $9.11 x .5 x 5 = $22.78 $410.00 + $22.78 = $432.78

Guaranteed Hours Paid, But Not Worked Employee worked a 40 hour week at $9.50 per hour. Employee asked to come in on day off and work for a couple hours. Employee guaranteed 4 hours pay 2 hours were physically worked on day off 40 x $9.50 = $380.00 4 x $9.50 = $ 38.00 $380 + $38 = $418.00 $418 ÷ 42 = $ 9.95 $9.95 x .5 x 2 = $ 9.95 $418 + $9.95 = $427.95

Weighted Average Overtime Calculations 25 hrs. @ $8.00 = $200.00 20 hrs. @ $8.50 = 170.00 45 $370.00 $370  45 = $8.22 $8.22 x .5 x 5 = $20.55 $370 + 20.55 = $390.55

Overtime Pay For Piecework Employee works at home and is paid $1.00 for each sweatshirt screen painted. Last week employee painted 500 sweatshirts and worked 50 hours. $1 x 500 = $500 $500 ÷ 50 = $ 10 $10 x .5 x 10 = $ 50 $500 + $50 = $550

Retail/Service Commission Hourly rate plus commissions is one and one-half times the federal minimum wage ($7.25 x 1.5 = $10.875) More than half of their pay comes from commissions

Tipped Credit FLSA min. hr. wage = $7.25 Max. tip credit = $5.12 Some states have a lower tip credit $7.25 - $5.12 = $2.13 cash wages

Tipped Credit cont. Tip credit (46 hours x $5.12) = $235.52 Cash wages (46 hours x $2.13) = $97.98 Total straight compensation = $333.50 Overtime pay (1/2 x $7.25 x 6 hrs.) = $21.75 Total compensation = $355.25

Inside Sales – Salary + Commission Their regular rate of pay on a weekly basis (hourly rate plus commissions) is at least one and one-half times the federal minimum wage in effect ($10.875); and More than half of their pay for a representative period (at least one month) comes from commissions.

How To Calculate 1st $300 $250 $550 45 $12.22 2nd $350 $650 48 $13.54 Week Salary Commission Total Hours Reg. Rate 1st $300 $250 $550 45 $12.22 2nd $350 $650 48 $13.54 3rd $330 $630 55 $12.00 4th $285 $585 42 $13.93 $1200 $1215 $2415