Presentation on theme: "Special Session for Human Resources, Time & Leave, and Payroll Administrators Date: June 27, 2012 Time: 3:00 – 5:00 p.m. Location: Room B102, Eastern High."— Presentation transcript:
Special Session for Human Resources, Time & Leave, and Payroll Administrators Date: June 27, 2012 Time: 3:00 – 5:00 p.m. Location: Room B102, Eastern High School
Todays Agenda Entering time in the E210 system The new HX Code and the new E210 Overtime Report Review and answer questions on key concepts presented in recent FastFacts on: – Hours Worked & Time Off Plans – March 28, 2012 – Understanding and Calculating Regular Rate – April 24, 2012 – Tracking Time in E210 & Processing Overtime in SAP – May 10, 2012 – Overtime Pay – Real-Life Scenarios & Special Issues - June 7, 2012
Timekeeping Requirements A complete and accurate record of employees work and leave time is essential and required by: – Wage & hour and employment laws – Federal requirement regarding charging cost of vacation leave taken by employees paid from sponsored funds Non-exempt employees must record their actual hours worked weekly. Supervisors of non-exempt employees must review their non-exempt employees completed timesheets weekly & submit OT payment no later than the next pay period.
E210 System Official university time record – Records time worked (including time off plan) – Documents leave accrual and use (paid or unpaid) – Automates deduction of leave needed to supplement short- term disability benefit, if applicable Maintained by the Financial Systems Administrative Department of the Controllers Office For policy questions regarding leave administration, consult your Divisional HR office.
Entering Time in E210 Problems with time entries Incomplete and inaccurate time records Late submission, review, and approval of E210 Incorrectly recording time off used in lieu of pay Leave or the combination of leave and time worked exceed the number of hours normally scheduled on that day.
Entering Time in E210 Problems with time entries Confusion over the use of AH, XO, C codes Lack of/missing explanation for time in the Comments section Submitting time way in advance
Entering Time in E210 Things to remember: E210 must reflect hours worked on the actual day they were worked. E210 must be completed weekly by non-exempt employees. Supervisor must review non-exempt employee E210 for OT weekly. Supervisor approve time entries monthly.
Entering Time in E210 Things to remember: Round start and stop time to the nearest quarter hour – 15 minutes increments are entered into E210 as: 0.25, 0.5, 0.75 May not round standard hours (e.g., 5.6 hours per day for working a 28 hour work week).
Entering Time in E210 Things to remember: When using time-off plan, record additional hours as X or HX and record time-off in lieu of pay taken using C code. Example: Note: Time off in lieu of pay must occur within same pay period. - In excess of standard workweek but less than 40 hours: 1 hour worked equals 1 hour time off - In excess of 40 hours: 1 hour worked equals 1.5 hour time off
Entering Time in E210 Things to remember: Leave time and leave time + hours worked – cannot be greater than scheduled work hours in a day When an Alternative Holiday (AH) is used, be sure to remove the original H code on the university recognized holiday. IF an employee works on a university recognized holiday, use HX code for hours worked.
Introducing…Effective July 1, 2012 The new HX code in E210 (use for working on a holiday) The new E210 Overtime Report
E210 System HX Code HX code -To be used for working on a holiday beginning July 1, 2012 -Needed for the new E210 Overtime Report -Resubmit E210 if time has been submitted in advance for hours worked on or after July 1, 2012
E210 Overtime Report What is it? … a tool designed to help supervisors and timekeepers determine who worked overtime and the number of overtime hours worked by non-bargaining, non-exempt employees who enter leave and work time in E210 …always uses the current information of the employee with the exception of scheduled hours
E210 Overtime Report Available to supervisors and timekeepers to run by themselves within E210 starting on July 1, 2012 for E210 entries from July 1, 2011 forward
E210 Overtime Report Why is it important to run the report? – Calculating overtime hours manually can be involved, complicated and prone to errors – Incorrect calculations Incorrect payments Non-compliance with law & JHU policy – Automates overtime calculation as required by law and JHU policy
E210 Overtime Report What information does the report provide? Identifies who worked overtime in a specific time period Identifies number of overtime hours worked to be paid at standard rate vs. premium rate Identifies leave excluded from overtime calculation Identifies hours worked on a holiday to be paid at premium rate and excluded from FLSA premium overtime calculation Identifies due date for Bonus/Supplemental ISR to ensure timely OT pay processing and compliance with JHU policy and legal requirements (http://ssc.jhmi.edu/hr_payroll/deadlines.html) (http://ssc.jhmi.edu/hr_payroll/deadlines.html
E210 Overtime Report Key Features Department selection – For example, U4321, U43, or U Date range for overtime reporting – E210 entries from July 1, 2011 Sort capability by: – Department – Employee last name – Personnel number (pernr) – ISR processing date
E210 Overtime Report Key Features Easy access to view E210 time entries by clicking on an employees pernr Flags employees who had a change in hours or FLSA category during a month – Signals need to review E210 Overtime Report calculations closely – May need to be manually re-calculated Note: The header in the non-exempt employees E210 record will now display the number of holiday hours the employee is eligible.
E210 Overtime Report How to run the E210 Overtime Report? Step 1: In an employees E210, click on Go to Reports.
E210 Overtime Report How to run the E210 Overtime Report? Step 2: In the Report Selection screen, choose Staff Report in the Select Report Type section. Then choose OT Report in the Select the Report section. Finally, choose Let me select the dept/div in Use Default Dept/Div section. Then click Continue.
E210 Overtime Report How to run the E210 Overtime Report? Step 3: Enter Department(s) or Division(s) and Date Range desired. Then, click Get Report.
Columns 1-4 General information Columns 5-7 E210 submission information Columns 8-10 Scheduled Hours; Hours Recorded; Hours Worked Column 11 Hours excluded from FLSA calculation Column 12 HX Hours Columns 13-16 Information for submitting bonus/supple- mental ISR 10 11 12 13 14 15 16 6 7 8 9 3 4 5 2 1 Click one to sort
E210 Overtime Report Column Definitions – Department – legacy department code – Month Submitted Date – date last submitted – Form Status – status of E210 record, i.e., S = submitted only, A = submitted and approved, L = locked down – Week Ending – last day of the workweek when overtime hours were worked – Scheduled Total Hours – employees standard total weekly hours (not work schedule rule) when E210 for the month was submitted
E210 Overtime Report Column Definitions – Total Hours Recorded – all hours entered including non-worked hours, e.g., vacation, sick, holiday, personal day, time off in lieu of pay – Total Hours Worked – all hours worked coded as X, HX, XO – Leave & (HX) Hours Exempt from FLSA Premium Overtime – non-worked hours, e.g., vacation, sick, all time not coded as X, XO – Holiday Hours Worked (HX Code) – hours worked on a university designated holiday. Paid or to be taken as leave at 1.5 times of actual number of hours worked. – Standard OT (WT 2084) – overtime hours paid at employees standard/base rate. Use wage type 2084.
E210 Overtime Report Column Definitions – Premium OT Non-Holiday Worked (WT205A) – number of overtime hours worked over 40 hours in the workweek paid at 1.5 times of employees standard/base rate. Use wage type 205A. If other FLSA earnings are also paid during the same workweek, then use regular rate. Use wage type 205M. – Premium OT Holiday Worked (WT205A) – hours worked on a holiday paid at 1.5 times of employees standard/base rate. Use wage type 205A or take as leave at 1.5 times for all actual hours worked. – Process ISR By – HR/Payroll Shared Services website cutoff dates for Bonus/Supplemental ISR
E210 Overtime Report Example 1: 40 hour standard workweek, 8 hours/day, 8:30 – 5:00 p.m., Monday – Friday – Worked on 5 hours on July 4th, which is a university holiday. – Also worked 1.5 additional hours each day from Tuesday to Friday E210 time entries show: The E210 Overtime Report shows:
E210 Overtime Report Determining Standard & Premium Overtime Hours: – Total Hours Recorded = 46 hours – Total Hours Worked = 43 hours (excludes 3 hrs holiday leave on Monday) – Leave & (HX) Hours Exempt from FLSA Premium OT = 8 (includes 3 hrs holiday leave + 5 holiday hrs worked) – Total Standard OT = 6 hours – Total Premium OT (Holiday) = 5 hours Holiday Hours Worked: Employee is paid his/her normal pay plus one-and-one half times his/her regular rate for all hours worked on a university holiday or receives equivalent time- off at a future date at a rate of one-and-one half times. No Pyramiding: Premium pay paid for working on a holiday is excluded from the calculation of overtime for the week.
E210 Overtime Report Taking time-off in lieu of pay for all hours worked – Holiday Hours Worked: Since the employee worked 5 hours on July 4 th, she may take 7.5 hours time-off in lieu of pay (5 hours x 1.5 = 7.5 hours) – Additional Overtime Hours Worked: For the additional 6 hours the employee worked for the rest of the week, she may take 6 hours time-off in lieu of pay (6 hours x 1 = 6 hours) – Time-off in lieu of pay = 13.5 hours (7.5 hours + 6 hours) Remember to enter an explanation in the Comment section of the E210.
E210 Overtime Report Example 2: 37.5 hour standard workweek, 7.5 hours/day, 8:30 – 5:00 p.m., Monday – Friday – Works additional hours on every day this week except Friday – On Friday, he took 3.75 hours of vacation E210 time entries show: Overtime Report shows:
E210 Overtime Report Determining Standard & Premium Overtime Hours: – Total Hours Recorded = 47 hours – Total Hours Worked = 43.25 hours (excludes 3.75 hrs vacation leave on Friday) – Leave & (HX) Hours Exempt from FLSA Premium OT = 3.75 (includes 3.75 hrs vacation leave) – Total Standard OT = 6.25 hours – Total Premium OT = 3.25 hours Any time not worked (e.g., vacation, holiday) must be excluded.
E210 Overtime Report Important To Note! Usefulness of the report depends on: – Integrity and accuracy of your employees position data in SAP and E210 – Correct usage of time and leave codes – Accuracy and completeness of time recorded – Timeliness of recording time worked and leave used
E210 Overtime Report Important To Note! E210 Overtime Report calculations may not be accurate when an employees: – Scheduled hours change during the month – FLSA status changes during the month – E210 is submitted in advance – Position information in SAP is inaccurate Require close review! May need to manually re-calculate hours
E210 Overtime Report Important To Note! E210 Overtime Report calculations may not be accurate when an employee: – Works additional hours one week and takes time off in lieu of pay the following week (Time Off Plan) Require close review! May need to manually re-calculate hours
E210 Overtime Report Important To Note! Works as a required attendance personnel when the university or office is closed (use X code). E210 Overtime Report calculations may not be accurate for dates prior to July 1, 2012. Require close review! May need to manually re-calculate hours
E210 Overtime Report Important To Note! Negative number in the Standard OT, WT2084 column signals one of three things: – Employee begins or ends in the middle of the week – Time missing or entered incorrectly in E210; corrections in E210 are required – ISR may need to be submitted to reduce pay
E210 Overtime Report Important To Note! When the Alternative Holiday (AH) code is used, the original H code for a university recognized holiday must be removed
E210 Overtime Report Whom may I call if I need help in understanding my departments Overtime Report? – Contact your Human Resources Divisional Leave Administrator.
Review and Q&A Key Concepts from FastFacts 1.Hours Worked & Time Off Plans – March 28, 2012 2.Understanding and Calculating Regular Rate – April 24, 2012 3.Tracking Time in E210 & Processing Overtime in SAP – May 10, 2012 4.Overtime Pay – Real-Life Scenarios & Special Issues - June 7, 2012 ) To see all past FastFacts events, go to: http://www.hopkinsfastfacts.org/http://www.hopkinsfastfacts.org/
Review – FastFacts Key Concepts Hours Worked & Time Off Plans – Required to pay non-exempt employees for all time worked With or without supervisor approval Regardless of departmental budget constraints – Generally include: wait time, on-call time, meal & rest periods, sleep time, travel time, lectures, meetings, training, pre/post activities – May only grant time off in lieu of pay for overtime hours worked during the same pay period (Time Off Plan) – Any time not worked (e.g., vacation, holiday) must be excluded from calculating overtime
Review – FastFacts Key Concepts Regular Rate – Key concept – Rate used to calculate premium overtime pay. Premium OT pay is 1.5 times regular rate for hours worked in excess of 40 in a workweek. – Not always equal to an employees standard/base hourly rate Regular Rate = total earnings (minus exclusions) total number of hours worked Exclusions (Examples)Inclusions (Examples) Discretionary bonus, pay for vacation and sick day, gifts, holiday premium pay Hourly wages, shift differential pay, on-call pay, non- discretionary bonus
Review – FastFacts Key Concepts Submit bonus/supplemental ISR to pay additional hours To pay additional hours workedUseWhat to enter in Bonus/Supplemental ISR Up to 40 hours per week @ standard/ base hourly rate Wage Type 2084 (Standard Overtime) Enter # of hours up to 40 hours in the week in "Hours" column Over 40 hours per week and hours worked on a university recognized holiday It depends if "Other FLSA Earnings" are involved. - Without Other FLSA Earnings*WageType 205A (Premium Overtime) - automatically calculate OT pay @ 1.5 times employee's standard/base rate Enter # of hours over 40 hours in the week in "Hours" column. Calculated OT pay amount will display in the "OT Pay Subtotal" column. - With Other FLSA earnings*WageType 205M (Premium Overtime) - calculates OT pay @ specified rate-in-effect, requires the calculation of the employee's regular rate and rate-in-effect Enter # of hours over 40 hours in the week in "Hours" column and enter applicable rate-in-effect in "Rate-in- Effect" column. * Examples of "Other FLSA Earnings" include on-call pay and shift differential pay.
Review – FastFacts Key Concepts Calculate employees regular rate and rate-in-effect when for processing overtime pay when Other FLSA Earnings are involved such as shift differential pay, on-call pay, non-discretionary bonus payments Rate-in-Effect = (regular rate x 0.5) + employees standard/base rate
Review – FastFacts Key Concepts Paying Retroactive Salary – FLSA Regulations – An employer is required to pay one and one half times the amount of the salary increase for each overtime hour worked over the period of time covered by the retroactive pay. – If any previous overtime hours were paid using WT 205M, must manually recalculate overtime pay due for previous months and submit Bonus/Supplemental ISR using wage type 205M. (Refer to 6/7/2012 FastFacts) Avoid retroactive salary increases – manually calculating additional FLSA Premium OT may be required and may be very involved.
Review – FastFacts Key Concepts Paying Non-Discretionary Bonus – FLSA Regulations – Once bonus amount is ascertained, it must be apportioned back over the workweeks in which it was earned. – Employee receives additional pay for each workweek he worked overtime equal to: Please consult with HR for assistance. One half the hourly rate of pay allocable to the bonus amount Multiplied by Number of overtime hours worked over 40 hours in a week for bonus period
Review – FastFacts Key Concepts What are non-discretionary bonuses? Bonus is defined by contract, agreement, or promise to pay Employer retains no discretion to deny payment of bonus or change the amount to be paid Examples include: Bonuses that are announced to induce employees to work more steadily, rapidly or efficiently Bonuses to remain with the employer Attendance bonuses Individual or group production bonuses Bonuses for quality and accuracy of work Monthly or quarterly bonuses paid that are in part measured by or dependent on volume of work,
Review – FastFacts Key Concepts What qualifies as a discretionary bonus? Is given solely at the discretion of management in as far as: - if it would be paid and - the amount that will be awarded
Review – FastFacts Key Concepts To see all past FastFacts events, go to: http://www.hopkinsfastfacts.org/http://www.hopkinsfastfacts.org/ 1.Hours Worked & Time Off Plans – March 28, 2012 2.Understanding and Calculating Regular Rate – April 24, 2012 3.Tracking Time in E210 & Processing Overtime in SAP – May 10, 2012 4.Overtime Pay – Real-Life Scenarios & Special Issues - June 7, 2012