Introduction
Empeon Workforce has a solution to help organizations easily calculate overtime pay needs automatically in their payroll batch. Empeon's overtime calculation has two parts which can be used separately or in unison depending on the need, Overtime Conversion and Weighted Overtime.
This article explains the Overtime Conversion part of Empeon's overtime pay calculations. This solution converts regular work coded hours to overtime hours when more than 40 worked regular hours is applied on an employee's check in the payroll batch. For information about Empeon's solution that applies an average premium overtime rate for employees with varying pay rates within a work week, review Empeon's Weighted Overtime article.
If you determine that you need Workforce to convert regular worked hours to overtime for your employees, submit the Custom Services Request Form to begin the setup process.
Overtime Conversion Calculation
Overtime refers to any hours worked beyond the standard 40-hour work week. These extra hours are typically compensated at a higher pay rate of time and a half (Hourly Rate x 1.5). Organizations often have multiple earning codes that represent hours worked. Empeon's Overtime Conversion solution can apply the conversion for all earning codes that represent a worked hour.
Per the image above, forty-four Reg worked hours and two hours of Training have been keyed in by a payroll administrator. "Training" is considered a worked hour that counts towards overtime. Per the actual check calculation results at the bottom half of the Pay Entry record, the OT Conversion utility recognized that six hours needed to be applied as overtime and automatically converted the earnings to OT.
Administrating OT Conversion
All earning codes representing a worked hour have to be identified for the OT Conversion utility to properly function. This identification need is handled via Workforce's Code Groups. For any circumstance where a unique earning code representing a worked hour is added, edit the Code Group associated with the OT Conversion solution and add in the new earning per the image below. If you are not sure which Code Group is used for this need, contact Empeon Client Services to help verify.