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Calculate overtime hours when Paying Semi-Monthly

  1. #1
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    Calculate overtime hours when Paying Semi-Monthly

    Hello:

    Please refer to attached excel sheet.

    Column B : Date
    Column C : Name of Employee
    Column D : Clock In Time
    Column E : Clock OUT Time
    Column F : Total Hrs worked
    Column G : Day of the week

    Week starts from Sunday and ends on Saturday

    Employees are paid Semi-Monthly ( 1 thru 15th and 16th thru End of month ) which makes 2 paychecks per month.

    To comply with the labor law, i want to make sure that over 40 hours per week is adjusted in ALL employees paycheck as overtime.
    Bare in mind that there will be some overlap hours from previous paycheck which needs to be accounted for.

    I need the best solution to this problem..
    Please refer to sheet 2 where i have manually started working on but confused.

    I have listed Steps of evalauting overtime below:

    Each employer defines the start and stop point for its workweeks as long as it comprises a 168-hour period. For example, a workweek might run from Monday morning to Sunday night at one company while another company has the workweek run from Sunday morning to Saturday night. Federal law does not permit you to average hours worked each week together for the purposes of calculating overtime, so if your company issues paychecks semimonthly, you have to calculate the overtime due each week of the pay period for each worker.

    Step 1

    Divide the payroll period into the workweeks as defined by your company. For example, if the semimonthly pay period begins on a Thursday and ends on a Thursday and your company defines the workweek as going from Monday morning to Sunday night, you have parts of three workweeks included in the pay period.


    Step 2

    Add the hours worked for the entire workweek for the first workweek of the pay period. In this example, even though the pay period started on a Thursday, you would include the hours worked from the prior Monday through the first Sunday to figure the overtime hours. For example, if the employee worked 30 hours the Monday through Wednesday before the pay period began and 20 hours from Thursday through Sunday, the employee would have 10 hours of overtime out of the 20 hours attributed to the current pay period.


    Step 3

    Add the number of hours worked the second workweek in the pay period, and subtract 40 from the result to find the number of overtime hours worked. The second week will always be a full week with semimonthly pay periods. For example, if the employee worked 45 hours, 40 hours would be at regular pay and 5 hours would be at overtime pay.


    Step 4

    Calculate the number of hours worked in the final week or partial week of the semimonthly pay period. If the employee has not yet exceeded 40 hours, do not pay overtime for the current pay period. However, include these hours when figuring the overtime payments for the next pay period. In this example, since the workweek ends on Thursday, if the employee has worked 40 hours so far that week, you would not pay any overtime, but if the employee worked any more hours that Friday through Sunday, those hours would be included as overtime on the next paycheck.


    Step 5

    Add the overtime, if any, from each of the weeks in the semimonthly pay period. In this example, add the 10 hours from the first week to the 5 hours from the second week to get 15 total hours of overtime.


    Let me know if you have any questions.

    Thanks, help is always aprreciated.

    RM
    Attached Files Attached Files
    Last edited by rizmomin; 02-17-2012 at 08:47 AM. Reason: Adding Condition

  2. #2
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    Re: Calculate overtime hours when payring Semi-Monthly

    Hello

    Can someone help with this..

    Thanks

    RM

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    Question Re: Calculate overtime hours when Paying Semi-Monthly

    My husbands company says that on regular work weeks their "regular" hours are 88 and everything else is overtime and on months that has 31 hours the "regular" hours are 96 and everything else is overtime. Is this correct?

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    Re: Calculate overtime hours when Paying Semi-Monthly

    Hi:

    This is not correct.
    Rules per US Dept of Labor:
    For a given week, any hours over 40 is overtime.
    This means that your company needs to set their working week as Sun-Sat, Mon-Sun, etc.
    So basically assume that working week is Mon-Sun.
    Anytime a person works over 40 hours within their defined work week is overtime.

    Please let me know if any questions.

    Thank you

    Riz Momin

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    Re: Calculate overtime hours when Paying Semi-Monthly

    It's quite a tekst.

    Let's take a start and see where we get from here.

    I made an table in which you can determine the weeks your in.

    After that I made an pivot table, to see the hours.

    I know this is not the "end" solution.

    So you could respond how the weeks should be determined.

    See the attached file.
    Attached Files Attached Files
    Notice my main language is not English.

    I appreciate it, if you reply on my solution.

    If you are satisfied with the solution, please mark the question solved.

    You can add reputation by clicking on the star * add reputation.

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    Re: Calculate overtime hours when Paying Semi-Monthly

    I think this is something I can work with. The company us new to organization and I think the office manager is just confused how to apply the extra day on the pay period. I appreciate the spreadsheet; I think I can tweek it to what I need. Question: on the pay period that has an extra day, don't you add the extra time to the next pay period?
    Ex. the 16th through 31st has 16 days that would equal 88 hours. does that mean you get the 8 hours of time as over time or regular? It is so confusing.
    Thank you for all of your help?

  7. #7
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    Re: Calculate overtime hours when Paying Semi-Monthly

    @sokelley44

    i't's always good to tell to whom your responding.

    If it is to me, it seem to me, your breaking in in anotherone's question.

    This is against the forumrules.

    In that case you have to start an question of your own, and refer to this one.

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