The DOL requires OT rate = 1.50% of the average straight-time rate. Sage doesn't calculate this and doesn't offer a simple way to do it manually either.
We are forced to send hours to excel, manually calculate, and then bring back to Sage, update pay rates manually and then proceed with creating time cards.
Most employers don't even know they are out of compliance when they have multiple pay rates in a work week. Avoid labor audits, and have the program at least provide the average straight-time rate so users can determine if they need to pay a higher OT rate.
by: Kathy R. | over a year ago | Payroll
Comments
I have found if you sort by pay type and highlight the payrate on the regular time it will give you the average then multiply by 1.5% to get the weighted average OT rate. I agree though there should be an option to turn on weighted average OT in the payroll system so reduce errors in manual calculations and entries. I was wondering about how it would appear though on certified payroll reports because the weighted average rate might be less than prevailing wage OT rate.