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Administrator Guide
Last Updated: 2024-03-08
Concept: Flat Sum Bonus with FLSA Company Relationship (USA)

Concept: Flat Sum Bonus with FLSA Company Relationship (USA)

You can calculate Flat Sum Bonus overtime premium rate for workers with multiple jobs across different companies. When you
Create FLSA Relationship
Workday:
  • Applies it to all Flat Sum Bonus overtime calculations for eligible employees.
  • Uses all regular hours worked based on coverage dates across 2 or more companies within the FLSA company relationship.
Example: Sam has 2 jobs and each job has a unique company. You:
  • Create an FLSA relationship for both companies (Company A and Company B).
  • Assign a worker to a 7-day FLSA week calendar with a weekly payroll period.
At Job A (Company A), Sam works 8 hours regular and 1 hour overtime. At Job B (Company B), they work 32 hours regular and 1 hour of overtime. A Flat sum bonus of $100 is paid for each job. Since the companies are in an FLSA relationship, Workday calculates the Flat Sum Bonus overtime premium rate using the total regular hours worked for both companies.
Sam receives 2 gross-to-net payslips, 1 for each company.
  • Workday processes Job A first. Since Job B hasn't been processed yet, Workday calculates Flat Sum Bonus Overtime rate only for Job A Flat Sum Bonus and overtime hours.
    Job/Company
    Description
    Dates
    Hours
    Rate
    Amount
    YTD
    Job A (Company A)
    Hourly
    2023-05-01 to 2023-05-07
    8
    $25
    $200
    $200
    Flat Sum Bonus
    2023-05-01 to 2023-05-07
    $100
    $100
    Job A (Company A)
    Overtime Straight Time
    2023-05-01 to 2023-05-07
    1
    $12.50
    $12.50
    $12.50
    Job A (Company A)
    Flat Sum Bonus Overtime Premium
    2023-05-01 to 2023-05-07
    $3.75
    $3.75
    $3.75
  • Calculations for Gross-to-net 1 for Job A (Company A)
    :
    Flat Sum Bonus Eligible Hours:
    • Company A and Company B total regular hours = 40
    • Company A and Company B total overtime hours = 2
    Overtime Premium Rate: Flat sum bonus amount /Number of regular hours in the pay period) x 1.5 
    ($100 / 40) * 1.50 = $3.75 that will be applied to Overtime hours for Job A (Company A)
Workday processes Job B next, and calculates the Flat Sum Bonus Overtime rate to include hours for both Job A and Job B. Job A (Company A) and Job B (Company B) are in an FLSA relationship therefore there's a blended rate that's calculated in the second Gross-to-net:
Job/Company
Description
Dates
Hours
Rate
Amount
YTD
Job B (Company B)
Hourly
2023-05-01 to 2023-05-07
32
$20
$640
$640
Flat Sum Bonus
2023-05-01 to 2023-05-07
$100
$100
Job B (Company B)
Overtime Straight Time
2023-05-01 to 2023-05-07
1
$20
$20
$20
Job B (Company B)
Overtime Premium
2023-05-01 to 2023-05-07
1
$10.54
$10.54
$10.54
Flat Sum Bonus Premium
2023-05-01 to 2023-05-07
$7.50
$7.50
$7.50
Job A (Company A)
Overtime Premium
2023-05-01 to 2023-05-07
$10.54
$10.54
$1.79
Job A (Company A)
Flat Sum Bonus Overtime Premium
2023-05-01 to 2023-05-07
$3.75
$3.75
$1.79
Job A (Company A)
Overtime Premium
2023-05-01 to 2023-05-07
-$12.50
-$12.50
$1.79
  • Calculations for Gross-to-net 2 for Job B (Company B):
    FLSA Eligible Wages and Hours:
    • Job A (Company A): 8 regular hours (1x) @ $25.00 per hour = $200.00
    • Job A (Company A): 1 overtime hour (1x) @ $25.00 per hour = $25.00
    • Job B (Company B): 32 regular hours (1x) @ $20.00 per hour = $640.00
    • Job B (Company B): 1 overtime hour (1x) @ $20.00 per hour = $20.00
    FLSA Overtime Calculation:
    • FLSA rate = $885.00 (total wages from both companies) divided by 42 (total hours from both companies) = $21.071
    • FLSA Premium Rate = $21.071 * 0.5 = $10.535
    Total Overtime due to the Worker:
    • Job A company A:  Premium adjustment only -  $10.54 (new FLSA Premium rate) – $12.50 (premium rate from GTN1) = -$1.96 (negative)
    • Job B company B:  $20.00 (1x) + $10.54 (Premium) = $30.54
    Flat Sum Bonus Eligible Hours
    • Company A and Company B total regular hours = 40
    • Company A and Company B total overtime hours = 2
    Overtime Premium Rate: Both Flat sum bonus amount /Number of regular hours in the pay period) x 1.5
    • ($200 / 40) * 1.50 = $7.50 that will be applied to Job B (Company B)
    • $7.50-$3.75 (Flat sum bonus rate from GTN1) = $3.75 difference that will be applied to Job A (Company A)