For years I have had a semi monthly payroll. 14-16 days in a pay period consisting of 7 or 8 day work weeks. I discovered today that the software would take a pay period that started on a Friday, and presume anything over 40 was OT. Normally that means it would hit 40 at the end of Thursday and then count all day Friday as OT.
Nobody ever pointed out that we gave them extra OT. But we recently went to a different time sheet system and shorted some folks on OT and oh boy did they point that out. Started studying the problem of OT calculation in semi monthly payroll situations. Not trivial. You can “choose” which 7 days you want to consider when the period is over 8 days. And the way you choose could allow you to game the system against the employee. But you have to choose it so you don’t pay too much OT as in the above example. I am so surprised the automated systems of T sheets and Mint didn’t catch this. So, we are now going to a bi weekly payroll. Ahhh.
-- AF mailing list AF@af.afmug.com http://af.afmug.com/mailman/listinfo/af_af.afmug.com
