Marci Becker

Sandy McElhinney

Financial Management Services

04/23/08 CATS Presentation

Calculating Overtime according to PeopleSoft and FLSA – Fair Labor Standards Act

Over 40 Hours Report - TIMEMultiple Jobs/Rates – Weighted AverageBonus PaymentsOvertime Only jobsPaying Retro OvertimeProfessional Staff – Overtime EligibleOnline Calculator

TIME will automatically convert hours over 40 to OVT or CPE, depending on the department’s setup

Hours recalculate as they are entered on timesheet Over 40 report/process will be obsolete when all

BW & HR employees are on TIME

Employee has 2 jobs with different rates Job 0 - $8.00/hour Job 1 - $10.00/hour

Employee worked the following hours Job 0 - 24 hours Job 1 - 28 hours

Step 1 – Calculate the Regular Pay they will receive Job 0: 24 hours * $8.00 = $192.00 Job 1: 16 hours * $10.00 = $160.00 Total Regular Pay = $352.00

Step 2 – Calculate the first 1.0 of OVT time Job 1: 12 hours * $10.00 = $120.00

Step 3 – Calculate the FLSA Rate to be used for additional 0.5 of OVT time Total Amount: $352.00 (reg) + $120.00 (ovt) = $472.00 Total Hours: 24 + 16 + 12 = 52 hours FLSA Rate = Total Amount / Total Hours FLSA Rate = $472.00 / 52 = $9.076923

Step 4 – Calculate additional .5 amount Overtime Hours * 0.5 * FLSA Rate 12 hours * 0.5 * $9.076923 = $54.46

Step 5 – Combine all types of pay Regular Pay = $352.00 First 1.0 of OVT = $120.00 Remaining .5 of OVT = $54.46 Total Pay for Period = $526.46

Certain types of bonus pay will inflate the FLSA rate used to pay the additional .5 of OVT SBY – Standby INP – Incentive Payment AWD – Award OC1 – On Call HA1 – Hazard Pay (AFSCME Union)

Hire eDoc comp rate =

regular pay rate for the type of work being

performed

Rate will be * 1.5 during payroll

calculation

Job Comp Rate = $20.00

Rate calculated on paycheck =

$30.00

Retroactive Rate Adjustments – enter the regular and overtime retro codes with the difference in the regular rate. Payroll calculation will increase rate.

Employees track work hours by month Overtime rate will inflate if employee received any

bonus-type pay during the earnings period the overtime was worked

Overtime hours worked are submitted on adjustment vouchers and paid in the following month

Coming Soonto the

FMS Website

Payroll > Payroll Procedures >

FLSA Overtime Calculation

http://www.fms.iu.edu/payroll/procedures.asp