In this scenario we will assume that the Pay Week for Overtime Calculations is Sunday and the OT Method is set to 1. These are set up in PAY: Defaults. OT Method 1 calculates any hours worked over 40 in a pay week will be paid at time and 1/2 for all employees. We will look at a payroll for 04/16/08 through 04/30/08.
An hourly employee has the following hours for this pay period:
1st week
Wed April 16 – 15.34 hours
Thur April 17 – 7.82 hours
Fri April 18 – 11.54 hours
Sat April 19 – 0 hours
Total Hours – 34.70
2nd Week
Sun April 20 – 0 hours
Mon April 21 – 11.75 hours
Tue April 22 – 7.74 hours
Wed April 23 – 11.60 hours
Thur April 24 – 7.45 hours
Fri April 25 - 11.92 hours
Sat April 26 – 0 hours
Total hours – 50.46
3rd Week
Sun April 27 – 0 hours
Mon April 28 – 11.74 hours
Tues April 29 – 7.65 hours
Wed April 30 – 11.35 hours
Total Hours - 30.74
Total hours 115.90
In order to calculate the OT for the 1st week we need to look at the entire pay week.
Sun April 13 – 0 hours
Mon April 14 – 8.25 hours
Tues April 15 – 7.50
Total Hours – 15.75
1st week
15.75 (hours from the previous pay period) + 34.70 current pay period = 50.45 total hours
50.45 total hours minus 40.00 reg hours = 10.45 Overtime hours
2nd week
50.46 total hours minus 40.00 reg hours = 10.46 Overtime hours
3rd week
30.74 total hours (will be paid at straight time, these hours will be used to calculate OT for next payroll)
Total OT hours paid 20.91