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Note that Overtime methods are only available to non MAIS users.
To illustrate the two methods for handling overtime assume that 1 hour of overtime is to be paid and that the employees rate of pay is $20.00 per hour. Also, the employee has worked 35 hours in the period.
Absolute method:
The employee will be paid:
Regular time:
700.00 (35 * 20.00)
Overtime:
30.00
(1 * 20 * 1.5)
Total
730.00
In this case the overtime is represented as an absolute cost. The regular time will be reported using EBD 101 and the overtime will typically use EBD 102.
Premium Method:
The employee will be paid:
Regular time:
720.00 (36 * 20.00)
Overtime:
10.00
(Overtime paid as a premium)
Total:
730.00
In this case the overtime is represented as a premium cost. The regular time will be reported using EBD 101 and the overtime premium EBD will be defined by the user (see below).
Use these steps to setup the overtime premium method EBD and calculation factors. Step 1 need only be done once. Step 2 need only be done once per payroll company.
1. Create an EBD general switch called OTPrem.
2. Ensure that the Payroll Setting for the overtime calculation is set to Premium.
3. Create the overtime and double time premium EBD's. These EBD's will be used to record the premium costs. The Rate Multiplier should be set to .5 for overtime and 1.0 for double time. In our example we have created EBD 112 for overtime premium and 113 for double time premium.
4. Link EBD 102 (overtime) and 103 (double time) to the newly created premium EBD's via the EBD general switch. Ensure that the Premium applies switch is clicked on:
5. Post time using the Time Worked program from the menu.
Last Updated October 20, 2006