Premiums and Overtime

General support regarding TimeTrex, such as
configuring policies/taxes or processing payroll.
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bellarose
Posts: 22
Joined: Tue Apr 30, 2013 7:12 am

Premiums and Overtime

Post by bellarose »

Hello;

I've been through a couple of forms and can't seem to figure this out.

I am attempting to set up a different hourly wage for employees for when they work in the 'management' department (which is not their default department).

At the moment I have a premium set up but I can't seem to find a way to replace the default hourly wage for their default department with the hourly wage when they are working in the management department. That is, when employees are working in the management department the only way that this seems to be possible is that they earn their default department wage plus a certain amount (the management premium). Ideally I would like to isolate the default wage from the management department wage.

With the wage + premium model it also appears that overtime is not being calculated correctly. That is, overtime is only being calculated based on the base wage and not the base wage with the premium included. I tried putting in a second overtime policy for a specific wage group that I set up but the new overtime policy takes over instead of supplements the other.

I am not sure if I am being clear enough or not so here is an example of what I would like to be able to accomplish.

Normal Department Wage 10.00
Management Department Wage 12.00

If the employee works over 48 hours in total no matter which department they are working for they are then paid 1.5 higher.

Normal Department Wage 15.00
Management Department Wage 18.00

So on the paystub there would be two regular time rates and two over time rates.

Any insights would be greatly appreciated!

Thanks;

-Ryan
shaunw
Posts: 7839
Joined: Tue Sep 19, 2006 2:22 pm

Re: Premiums and Overtime

Post by shaunw »

You should be able to achieve this in a few different ways:

Method 1: Ignore "Regular Time" completely and use only Premium Policies, this way you can use actual hourly wages, though it may be a little more complicated.
Method 2: Use "Regular Time" and "Premium Time", where "Regular Time" wage is $10/hr and Premium wage is +$2/hr.

Each method has its advantages and disadvantages, but the basic idea to handle overtime rates with premium policies is to create multiple premium policies, for example:

Premium Policy: Regular Time - Management
Type: Advanced
Active Before: 48hrs Weekly
Active After: 0hrs Weekly
Pay Type: Pay+Premium
Premium: $2/hr

Premium Policy: Weekly OT - Management
Type: Advanced
Active Before: 0hrs Weekly
Active After: 48hrs Weekly
Pay Type: Pay+Premium
Premium: $3/hr ($2 * 1.5)

The above assumes you are still using Regular Time and Overtime Policies, then two different premium policies can apply at two different rates depending on if the employee has worked over 48hrs in the week or not. So the overtime policy calculates 1.5x on their regular wage ($10/hr), and premium policy calculates 1.5x on just the premium portion of that ($2/hr).

Given the below example:

Worked: 48hrs Regular Time
Overtime: 2hrs
The last 5hrs of that was in Management department (3hrs regular, 2hrs overtime)

There pay stub would show:

Regular Time: 48hrs @ $10/hr
Premium 1 (Management): 3hrs @ $2/hr

Overtime 1: 2hrs @ $15/hr
Premium 2 (Management OT): 2hrs @ $3/hrs
------------------------------------
Total Gross: $522

Compared to what you are specified in your post what you want to see:

Regular Time: 45hrs @ $10/hr
Regular Time (Management): 3hrs @ $12/hr
Overtime (Management): 2hrs @ $18/hr
------------------------------------
Total Gross: $522

As you can see the end result is the same, its just a different way to get to it. If you need more flexibility for hourly rates (ie: Employee A gets $12/hr for management vs. Employee B getting $12.50/hr, you can use Secondary Wage Groups).
bellarose
Posts: 22
Joined: Tue Apr 30, 2013 7:12 am

Re: Premiums and Overtime

Post by bellarose »

Thank you Shaunw !
bellarose
Posts: 22
Joined: Tue Apr 30, 2013 7:12 am

Re: Premiums and Overtime

Post by bellarose »

Sorry to bother you again. Will ether of these methods automatically work into holiday pay calculations?
shaunw
Posts: 7839
Joined: Tue Sep 19, 2006 2:22 pm

Re: Premiums and Overtime

Post by shaunw »

Can you be more specific?
bellarose
Posts: 22
Joined: Tue Apr 30, 2013 7:12 am

Re: Premiums and Overtime

Post by bellarose »

Actually, never mind. Looking at the legislation for Nova Scotia holiday pay is paid at the base rate.
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