To streamline overtime pay calculations, Empeon Workforce automatically calculates overtime within the payroll batch. The overtime calculation consists of two components: Overtime Conversion and Weighted Overtime, which can be used independently or together depending on the need.
Empeon's Overtime Conversion calculation automatically converts regular work-coded hours to overtime hours when an employee's check in the payroll batch reflects more than 40 regular hours worked. For details on Empeon's solution that applies an average premium overtime rate for employees with varying pay rates within a work week, refer to Empeon's article Weighted Overtime. If you determine that you need Workforce to convert regular worked hours to overtime for your employees, submit the Customer Services Request Form to begin the setup process.
Overtime Conversion Calculation
Overtime refers to any hours worked beyond the standard 40-hour work week. These extra hours are typically compensated at a higher pay rate of time and a half (Hourly Rate x 1.5). Organizations often have multiple Earning Codes that represent worked hours, which should also count toward overtime. Empeon's solution ensures that all applicable Earning Codes are accounted for, allowing the system to recognize when an OT conversion is necessary.
Based on the image above, a Payroll Administrator has entered 44 Regular worked hours and 2 hours of Training. Since Training is considered a worked hour that counts toward overtime, it will be factored into the total hours for OT calculation. Since the OT Conversion Calculation was configured to include Training, the system recognized that 6 hours needed to be applied as overtime and automatically converted the earnings to OT.
Administrating OT Conversion
All Earning Codes representing a worked hour have to be identified for the OT Conversion utility to properly function. This identification need is handled via Workforce's Code Groups. For any circumstance where a unique Earning Code representing a worked hour is added, edit the Code Group associated with the OT Conversion solution and add in the new earning per the image below. If you are not sure which Code Group is used for this need, contact Empeon Client Services to help verify.
