GAP 101.55, Gross Pay Computations | Accounting

Procedure:
GAP 101.55, Gross Pay Computations

Effective Date:
December 2004

Review/Revision History:
February 2005

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 Period
Primary Position	Hours	Amount
Hours worked both weeks x hr rate	xx.x	$xxx.xx
Shift Premium - hours both weeks x 7%/12% x hr rate		xx.xx
Weekend Premiums - hours both weeks x 20% x hr rate		xx.xx
Supplements:
Standby - both weeks		xx.xx
Working Out of Position - both weeks	xx.xx
Other (required to be included by FLSA) - both weeks	xx.xx

Secondary Positions
First Secondary Job: Hours worked both weeks x hr. rate	xx.x	xx.xx
Second Secondary Job: Hours worked both weeks x hr. rate	xx.x	xx.xx
etc. (same for other secondary jobs)	xx.x	xx.xx

Total Amount		$xxx.xx (e)
Total Hours Worked	xx.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 Week		2nd Week
	Hours	Amount	Hours	Amount
Primary Position
Hours worked - hours x hr rate	xx.x	$ xxx.xx	xx.x	$ xxx.xx
Shift Premium - hours x 7%/12% x hr rate		$ xx.xx		$ xx.xx
Weekend Premium - hours x 20% x hr rate		$ xx.xx		$ xx.xx
Standby Pay		$ xx.xx		$ xx.xx
Working out of Position Pay		$ xx.xx		$ xx.xx
Other Supplements (required to be included by FLSA)		$ xx.xx		$ xx.xx

Secondary Positions
First Secondary Job:
Hours worked - hours x hr rate	xx.x	$ xx.xx	xx.x	$ xx.xx
Second Secondary Job:
Hours worked - hours x hr rate	xx.x	$ xx.xx	xx.x	$ xx.xx
etc. (same for other secondary jobs)	____	_______	____	_______

Total Amount		(a) $ xxx.xx		(c) $ xxx.xx
Total Hours Worked	(b) xx.x		(d) xx.x

Weighted 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 Position		Employees (O.T. options 1&3)	Employees (O.T. option 2)
All hours worked x hr rate		$xxx.xx	$xxx.xx
Vacation/sick/holiday/funeral/election/jury duty leave hours x hr rate		xx.xx	xx.xx
Shift Premium: hours x 7% or 12% x hr rate		xx.xx	xx.xx
Weekend Premium: hours x 20% x hr rate		xx.xx	xx.xx
Holiday Premium: hours x 50% x hr rate		xx.xx	xx.xx
ECB Premium-Unworked: hours x 150% x hr rate		xx.xx	xx.xx
ECB Premium-Worked: hours x 50% x hr rate		xx.xx	xx.xx
Standby/Special: hours x hr rate		xx.xx	xx.xx
Supplements:	Standby Pay	xx.xx	xx.xx
	Working Out of Position	xx.xx	xx.xx
	Other	xx.xx	xx.xx
Gross Pay Adjustments		xx.xx	xx.xx

Secondary Positions
Secondary Job 1: All hours worked x hr rate		xx.xx	xx.xx
Secondary Job 2: All hours worked x hr rate		xx.xx	xx.xx
Etc. (same for other secondaries)		xx.xx	xx.xx
Requisition for Payment of Personal Services?		xx.xx	xx.xx

Overtime Premiums

Overtime 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.xx
2nd wk O.T. hours x 50% x adj. rate (h)	xx.xx
Overtime Code 2 - O.T. hours x 50% x adj. rate (j)		xx.xx

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