Expert: Shirley McAllister, CPP, PHR - 3/29/2010

Question
When paying overtime on the 15th,when a it falls in the middle of the week do I assume that the rest of the week is at OT and pay that as overtime as well. For example.  The 15th fail on a monday.  I paid that on the 15th, but did not pay OT because the week was not finished.  Now that the 30th is here I will pick up that 1 hour of OT, but because I paid that monday, their week is coming up as 39 hours.  The monday that was paid would have made them have 5 hours OT that week.  How do I pay that week?

Answer
Overtime is figured on 40 hours a week. So you have to add hours worked in on Monday to the hours each hourly employee works for the rest of the week. Figure out how much is over 40 and then subtract the monday hours and the overtime hours to get the regular hours for the week. I really hated doing semi monthly payroll with hourly employees, bi weekly is so much easier.

So you have 9 hours worked on Monday. You paid 8 hours on the 15th.

Now you have 36 hours for Tues-Friday of the week.

36+9 is 45 hours.

45 total worked
minus 5 overtime equals 40 hours
minus 8 hours paid on the 15th equals 32 regular hours

So you have to pay this week in question
32 regular hours and 5 overtime hours for a total of 37 total hours for this week. Now you need to add the hours for the rest of the payperiod.

Shirley