Overtime and Subsidy Pay Training FEPS Overtime and Subsidy Pay Training

Overtime and Subsidy Pay Overview 1. Overtime Thresholds 2. Overtime Rates 3. Calculating Overtime 4. Calculating Subsidy

Weekly Overtime Threshold Weekly Threshold in the United States For all states in the US, the weekly threshold is at 40 hours per Work Week. International Thresholds Some International Companies use a weekly threshold similar to the US Work week. This threshold also varies by country.

Daily Overtime Thresholds Daily Thresholds What are Daily thresholds ? The number of hours you can work in one day before the employer is required to pay overtime. Who has them Some States in the US and some Non-US Companies How are they calculated Most daily thresholds start at 8 or 12 hours as determined by Local Law Time punches that cross midnight or start within 2 hours of a punch on a previous day are counted towards the previous day total hours.

Daily Overtime Thresholds How do they affect weekly thresholds Daily overtime is not counted towards the weekly threshold, because the hours over the daily threshold have already been paid overtime. Secondary Daily Threshold Some Areas in the US and some of the Non-US sites have a second daily threshold that once exceed move the employee into a higher overtime rate.

Overtime Rates Overtime Paid at 1.5 (Time and a Half) All of the United States and most of our Non-US facilities pay overtime at 1.5 times the employee’s average hourly rate for the week the overtime was earned in. The only exception to this is when a higher premium applies. Overtime Paid at 2.0 (Double Time) Many countries and some areas in the US have laws requiring ACS to pay users double their average hourly rate. Examples include working more than 12 hours in California, or 7th day pay for Mexico.

Calculating Overtime Work Week What is a Work Week US law determines what hours worked are considered to cross the weekly overtime threshold based on the work week. Overtime premium calculation for US companies is done a per work week basis. Non-US facilities also calculate overtime hours based on a work week, but the week may have different starting days depending on the company code.Overtime premium calculation for Non US companies is done on a per pay period basis.

Calculating Average Hourly Rate US Average Hourly Rate calculation are based Employee’s total pay for the week divided by the users time clock hours for the week. This includes all types of pay and bonuses except Insurance Reimbursement and paid leave. Some Non-US facilities calculate the average hourly rate based on the whole pay period rather than just a single work week.

Calculating Piece Rate Employee’s Overtime Premium Overtime Premium Formula [(Total Pay/Total Hours)/X] * Hours of overtime = OT Premium Where X equals: Time and a half, X = 2 Double time, X = 1 Triple Time, X = .5

Calculating Hourly Employee Overtime An hourly employee makes 10 dollars an hour and works 48 hours. 8 hours of that is overtime. The employee's Total Pay is $520. To Figure out how much of the Employee’s pay is overtime premium we would do the following: [(480/48)/2] * 8 = $40. So the user had 480 dollars (48 hours times 10$ per hour) of straight pay and 40 dollars of overtime premium.

Calculating Overtime for Piece Rate Employees A piece rate employee works 48 hours in a week and completes 480 dollars worth of transactions (an average of 10 dollars an hour). We would use the following formula to figure out how much the employee is due in overtime premium. [(480/48)/2] * 8 = $40 in overtime premium. This on top of his 480 in BC transactions means he earned a total of $520.

Subsidy Pay Calculating Subsidy pay Work Week: Subsidy pay is calculated using a work week for US Company codes. So an employee’s rate of pay must average the subsidy rate or greater over the work week or their income will be subsidized. Subsidy pay shows up on the last day of the work week. Calculating the Average Hourly Rate. The average rate for the subsidy calculation uses different earnings codes than the Overtime Calculation.

Earnings codes included in Average pay for Subsidy calculation US* Ghana MEXICO India All Except:‘ BS','BH','DA','DH','HR','HH','CL','S1','S2','O2','H2','B2','D2','I2','P2','MV','MZ','VP','VI','PD','PN','HO','HI','89', '90','S3','S4’ 'BC','B7','SP','Y7', 'BO','B2','B3','P2', 'P3','P4','HO','99','ID','ME', 'TN','WS' All Except: 'BB','BI','CR','TR','PR', 'RE','IS','SS','ST','91', ‘89', '90' , ‘IP’,’ND’, ‘MW’ 'BC','BQ','CB','DB','GO','BO','B4','P4','MW' * CA and CT have specialized calculations

FEPS Tools Hourly Subsidy Reconciliation ABC Overtime Reconciliation This report shows which employees are being subsidized, the average hourly pay rate, the amount of the subsidy, and the new hourly rate. ABC Overtime Reconciliation This report is for Domestic companies and is pulled on a work week basis. The report shows the employee’s average rate, the overtime premium amount and the total pay. OT Situation Report This report is for Domestic Companies and is pulled for the current work week. It returns the overtime status of the employees. This is used to determine when the employee will need to clock out to avoid overtime.