Example: Create FLSA Bonus That Allocates Across a Coverage Period (USA)
This example illustrates 1 way to create an FLSA bonus earning that allocates across a coverage
period.
Terry needs to set up an FLSA bonus earning that allocates across the period in which
the employee earned it. She wants to pay the bonus earning in the first pay period
in July but apply it to January through June. She needs to include the allocated
bonus amount in the FLSA wages, which impacts the premium rates for the pay periods
in those months.
When creating an FLSA bonus
earning, you must directly reference the amount entered in the pay input or
one-time payment. You can't use a related calculation or a pay-component related
calculation.
Security:
Set Up: Payroll (Calculations - Payroll Specific)
domain in the Core
Payroll functional area.- Access theCreate Earningtask.
- Enter these values:
Option Description NameFLSA BonusCodeFLSA_BON - Enter these settings on theEffective Datedtab:
Option Description Effective DateSelect a future effective date.CalculationPayroll InputInput Amount Allowed?SelectOverride FrequencyHourlyResolve by FLSA PeriodSelectAllow Coverage Dates for BonusesSelectTo allocate the bonus across a coverage period, select the check box for theCoverage Datesfields to display on theAdd Payroll Input by Workertask.FLSA Amount Allocation Across Coverage DatesPaid on Active Periods – Full AmountThe allocation method you select depends on whether you want to calculate and pay the bonus in nonactive periods. - SelectFLSA Wages [USA]from theGroupsprompt on theNon-Effective Datedtab.Select other pay component groups as needed.
- ClickOK.
- ClickDone.
Workday:
- Adjusts the FLSA regular rate on each FLSA work period impacted by the bonus.
- Recalculates premium pay (half-time overtime premium).
- Pays the difference.
Workday displays FLSA adjustments for each active FLSA work period to which the bonus applies
on the payroll results and on payslips. The payslips display FLSA adjustments in the
Earnings
section.