Calculate Hourly Employee Overtime Rates

 

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Expand/Collapse item  Overview

 

To calculate hourly employee overtime

  1. Select Payroll Setup menu > Earnings Code Maintenance.

  2. In the Earnings Code field, enter a code to be used for overtime. For more information, see Earnings Code Maintenance - Fields.

  3. In the Earnings Type field, select Overtime.

  4. In the Pay Rate Multiplier field, type 1.500 to calculate overtime at a rate of time and a half, or type 2.00 to calculate overtime as double time.

  5. Enter information in the remaining fields in the window.

  6. Click Accept and exit Earnings Code Maintenance.

  7. Select Payroll Main menu > Employee Maintenance.

  8. On the Pay Defaults tab, enter the employee’s standard hourly rate in the Pay Rate field. For more information, see Employee Maintenance - Fields.

  9. Enter other information as needed.

  10. Click Accept and exit Employee Maintenance.

The amount entered in the Pay Rate field is multiplied by the entry in the Pay Rate Multiplier field when the overtime earnings code is used in Payroll Data Entry.

 

Expand or collapse item  Examples - Hourly Employees

 

Expand or collapse item  Example - Exempt Salaried Employees

 

Expand or collapse item  Example - Nonexempt Salaried Employees