Supplying overtime hours

Note: Overtime hours are the number of hours worked in excess of the daily or work period maximum defined on the pay plan.

The Supplied Hours method applies the weighted average rate to overtime hours which you enter into the application.

If you choose to supply overtime hours, Payroll calculates overtime in the following steps:

  1. Payroll calculates gross pay for each time record in the work period.

    • For hourly employees, the system multiplies the number of hours on the time record by the pay rate to calculate the work period gross.

    • For salaried employees, the system divides the employee's annual salary by the number of work periods in a year. For example, for 7-day work periods, annual salary is divided by 52 to get the work period gross. This might be different from the calculation of wages for a pay period.

      Note: You define eligible hours and wages on pay summary groups.
  2. Payroll calculates the weighted average rate of pay for the work period by dividing the total eligible wages by the total eligible hours.

    Payroll compares the weighted average rate with the minimum wage. If the weighted average rate is less than the minimum wage, the minimum wage replaces the weighted average rate used in the calculation of overtime.