Presentation on theme: "Slide 1 FastFacts Feature Presentation June 7, 2012 To dial in, use this phone number and participant code… Phone number: 888-651-5908 Participant code:"— Presentation transcript:
Slide 4 Session Segments Presentation Sue and Jill will discuss the new E210 overtime report as well real-life scenarios and special issues regarding overtime. During the presentation, your phone will be muted. Q&A After the presentation, well hold a Q&A session. Well open up the phone lines, and youll be able to ask questions. Sue and Jill will answer as many of your questions as time allows.
Slide 5 Contact Us If you would like to submit a question during the presentation or if youre having technical difficulties, you can us at: You can also send us an instant message! GoogleTalk – AOL Instant Messenger – HopkinsFastFacts MSN –
Slide 6 Survey At the end of this FastFacts session, well ask you to complete a short survey. Your honest comments will help us to enhance and improve future FastFacts sessions.
Slide 9 1.Hours Worked & Time Off Plans – March 28, Understanding and Calculating Regular Rate – April 24, Tracking Time in E210 & Processing Overtime in SAP – May 10, Overtime Pay – Real-Life Scenarios & Special Issues - June 7, 2012 FastFacts Series on Compensation Topics
Slide 10 Review – FastFacts #1 Hours Worked & Time Off Plans Required to pay non-exempt employees for all time worked With or without supervisor approval Regardless of departmental budget contraints 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
Slide 11 Review – FastFacts #2 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 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 Total Earnings (minus exclusions) = total standard/base pay + inclusions
Slide 12 Review – FastFacts #3 Recording Time in the E210 System & Processing Overtime Pay in SAP All full-time and part-time employees must complete E210. Keeping accurate time records is required by law. Non-exempt employees must record time weekly; supervisors must review E210 entries weekly. Non-exempt employees must enter actual hours worked and leave used weekly. Round to nearest quarter hour when recording OT hours and paying those hours on the Bonus/Supplemental ISR. Explanations required for E210 codes P, C, W, AH, XO.
Slide 13 Review – FastFacts #3 contd Hours Worked Time Off Greater than standard workweek but less than 40 hours/week 1 hour1 hours Greater than 40 hours/week1 hour1.5 hours Recording Time in the E210 System & Processing Overtime Pay in SAP Leave time and leave time + hours worked – cannot be greater than scheduled work hours in a day Time off in lieu of pay within same pay period as follows:
Slide 14 Review – FastFacts #3 contd Wage TypeWhen to use Standard Overtime standard/base hourly rate Premium Overtime 1.5 times standard/base hourly rate Premium Overtime specified rate for # of hours worked; also use when there are other FLSA earnings Other FLSA Earnings (2290)Pay shift specified rate for # of hours worked Other FLSA Earnings (3040)Pay amount specified for on-call Recording Time in the E210 System & Processing Overtime Pay in SAP Supervisor (or designate) must review non-exempt E210 weekly & submit Bonus/Supplemental ISR to pay additional hours worked within next pay period
Slide 15 Introducing… The HX code in E210 Effective July 1, 2012 Use when working on a holiday The E210 Overtime Report Available beginning July 1, 2012
Slide 16 E210 Overtime Report For non-bargaining unit non-exempt employees who record hours worked in E210 only Identifies non-exempt employees who worked overtime hours Bonus Feature: Identifies employees who may have worked less than their standard hours in a workweek OR who may not have recorded all hours worked
Slide 17 E210 Overtime Report Uses E210 entries and automates calculation of: Total hours recorded Total hours worked Total leave and HX hours used (exempt from premium overtime) Total holiday hours worked Total hours standard overtime Total hours premium overtime Total holiday hours premium overtime Specifies Bonus/Supplemental ISR submit date from HR/Payroll Shared Services cut-off dates based on workweek ending dates
Slide 18 New Overtime Report in E210 Key Features Department selection – may specify department code using 5, 3, or 1 digit(s) 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
Slide 19 New Overtime Report in E210 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
Slide 20 New Overtime Report in E210
Slide 21 New Overtime Report in E210 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
Slide 22 New Overtime Report in E210 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.
Slide 23 New Overtime Report in E210 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
Slide 24 New Overtime Report in E210
Slide 25 New Overtime Report in E210 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
Slide 26 New Overtime Report in E210 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! E210 Overtime Report should be a guide; may need to manually calculate hours - refer to FastFacts #3
Slide 27 New Overtime Report in E210 Important To Note! E210 Overtime Report calculations may not be accurate when an employee: Begins or ends employment mid-week Works additional hours one week and takes time off in lieu of pay the following week (Time Off Plan) Works as a required attendance personnel when the university or office is closed E210 Overtime Report calculations may not be accurate for dates prior to July 1, Require close review! May need to manually re-calculate hours on E210 Overtime Report
Slide 28 New Overtime Report in E210 Important To Note! Negative number in the Standard OT, WT2084 column signals one of two things: Time missing or entered incorrectly in E210; corrections in E210 are required ISR may need to be submitted to reduce pay To compensate for additional hours worked, must submit a Bonus/Supplemental ISR!
Slide 29 New Overtime Report in E210 When will the E210 Overtime Report be available? July 1, 2012 Will there be training in the use of the Overtime Report? In-person training for timekeepers will be scheduled shortly. Whom may I call if I need help in understanding my departments Overtime Report? Contact your departmental timekeepers or Human Resources Divisional Leave Administrator.
Slide 30 Special Scenarios Receiving pay for holiday hours worked Receiving time off in lieu of pay for holiday hours worked Scenario #2 – Paying for other FLSA Earnings Scenario #3 – Overtime Pay & Bonus Scenario #4 – Overtime Pay & Retroactive Increase Scenario #1 – Working on a Holiday
Slide 31 #1 – Working on a Holiday Because of an upcoming project deadline, Mary was asked by her supervisor to work additional hours. Her supervisor gave her permission to work on Martin Luther King Day, Monday, January 16, 2012, which is a university holiday. Mary also worked additional hours on Tuesday, Wednesday, Thursday and Friday. Works 40 hour workweek, 8 hours/day, 8:30 a.m. – 5:00 p.m., Monday – Friday Standard/base hourly rate = $10.00 Marys completed E210 timesheet
Slide 32 #1 – E210 Overtime Report The E210 Overtime Report automatically calculates the hours worked and overtime hours. 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.
Slide 33 #1 – Processing OT in SAP To pay Mary for working on MLK holiday and the six additional hours, Marys supervisor submits a Bonus/Supplemental ISR for weekending 1/22/ Hours $60.00 Total OT Pay 5 Hours $15.00 OT Rate $75.00 Total OT Pay Wage Type 2084 Wage Type 205A
Slide 34 #1 – Processing OT in SAP Wage Type 205A always calculates additional hours worked at the rate of 1.5 times the employees standard/base rate. Premium for working on MLK holiday is based on university policy, not required by the FLSA. Always 1.5 times the employees standard/base rate. In this scenario, no need to calculate regular rate. Mary did not receive any other additional compensation. Marys regular rate is the same as her standard/base rate.
Slide 35 #1 – Holiday: Time Off WHAT IF? Mary asks her supervisor if she may take time off the following week in lieu of pay for all the additional hours she worked this week, which is then approved by her supervisor because the project would be completed by then. Holiday Hours Worked: Since Mary worked 5 hours on MLK holiday, she may take 7.5 hours time-off in lieu of pay. Additional Overtime Hours Worked: For the additional 6 hours Mary worked from Tuesday to Friday, she may take 6 hours time-off in lieu of pay.
Slide 36 #1 – Holiday: Time Off Marys completed E210 timesheet Total 13.5 hours of time off in lieu of pay
Slide 37 #1 – Holiday: Time Off E210 Overtime Report Bonus/Supplemental ISR is NOT Required Because Mary is taking time off in lieu of pay for all additional hours she worked, there was no need to submit a Bonus/Supplemental ISR for week-ending 1/22/12 even though the Overtime Report indicates 6 hours under Standard OT and 5 hours under Premium OT-Holiday Worked.
Slide 38 #2 – Paying other FLSA Earnings Paul is a Technical Support Analyst in the IT Department located at the Homewood Campus. Paul often travels to other worksites to provide desktop computing services. He is periodically required to carry a beeper on the weekend and sometimes works an evening and night shift. Works 37.5 hour workweek, 7.5 hours/day, 8:30 a.m. - 5:00 p.m., Monday – Friday Standard/base hourly rate = $21.00 On-call pay = $200 per weekend Shift differential pay = $1.00/hr. evening; $1.50/hr. night Monday, April 2: Paul is scheduled to go directly from his home to a client department at Eastern High School. However, he must first pick up two computers that were fixed over the weekend at Homewood before going to Eastern. He picked up the computers at 7:30 a.m., then traveled to Eastern. At Eastern, he ended up eating and working through his lunch hour because he had another appointment at 1:00 p.m. Part of the lunch time included waiting for back-up from his office and downloading special software. Paul left work at 4:00 p.m. to make up for the hour he arrived early. Weekend: Paul has on-call duty. He answered one call on Saturday morning (under 5 minutes). At 1:00 p.m. he received a call that required him to be at work at 9:00 p.m. He worked from 9:00 p.m. until midnight.
Slide 39 #2 – Hours Worked Pauls completed E210 timesheet Understanding hours worked Monday, April 2nd – Total hours worked is 8.5 hours. 8.5 hours – Worked from 7:30 a.m. until 4:00 p.m. Includes 1 hour lunch time because Paul worked during his lunch break. Paul was scheduled to commute directly from home to an alternative work location (Eastern). Normally this time would not be hours worked, however Paul had to stop by his office at Homewood for official business. All work activities from the time arrived at Homewood until the end of his work day are considered hours worked. This includes commute time between work locations. Paul left an hour early from his normal schedule to make up for the hour he arrived early. The time from 4:00 p.m. to 5:00 p.m. was not worked.
Slide 40 #2 – E210 Overtime Report The E210 Overtime Report automatically calculates the hours worked and overtime hours. Determining Standard & Premium Overtime Hours: Total Hours Recorded = 47 hours Total Hours Worked = 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
Slide 41 #2 – Regular Rate On-call and shift differential pay are included as part of regular rate and are considered in calculating overtime. Total hours worked = hrs (excludes 3.75 hrs VL) Standard/base rate = $21.00/hr Total standard/base pay (43.25 hrs x $21.00/hr)= $ Total evening shift hours= 3 hours Evening shift differential rate= $1.00/hr Total shift differential pay (3 hrs x $1.00/hr) = $3.00 On-Call pay= $ Total earnings (minus exclusions) = total standard base pay + inclusions = $ total standard base pay + $3.00 shift differential pay + $ on-call pay = $ Regular rate = total earnings (minus exclusions) total number of hours worked = $ hours = $25.69/hr Premium overtime pay ($25.69/hr regular rate x 0.5 x 3.25 premium OT hours) = $41.75 Pay for vacation leave = ($21.00/hr standard/base rate x 3.75 vacation leave hours) = $78.75 Tot weekly pay ($ tot earnings+$78.75 vacation pay +$41.75 premium OT) = $1,231.75
Slide 42 #2 – Processing in SAP Rate in Effect Calculation required to process in SAP Rate-in-Effect = (regular rate x 0.5) + employees standard/base rate = ($25.69 x 0.5) + $21.00 = $33.85
Slide 43 #2 – Processing in SAP Pauls completed Bonus/Supplemental ISR for weekending 4/8/2012 Wage Type 2084 Wage Type 205M 6.25 Hours $ Total OT Pay 3.25 Hours $33.85 Rate in Effect $ Total OT Pay
Slide 44 #2 – Processing in SAP Wage type 2290 & Wage Type Hours shift diff $1.00 per hour $3.00 Pay subtotal $ On call $ Pay subtotal $ Total Other FLSA Earnings Pauls completed Bonus/Supplemental ISR for weekending 4/8/2012
Slide 45 #2 – What if Paul Received a Bonus? WHAT IF? For the week ending 4/8/2012, Paul received a $ lump sum discretionary bonus by his department for a significant project he completed. Should this award be included in the calculation of his regular rate for overtime? The answer: No. Because the $ is a discretionary bonus, it should not be included in the calculation of his regular rate for overtime pay. WHAT IF? On July 1, 2012, Paul receives a $ end of year non- discretionary bonus as part of a formal Employee of the Year program in his department. Should this award be included in the calculation of his regular rate for overtime? The answer: Yes. Because the bonus is non-discretionary, it should be included in the calculation of his regular rate for overtime pay. Additionally, because the bonus is for work performed over the past year, it requires a re-calculation of all overtime pay made in the last year for hours worked over 40 hours in a workweek.
Slide 46 Scenario #3 & #4 3.Overtime Pay & Bonus 4.Overtime Pay & Retroactive Increase Jane is a Patient Service Coordinator in the Physician Billing area. She works a 40 hour workweek and is paid a standard/ base hourly rate of $10.00 hour. Jane received a non-discretionary bonus that was paid a week after it was awarded because the amount wasnt known until the following week. Later in the year, Jane also was given a retroactive salary increase.
Slide 47 #3 – Overtime Pay & Bonus Paying Non-Discretionary Bonus – FLSA Regulations Once bonus amount is ascertained, it must be apportioned back over the workweeks in which it was earned. Employee receives additional pay for each workweek he worked overtime equal to: Please consult with HR for assistance. One half the hourly rate of pay allocable to the bonus amount Multiplied by Number of overtime hours worked over 40 hours in a week for bonus period
Slide 48 #3 – Overtime Pay & Bonus NON-DISCRETIONARY BONUS PAY NOT YET KNOWN Hourly Rate# HoursStraight Pay Week 1Standard/Base Workweek Pay$ $ Standard OT Pay$ $ Bonus PayUnknown Total Earnings50$ Regular Rate (Tot earnings/Tot # hrs worked) $10.00 ($500.00/50hrs) FLSA Premium OT Pay (Regular rate x 0.5 x Tot # OT hrs)$5.00 ($10.00 x 0.5)10$50.00 Total Pay$550.00
Slide 49 #3 – Overtime Pay & Bonus NON-DISCRETIONARY BONUS PAY KNOWN Hourly Rate# HoursStraight Pay Week 1Standard/Base Weekly Pay$ $ Standard OT Pay$ $ Bonus Pay $50.00 Total Earnings50$ Regular Rate (Tot earnings/Tot # hrs worked) $11.00 ($550.00/50 hrs) FLSA Premium OT Pay (Regular rate x 0.5 x Tot # OT hrs)$5.50 ($11.00 x 0.5)10$55.00 Total Pay$605.00
Slide 50 #3 – Overtime Pay & Bonus Assume: The following week, a non-discretionary bonus was awarded for work in week 1. Bonus amount is $ To recalculate OT pay: 1.Calculate regular rate of bonus amount = bonus amount/hours worked = $50.00 bonus/50 hours worked = $ Calculate half of regular rate = regular rate x 0.5 = $1.00 x 0.5 = $ Calculate additional OT pay due = half of regular rate x number of OT hours = $0.50 x 10 = $5.00
Slide 51 #3 – Overtime Pay & Bonus Summary: Total already paid = $ (Straight pay + OT pay) Additional OT pay due = $ 5.00 Bonus pay= $ Total pay = $ To pay additional OT pay due, submit Bonus/Supplemental ISR using wage type 205M. To pay non-discretionary bonus amount, submit Bonus/Supplemental ISR 3026 or ISR 3050 depending on the type of non-discretionary pay.
Slide 52 Paying Retroactive Salary – FLSA Regulations When a retroactive pay increase is awarded, the employees regular rate of pay is increased for the period of time it covers. 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. #4 – Overtime Pay & Retroactive Increase
Slide 53 SALARY INCREASE NOT YET KNOWN Hourly Rate# HoursStraight Pay Week 1Standard/Base Weekly Pay$ $ Salary IncreaseUnknown Standard OT Pay$ $ Total Earnings50$ Regular Rate (Tot earnings/Tot # hrs worked) $10.00 ($500.00/50hrs)$10.00 FLSA Premium OT Pay (Regular rate x 0.5 x Tot # of OT hrs)$5.00 ($10.00 x 0.5)10$50.00 Total Pay$ #4 – Overtime Pay & Retroactive Increase
Slide 54 #4 – Overtime Pay & Retroactive Increase SALARY INCREASE KNOWN Hourly Rate# HoursStraight Pay Week 1Salary Increase$1.25 Standard/Base Weekly Pay $11.25 ($ $1.25)40$ Standard OT Pay$ $ Total Earnings50$ Regular Rate (Tot earnings/Tot # hrs worked) $11.25 ($562.50/50hrs)$11.25 FLSA Premium OT Pay (Regular rate x 0.5 x Tot # OT hrs) $5.625 ($11.25 x 0.5)10$56.25 Total Pay$618.75
Slide 55 #4 – Overtime Pay & Retroactive Increase Assume: The following week, a retroactive is given. Annual salary increase is $2, To recalculate OT pay manually (required only for 205M): 1.Calculate regular rate of salary increase amount = annual salary increase amount/annual standard hours = $2,600 annual salary increase/2080 annual standard hrs = $ Calculate half of regular rate = regular rate/0.5 = $1.25/0.5 = $ Calculate additional OT pay due = half of regular rate x number of OT hours = $0.625 x 10 = $6.25
Slide 56 #4 – Overtime Pay & Retroactive Increase Summary: Total already paid = $ (straight pay + OT pay)* Additional straight pay due = $ ($1.25 x 50 hours)* Additional OT pay due = $ 6.25 ($1.25 x 0.5 x 10 hours)* Total pay = $ *SAP will automatically calculate these totals if premium overtime wage type 205A was used. If 205A wage type was not used, pay by submitting Bonus/Supplemental ISR using 205M wage type. Note: SAP will also re-calculate standard overtime paid when using wage type 2084
Slide 57 OT Pay & Bonus & Retroactive Increase Key Concepts Process for calculating additional overtime pay for non-discretionary bonus & retroactive salary increases is basically the same. Calculate regular rate. Multiply 0.5 of the regular rate by total number of overtime hours for the period. The difference is the denominator for calculating regular rate. Non-Discretionary Bonus: Use total number of hours worked for the period. Salary Increase: Use total number of standard hours for the year. Avoid retroactive salary increases – manually calculating additional FLSA Premium OT may be required.
Slide 58 Summary In summary: E210 Overtime Report is available beginning July 1, Watch out for situations when hours on the report may require close review and manual re-calculation. Non-discretionary bonus & retroactive salary increase may require additional overtime pay. If 205M wage type was used, manual recalculation & submission of Bonus/Supplemental ISR is required. Overtime hours will be paid only when a Bonus/Supplemental ISR is submitted in SAP. When unsure, consult your Divisional HR Office, Human Resources Representative, and Timekeeper.
Slide 59 Summary This concludes our four-part FastFacts series. Go to to access a recording of this and previous FastFacts.http://hopkinsfastfacts.org/ 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 Tracking, Calculating & Processing Overtime Scenarios – June 7, 2012
Slide 60 Polling Question Are your interested in attending a live in-person session where Subject Matter Experts will be available to answer any specific questions you have regarding any of the four Compensation FastFacts events?
Slide 61 Polling Question Please indicate which of the following topics you would like to review further: 1.Hours Worked 2.Time Off Plans 3.Calculating Regular Rate 4.Tracking Time in E210 5.Processing Overtime in SAP 6.E210 Overtime Report
Slide 62 Polling Question If a live in-person session is offered, what specific questions or topics would you like addressed?
Slide 63 Were going to open the phone lines now! There will be a slight pause, and then a recorded voice will provide instructions on how to ask questions over this conference call line. Well be answering questions in the order that we receive them. Well also be answering the questions that were ed to us during the presentation. If theres a question that we cant answer, well do some research after this session, and then the answer to all participants. Q&A
Slide 64 Thank You! Thank you for participating! We would love to hear from you. Are there certain topics that you would like us to cover in future FastFacts sessions? Would you like to be a FastFacts presenter? Please us at:
Slide 65 Survey Before we close, please take the time to complete a short survey. Your feedback will help us as we plan future FastFacts sessions. Click this link to access the survey… Thanks again!