From here you are able to set & update your preferences for your payroll settings.
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- Work week begins - Dictates the work week and overtime rules applied to the pay period and its frequency. Select the day your work week begins to ensure payroll is calculated correctly.
- Work week overtime override - Sets the parameter for when the system starts calculating overtime for your employees. If your PTO policy states that OT is calculated from 40 hours, enter 40.00 in this field.
- Overtime rule
Breakdown of the Overtime Rules:
With the many ways overtime can be calculated, we have tried as much as possible to constrain our programming to one that adheres as strongly as possible to generally accept overtime rule sets. Below is a quick summary of the different types of rules we accommodate:
- Standard DOL Compliant Rules
- California Override
- Alternate Scheduling (9/80)
- Nevada Override
- FLSA
- Custom Set
Standard DOL Compliant Rules
First and foremost, the rules used for calculating overtime stem from the Fair Labor Standards Act or FLSA Part 778, Chapter 8 of Title 29 of the Code of Federal Regulations to be exact). If your state does not have specific overtime rules then it is most likely your company adheres to the Standard DOL Compliant rules. These rules basically state you must pay time and a half for all hours worked in a workweek that are over 40 hours.
California Class I, Class II and Class III
California overtime calculations can be very difficult to understand. If your organization is found within California, we strongly encourage you speak with a labor attorney in order to understand more fully the requirements under California state law. Our system calculates California overtime based upon the following rules.
Class I:
- Overtime is paid for all hours worked between 8 and 12 hours for any given day. Double time is paid for all hours worked over 12 during any given day.
- Overtime is paid for all hours worked in a workweek that are over 40 hours.
- Overtime is paid for all hours worked on the 7th consecutive day. Double time is paid for all hours worked over 8 on the 7th consecutive day.
Class II:
- Overtime is paid for all hours worked between 8 and 12 hours for any given day. Double time is paid for all hours worked over 12 during any given day.
- Overtime is paid for all hours worked on the 7th consecutive day. Double time is paid for all hours worked over 8 on the 7th consecutive day.
Class III:
- All hours over 8 in a day or 40 in a week or worked on the 7th consecutive day of a work week will be counted as overtime. In addition, hours worked over 12 in a day or hours over 8 worked on the 7th consecutive day in a week are also calculated as Double time.
Alternate Scheduling (9/80)
California state law states any organization has the power to implement overtime rules based upon terms agreed upon by both the employer and its employees. This is referred to as "Alternate Scheduling". Since this rule can vary from company to company, we've made available the most widely used rule set. It states the following:
- All standard California overtime rules apply AND
- If an employee works during a day that is not scheduled, they are paid overtime for the day in question.
Nevada Override
Nevada overtime rules are actually very similar to the Standard DOL compliant rules, which are with one exception. All hours worked over 8 during any given day or considered overtime hours.
FLSA Blended rate with bonus
The overtime rule is only available for bi-weekly and weekly pay periods. User enters bonus information as an expense which will then cause recalculation after the bonus amount is entered. Only worked hours are used to calculate the premium overtime and then the Overtime premium is applied anywhere there is an overtime status.
- Check the appropriate box to apply the following: Include holiday hours to overtime calculation and Include day-off hours to overtime calculation.
- Calculate unfinalized personnel for payroll - You may enable this option if you wish to have a link to view "Unfinalized Personnel" in Payroll.
Caution: If there are many payrolls that are not archived, please disable this option because it takes much longer time in loading Payroll Listing since all payroll status is recalculated.
- Auto finalize unapproved personnel in payroll - Finalizing departments requires that all personnel have their time approved by a manager. In the event that an employee has not been assigned to a manager or there are no personnel pending to be approved, the system can auto-finalize that department for you making it easier to complete the payroll.
- Disable Managers from approving cross Departments Entries - This is a feature when managers approve their own department's time entries. When this feature is checked manager A cannot approve any time entry for any employee in manager b's departments.
- Include Departments in Payroll with no personnel? Check this box, if you wish to include those departments in payroll that have no personnel assigned to them.
Salary Distribution:
- Do not distribute salary - Only display salary values in the primary department
- Distribute salary evenly across departments - Salary is divided by number of departments, then divided by hours worked
- Distribute salary evenly across departments and jobs - Salary is divided by number of departments, then by no. jobs in department
- Distribute salary across total hours worked - Salary is divided by the total hours across all department and job hours
- Pay period frequency - The pay period type field is necessary for using the advanced reporting features.
This allows the system to know when your pay period begins and ends, allowing you to receive reports based upon pay period. This is invaluable when coordinating personnel time worked with a pre-determined time frame.
For payrolls that rotate every 15 or 30 days, please provide what day of the month your payroll typically starts. If your payroll is every two weeks, then at the time you are creating a schedule in the Scheduler, you have the option of specifying whether or not that schedule marks the end of the payroll for the time span specified.
**NOTE**
Due to the nature of there not being an equal number of weeks in a year, there may be a few occasions our indication of your payroll starting and ending does not match with your actual payroll. Until we can determine an appropriate solution to this problem, please be aware of this potential problem.
- Pay Period Last Began - The pay period type field is necessary for using the advanced reporting features.
- Calculate holiday hours worked up to shift end -Calculates all holidays hours worked within the payroll period.
- Calculate all the hours up to shift end -Calculates the hours in total as opposed to splitting the hours.
- Currency: Select the currency type required.
- Payroll Provider: This can only be changed by your payroll provider.
- Activate certified payroll module?
**NOTE**
Your Client number/code and Employer ID is assigned to you by your payroll provider, if you are using one.
- EIN#
An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity. Generally, businesses need an EIN. You may apply for an EIN in various ways, and now you may apply online. This is a free service offered by the Internal Revenue Service. You must check with your state to make sure you need a state number or charter.
A compa-ratio measures the relationship between the salary of an employee or a position, and the midpoint of the pay range for that employee or position.
Pay Grade Settings
Each position has a salary range that includes a minimum, a midpoint, and a maximum. These three values represent industry averages for the position. A Compa-Ratio of 1.00 or 100% means that the employee is paid exactly what the industry average pays and is at the midpoint for the salary range, a ratio of 0.75 means that the employee is paid 25% below the industry average and is at the risk of seeking employment with competitors at a higher pay that is perceived equitable. A ratio of 1.15 compa-ratio would mean the employee is paid above the industry average.
The formula to calculate a compa-ratio is as follows:
Compa-Ratio = the salary divided by the range’s midpoint
Payroll Distribution Settings per Location
Contact Us
If you have any questions, please contact support@hourdoc.com.
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