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Payroll Calculation. Navigation Keys: Continue to the next screen Return to the previous screen Start the session over. To quit the session use the ESC key on your keyboard. Overview. The payroll system will automatically determine: if there is overtime

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payroll calculation

Payroll Calculation

Navigation Keys:

Continue to the next screen

Return to the previous screen

Start the session over

To quit the session use the ESC key on your keyboard.

overview
Overview
  • The payroll system will automatically determine:
    • if there is overtime
    • if it should be paid or accrued &
    • if it is at straight time or time and a half

as long as ACT (Actual Hours Worked) is coded.

definitions
Definitions
  • Overtime – Time worked in excess of 40 hours within a work week.
  • Hours worked – Hours actually spent in the performance of the employee’s job.
  • Earned Administrative Leave (EAL) – Hours that exceed the regularly scheduled hours but do not result in overtime.
  • Holiday – A day of exemption from work granted to state employee’s.
considerations
Considerations
  • There are several factors to remember when figuring payroll calculation.
    • What is the employee’s FLSA?
    • Are they set up to be paid or to accrue their time?
    • Are there any overrides?
    • Are the correct earnings codes used?
slide5
FLSA
  • Covered: Overtime is compensated at one and one-half times the hourly rate. Employee can receive time or payment.
  • Exempt: Overtime is compensated hour for hour. Employee can only receive compensatory time off.
  • Non-Covered: Employee is not eligible for overtime and receives no compensation for overtime hours worked.
accruals
Accruals
  • Overtime and EAL Accrual

Indicates if the employee’s overtime hours will be accrued ‘Y’ or not ‘N’.

        • Y = Accrue
        • N = Do not accrue (pay)
  • These can be overridden on time sheets.
step by step process
Step by Step Process
  • There is a worksheet that will walk you through the steps of determining, understanding and explaining what the system will do or has done.
  • In this training session the worksheet will be displayed in sections. There is a link to the actual form below and at the end of the presentation.

Click here if you would like to have a copy of the form as we proceed through this lesson.

prep work
Prep work:
  • At the top of the worksheet write if the employee is covered or exempt and if they are paid or accrue their overtime and eal.

This employee is

covered and accrues

both overtime and

EAL

reported hours
Reported hours
  • Fill in the upper portion of the worksheet to reflect the hours reported on the time sheet.
total hours worked
Total Hours Worked
  • Add the total hours WORKED, don’t forget any time worked on a holiday and don’t include any time that was not physically worked.

+

slide11
Complete the next section one line at a time.
  • When necessary, there is a statement on the worksheet that explains how to determine what the blank should be.
holiday pay
Holiday Pay
  • Enter holiday (HOL) hours only, in the first blank.
holiday hours worked earnings codes
Holiday Hours Worked Earnings Codes
  • HOA Holiday Worked Accrued(1.5) Hours worked on a holiday by an employee with a ‘covered’ FLSA code. These overtime hours will be accrued as compensatory time at 1.5 times the hours the employee worked.
  • HOW Holiday Worked Paid (1.5) Hours worked on a holiday by an employee with a ‘covered’ FLSA code. These overtime hours will be paid at 1.5 times the employee's regular rate of pay.
  • HOP Holiday Worked Paid (1.0) Hours worked on a holiday by an employee with an ’exempt’ FLSA code who has a special ruling given by the Board of Examiners. These overtime hours will be paid at hour for hour the employee's regular rate of pay. Note: A 'MC' change reason (Miscellaneous Update Action) changing an employee's FLSA code to an "S" must be processed for an employee prior to use of this code.
  • HOS Holiday Worked Accrued (1.0) Hours worked on holiday by an employee with an ‘exempt’ FLSA code. These overtime hours will be accrued as compensatory time hour for hour that the employee worked. There is no limit of time that may accrue, but the balance cannot be paid in cash.
  • Do not code these hours as Actual Hours Worked (ACT).
holiday overtime
Holiday Overtime
  • Holiday Overtime is equal to all hours worked on a holiday by either a covered(1.5) or exempt(1.0) employee.
overtime
Overtime
  • Overtime is equal to Total hours workedminus 40.
leave taken
Leave Taken
  • Enter the total hours for any leave that was taken.
regular
Regular
  • Regular is equal to Total hours worked minus all overtime (holiday and regular).
slide18
Switch your thinking from

Hours Worked to Hours Paid

for the remainder of the steps.

slide19
EAL
  • EALEarned Administrative Leave In any week that an employee would be compensated in cash for more than forty (40) hours, EAL can be used when necessary to reduce the compensation to regularly scheduled hours. EAL may be earned by employees with either a ‘covered’ or ‘exempt’ FLSA code. It is always earned at straight time.
calculating eal
Calculating EAL
  • EAL is equal to Total hours Paid minus 40.

In this example the employee is paid for 40 hours, total hours

paid 40 minus 40 – there would be no EAL and the worksheet

would be complete.

slide21
EAL is equal to Total hours Paid minus 40.

to continue the worksheet we will assume the

employee was sick for 8 hours, those hours are

entered on the Leave taken line.

=48

adjust reg
Adjust REG
  • Adjust Regular hours, reduce your Regular hours by the total number of EAL hours.
  • REGULAR – EAL

=

one last step translation
One last step – Translation
  • How it looks on the payroll register

HOL 8

SIC 8

REG 24

HOA 12

OTA 12

EAL 8

The 40 hours the employee

is paid for.

Hours accrued that can be used

at a later time, or paid off upon

termination.

additional links
Additional Links
  • Payroll Calculation Worksheet
  • DSP Helpdesk
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