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Accounting, Payroll & Pension Issues/bi-monthly payroll
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Question
how do you figure overtime when payroll is done bi-monthly
To be honest with you I have never heard of a bi-monthly payroll. I don't know which state you are in, but most of the states have laws that say the employee must be paid at least monthly.
If you were figuring overtime on a bi monthly payroll you would still figure it on a 40 hour a week basis. Anything over 40 hours is overtime and must be paid as such per the Federal FLSA Act. So you just have to keep track of the hours per week for each employee. You cannot average the time over a month or over two months. It is on a week. So you have to pay as such. Each week figure out how much time is over 40 hours for each employee and that is your overtime amount.
Shirley
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Answers by Expert:
Shirley McAllister, CPP, PHR
Expertise
I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.
Experience
25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.
Organizations
SHRM, APA, I.O.M.A.
Publications
I.O.M.A. and BNA
Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration.
Boise State University Human Resource Certification
Awards and Honors
APA Hotline Citation of Merit for last 8 years.
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