Payroll and Attendance Systems Calculate Overtime Holiday Pay and More
Payroll and attendance systems are in high-demand for businesses. The new statuses from the FLSA changes coming in December make is imperative that attendance and payroll be reported accurately.
For example, it used to be common practice to adjust employee’s time clock data to reflect when they were scheduled to work versus when they clocked in. This was done to prevent time clock scams.
With the new FLSA requirements, you will need the exact time via time stamp as well as the adjusted time. This is put into place to keep employers from scamming employees out of hours by shaving off a bit here and there.
Here are questions asked by employees:
- Weighted overtime
- Time and a half
- Paid holidays
- Pay for Sabbaticals
- Errors in Payroll
Overtime is a subject that often gets contested state by state. It is the amount of extra pay per hour that is awarded. It is typically time and a half.
There are a lot of misconceptions about what is and is not overtime. In fact, in the previous article, there were questions about the 40-hour work week.
What is Weighted Overtime?
Weighted overtime is more accurately weighted average overtime. This is used for people who are paid by salary with different week to week hours (like hospital and emergency preparedness staff). Also, people who hold more than one title (waitress/rolling silverware).
During a two week period pay cycle, you calculate total number of hours worked. Any hours over 80 should be calculated at time and a half. Time and a half is can be referred to as the premium overtime rate.
In order to find the amount that is due, you take the overtime hours and multiply those by the premium overtime rate.
Now, add this number to the calculation for the regular pay rate.
From this total, subtract all necessary taxes, entitlement payments, insurance, etc.
It is very very very important that if your company uses weighted average overtime, that the employee is aware of that (with a signature).
Time and a Half
As discussed above, time and a half is the most common premium overtime rate.
What does Time and a Half mean?
This question is one of the most common questions for payroll. To be clear, what time and a half means is the hourly rate plus 1/2 the hourly rate.
For example, if the hourly rate is $10. 1/2 that hourly rate is $5. $10 plus $5 is $15 dollars. The pay rate for time and a half in this case is $15 per hour.
Time and a half is usually for overtime and holiday pay hours.
The holidays are times set aside by the American Government as days that you can spend time with your family. These are traditional days off. If you choose to work on specific holidays, you are rewarded with extra pay for not being able to spend the holiday with your family.
What Holiday pay are Casual Workers Entitled to?
The most commonly observed holidays are:
- New Year’s Day (Jan 1st)
- Martin Luther King Jr. Day
- Memorial Day
- Independence Day (July 4th)
- Labor Day
- Thanksgiving Day
- Christmas Day
For most states, these holidays are paid time and a half. Depending on the state and worker’s contract, a holiday that falls on a weekend might fall under double time and a half.
This information should be in your employee handbook under the section regarding payroll and attendance systems and guidelines.
Personal Growth Pay
Personal growth pay is a growing trend as a perk for companies. This is time that the company or institution pays you to take classes that will benefit the company of institution.
The most commonly known personal growth pay is called a sabbatical. This is different than a vacation because it is work-related.
When is Sabbatical Pay Awarded?
According to nyu.edu, sabbatical pay is awarded following 12 semesters of service. Only tenured faculty are eligible to apply for a one semester of sabbatical leave at full pay or 3/4 pay for an academic year. Faculty members may choose to apply for a one semester of sabbatical after 6 semesters of service; the pay is 3/4.
Sabbatical pay is not a requirement, and it is a perk. It is important for companies to explore the benefits of paying for sabbatical pay for their workers. The workers can come back with skills that will be helpful to the company while giving the employee the feeling of having a vacation.
It is tough when there are mistakes on payroll. A single error can affect people up and down the chain of command.
What is a Payroll Error?
A payroll error is a mistake that is made from the misuse of a time clock by an employee to a missed calculation by someone in the administrative support services office.
It is a good thing that Time Clock Wizard, the best online time clock app, makes fixing common payroll errors very easy.
Payroll and Attendance Systems Conclusion
As you can see from the article above, making sure that the employee is paid at the correct rate for each of their hours worked is of huge importance. It is better to overpay a worker than to underpay them. The most efficient system would be paying the correct amount on time – every time.
Time Clock Wizard is a software solution that can be accessed online that helps managers fix scheduling, payroll and timecard issues in the same location on a dashboard. This makes the efficiency of payroll and attendance management skyrocket.
You can try Time Clock Wizard for free for a limited time by clicking on this link: free TCW trial.