There are several different rates available for calculating overtime pay. Each of the following scenarios indicate how the Overtime Pay Type will be calculated if it is included on the employees record.
  • Hourly with Percentage of Hourly Gross

    Percentage of hourly gross pay allows you to include pays that are set up as cash benefits in your hourly gross pay calculation for both time

    For example:

    Employee Joe is a salaried employee. He works his normal position of 40 hours at $15 per hour for a total of $600, but also coaches baseball for 8 hours a week at $12 per hour for an additional $96. On this timesheet he filled in for an hourly employee on Saturday and turned in 8 overtime hours as well. Overtime pay is calculated as 150% of hourly gross.

    Joe's pay is calculated as follows:


    Hourly Gross = (Total Pay $600 + $96) / (Total Hours 40 + 8) = $14.50 per hour

    Overtime Rate = $14.50 x 150% = $21.75 per hour

    Total Overtime pay = $21.75 per hour x 8 hours = $174

    Joe's total gross pay = $696 regular pay + $174 overtime = $870

    If you do not want the overtime rate to include the additional coaching pay in the percent of hourly gross, set restrictions on the overtime pay.

  • Salary with an Annual Salary

    The Overtime Pay type is set up with a Rate of Salary & an Annual Salary of $26,000.

       Calculates as:  Overtime = Annual Salary / Number of Pay Periods

    For Example:

    Joe makes $26,000 per year and he's paid every two weeks.

    This is defined in a Regular Pay Type on his record with a Rate of Salary & Annual Salary: $26,000

    There is also an Overtime Pay type on his record set with a Rate of Salary & Salary of $26,0000

    The Overtime would calculate as - Overtime= 26000/26 = $1000. This means that he would make a total of $2000: Regular $1000 + Overtime $1000

  • Fixed Amount with an Amount per period

    The Overtime Pay type is set up with a Rate of Fixed Amount and an Amount per Period of $100.

       Calculates as:  Overtime = Fixed Amount

    For Example:
    Joe works 1 hour of overtime for a week, he gets an extra $100 per week.

    Joe works 5 hours of overtime the next week, he gets an extra $100 per week.

    This Overtime Pay Type adds a $100 to each calculation it is included on, regardless of the number of hours of overtime the employee works.

  • Percentage of Gross with a defined percent

    The Overtime Pay type is set up with a Rate of Percentage of Gross and a defined percent of 150.00%

       Calculates as:  Overtime = Regular Pay * Percent

    For Example:
    Joe's Gross Pay for the period is $500. A percentage of gross by percent overtime pay type is on his record. The calculation created will include an overtime amount of $750 in additional to the $500 regular pay.

  • Hourly with an Amount per Hour

    The Overtime Pay type is set up with a Rate of Hourly and an Amount per Hour of $12.50.

    Calculates as: Overtime = Number of hours of overtime * Amount per hour

    For Example:
    Joe works 6 hours of overtime with a overtime rate of 12.50. His Overtime would equal 6 x 12.50 for a total overtime of $75.00