(Subject to state differences)... At it sounds like you figured out, the way it's supposed to work is that you specify whichever day of the week is the start of the week and then it's supposed to calculate OT based on 7 day periods, each starting on that start day, regardless of when the pay cycle ends. I.E. if your payroll in a monthly or bimonthly case is decoupled from the calculation of overtime. But, many software providers don't seem to understand this for some reason.
FWIW, I like doing Saturday->Friday weeks, that way if an employee ends up working over the weekend, they can take mid-week off if they desire without an impact to their PTO balance. The real challenge I have with not being on a biweekly schedule is how to deal with employee time off. We have a policy that you can't take time off that results in more than 40 hours in a week. If your pay period ends on a Monday, and an employee has no hours on Monday and takes vacation time, and then works 4 10's on Tue-Fri, then you've ended up paying the employee for 48 hours that week. But if you don't let the employee take Monday off with PTO, and they don't work the rest of the week, then you've shorted them 8 hours. I recently ended up switching payroll providers (now using OnPay). One of the main things that I was evaluating was whether they would do the employee match correctly for our retirement plan. It's amazing how many companies can't set their software up to properly do a "match their contribution up to 3% of their wages". A lot seem to think that just being able to enter a fixed dollar amount of the employer contribution for each employee is acceptable. This is a problem when the employee is putting more than 3% in their retirement and their wages change from pay period to pay period. In fairness, a lot of the providers do deep integration with various 401k providers and we're using a SIMPLE IRA instead (until the end of the year), so it's slightly unusual, but not all that unusual. On Thu, Jul 22, 2021 at 2:45 PM Chuck McCown via AF <af@af.afmug.com> wrote: > 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 > -- - Forrest
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