## GAP 101.55, Gross Pay Computations

## I. GENERAL

Gross pay for biweekly-paid employees is computed according to the University's policies and the Fair Labor Standards Act (FLSA). If overtime hours are involved, gross pay involves two calculations:

## II. ADJUSTED RATE CALCULATION

Normally when an employee works overtime hours, those hours are paid at one and one-half times the employee's regular hourly rate of pay. However, certain premiums and supplemental pay earned in a pay period will affect the rate at which the overtime premium is paid, and a special weighted average adjusted rate must be calculated.

**Adjusted Rate Calculation for the 14-day Pay Period**

Use the following adjusted rate calculation for employees who earn overtime for hours worked over 8 in a day or 80 in a 14-day workweek:

14 Day Pay PeriodPrimary Position Hours AmountHours workedboth weeks x hr rate

xx.x $xxx.xxShift Premium- hours both weeks x 7%/12% x hr rate xx.xxWeekend Premiums- hours both weeks x 20% x hr rate xx.xxSupplements:Standby- both weeks xx.xxWorking Out of Position- both weeks xx.xxOther(required to be included by FLSA) - both weeks xx.xxSecondary PositionsFirst Secondary Job:Hours worked both weeks x hr. rate xx.x xx.xxSecond Secondary Job:Hours worked both weeks x hr. rate xx.x xx.xxetc.(same for other secondary jobs) xx.x xx.xxTotal Amount$xxx.xx (e)Total Hours Workedxx.x (f)Weighted Average Adjusted Rate-14 day period: Total Amount (e)

Total Hours Worked (f) = $ x.xxx (j)

**Adjusted Rate Calculation for Each Week**

Use the following adjusted rate calculation for employees whose overtime hours are determined by hours worked over 8 in a day/40 in a week, or hours worked over 40 in a week.

1st Week2nd Week Hours Amount Hours AmountPrimary PositionHours worked- hours x hr rate xx.x $ xxx.xx xx.x $ xxx.xxShift Premium- hours x 7%/12% x hr rate $ xx.xx $ xx.xxWeekend Premium- hours x 20% x hr rate $ xx.xx $ xx.xxStandby Pay $ xx.xx $ xx.xxWorking out of Position Pay $ xx.xx $ xx.xxOther Supplements

(required to be included by FLSA) $ xx.xx $ xx.xxSecondary PositionsFirst Secondary Job: Hours worked- hours x hr rate xx.x $ xx.xx xx.x $ xx.xxSecond Secondary Job: Hours worked- hours x hr rate

xx.x $ xx.xx xx.x $ xx.xxetc. (same for other secondary jobs) ____ _______ ____ _______Total Amount (a)$ xxx.xx (c)$ xxx.xxTotal Hours Worked (b)xx.x (d)xx.xWeighted Average Adjusted Rates: 1st week: Total Amount (a)

Total Hours Worked (b) = $ x.xxx (g)2nd week: Total Amount (c)

Total Hours Worked (d)= $ x.xxx (h)

## III. CALCULATION OF GROSS PAY

The calculation of gross pay for an employee is the summation of all types of pay earned for the pay period. The calculation is the same for all employees except for calculating the adjusted rate for overtime premium to pay as described in section II above.

The gross pay calculations for employees whose overtime hours are determined for a 7-day workweek (overtime codes 1 and 3) and employees whose overtime hours are determined for a 14-day workweek (overtime code 2) are outlined on the following page.

**Gross Pay Calculation for the Pay Period**

Primary PositionEmployees

(O.T. options 1&3)Employees

(O.T. option 2)All hours worked x hr rate $xxx.xx $xxx.xxVacation/sick/holiday/funeral/election/jury duty

leave hours x hr rate xx.xx xx.xxShift Premium: hours x 7% or 12% x hr rate xx.xx xx.xxWeekend Premium: hours x 20% x hr rate xx.xx xx.xxHoliday Premium: hours x 50% x hr rate xx.xx xx.xxECB Premium-Unworked: hours x 150% x hr rate xx.xx xx.xxECB Premium-Worked: hours x 50% x hr rate xx.xx xx.xxStandby/Special: hours x hr rate xx.xx xx.xxSupplements: Standby Pay xx.xx xx.xxWorking Out of Position xx.xx xx.xxOther xx.xx xx.xxGross Pay Adjustments xx.xx xx.xxSecondary PositionsSecondary Job 1: All hours worked x hr rate xx.xx xx.xxSecondary Job 2: All hours worked x hr rate xx.xx xx.xxEtc. (same for other secondaries) xx.xx xx.xxRequisition for Payment of Personal Services? xx.xx xx.xx

Overtime PremiumsOvertime hours were paid above at one times the hourly rate. Overtime premium is paid at one-half times the adjusted rate for each overtime hour. The alphabetical reference used below refers to the adjusted rate calculated in Section II.

Primary Position:Overtimes Codes 1 and 3 1st wk O.T. hours x 50% x adj. rate (g) xx.xx2nd wk O.T. hours x 50% x adj. rate (h) xx.xxOvertime Code 2 - O.T. hours x 50% x adj. rate (j) xx.xxSecondary Position:(Repeat for each secondary job)Overtime Codes 1 and 3 -- 1st wk O.T. hours x 50% x adj. rate (g) xx.xx2nd wk O.T. hours x 50% x adj. rate (h) xx.xxOvertime Code 2 - O.T. hours x 50% x adj. rate (j) xx.xxTotal - Gross Pay $xxx.xx $xxx.xx