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Administrator Guide
Last Updated: 2023-06-23
Example: Create FLSA Premium Rate Earning (USA)

Example: Create FLSA Premium Rate Earning (USA)

This example illustrates 1 way to create an FLSA premium rate earning that you can use with an FLSA regular rate earning to calculate FLSA wages.
Terry needs to set up an FLSA premium rate earning for overtime hours. She wants the rate to display on the workers' payslips.
Security: These domains in the Core Payroll functional area:
  • Set Up: Payroll (Calculations - Payroll Specific)
  • Set Up: Payroll (Calculations - Generic)
  1. Access the
    Create Related Calculation
     task.
  2. Enter these settings:
    Option Description
    Name
    FLSA Rate
    Code
    FLSA_RATE
    Category
    Payroll
  3. Select
    FLSA Rate by Company and FLSA Period (returns 0 if FLSA Hours by Company and FLSA Period = 0)
     from the
    Default Value
     prompt on the
    Value
     tab.
  4. Click
    OK
    .
  5. Click
    Done
    .
  6. Access the
    Create Arithmetic Calculation
     task.
  7. Enter these settings:
    Option Description
    Name
    OT Premium Rate Calculation
    Category
    Payroll
    1st Operand
    FLSA Rate
    Operator
    Multiply
    2nd Operand
    0.5
  8. Click
    OK
    .
  9. Click
    Done
    .
  10. Access the
    Create Related Calculation
     task.
  11. Enter these settings:
    Option Description
    Name
    Premium Rate (1/2 of FLSA Rate)
    Code
    OT_RATE
    Category
    Payroll
  12. Select
    OT Premium Rate Calculation
     from the
    Default Value
     prompt on the
    Value
     tab.
  13. Click
    OK
    .
  14. Click
    Done
    .
  15. Access the
    Create Arithmetic Calculation
     task.
  16. Enter these settings:
    Option Description
    Name
    Hours (unprorated) * Premium Rate (1/2 of FLSA Rate)
    Category
    Payroll
    1st Operand
    Hours (unprorated)
    Operator
    Multiply
    2nd Operand
    Premium Rate (1/2 of FLSA Rate)
  17. Click
    OK
    .
  18. Click
    Done
    .
  19. Access the
    Create Earning
     task.
  20. Enter these values:
    Option Description
    Name
    FLSA Premium Rate
    Code
    FLSA_PREM
  21. Select a future
    Effective Date
     on the
    Effective Dated
     tab.
  22. Add a row on the
    Worker Eligibility
     grid and select
    Payroll Input Exists for Pay Component (Sub Period)
    .
  23. Enter these settings in the
    Calculation Details
     section:
    Option Description
    Calculation
    Hours (unprorated) * Premium Rate (1/2 of FLSA Rate)
    Input Amount Allowed?
    Select
    Override Frequency
    Hourly
    Resolve by FLSA Period
    Select
  24. Enter these settings in a row on the
    Related Calculations
     grid:
    Related Calculation
    FLSA Premium Calculation Type
    Override Calculation
    Input Allowed?
    Do Not Store / Do Not Store if Zero
    Hours (unprorated)
    FLSA Premium Hours
    Payroll Input
    Select
    None of the above
  25. Enter these settings in a row on the
    Related Calculations
     grid:
    Related Calculation
    Override Calculation
    FLSA Rate
    FLSA Rate by Company and FLSA Period (returns 0 if FLSA Hours by Company and FLSA Period = 0)
  26. Enter these settings in a row on the
    Related Calculations
     grid:
    Related Calculation
    FLSA Premium Calculation Type
    Override Calculation
    Do Not Store / Do Not Store if Zero
    Premium Rate (1/2 of FLSA Rate)
    FLSA Premium Rate
    OT Premium Rate Calculation
    None of the above
  27. Click
    OK
    .
  28. Click
    Done
    .
  29. Select the
    Hours (unprorated)
     calculation on the
    Edit Related Calculation
     task.
  30. Select the
    Bring Forward Difference
     on the
    Retro Adjustment Type
     tab.
  31. Click
    OK
    .
  32. Click
    Done
    .
Workday:
  • Prorates FLSA salaried and exception hourly earnings that come from compensation.
  • Processes retro pay.
Set up payroll input for a pay component, such as hourly pay.