1. Special Payroll Calculations
Pamela Fagan Shull

2. Bonuses That Affect Overtime Rate of Pay
Nondiscretionary
Promise made to individual employee based on individual personal performance (on-call pay, attendance bonus, commissions, etc.)
Discretionary
No promise made – random
Other employees are involved

3. Example of Nondiscretionary Bonus Calculation
Janice worked 45 hours last week. She received an on-call pay of $50 for her on- call time for Saturday. Janice makes $8.00 per hour.
$8.00 x 45 = $360 + $50 = $410.00
$ ÷ 45 = $9.11
$9.11 x .5 x 5 = $22.78
$ $22.78 = $432.78

4. Guaranteed Hours Paid, But Not Worked
Employee worked a 40 hour week at $9.50 per hour. Employee asked to come in on day off and work for a couple hours. Employee guaranteed 4 hours pay 2 hours were physically worked on day off
40 x $ = $380.00
4 x $ = $
$380 + $38 = $418.00
$418 ÷ 42 = $
$9.95 x .5 x 2 = $
$418 + $ = $427.95

5. Weighted Average Overtime Calculations
25 $8.00 = $200.00
20 $8.50 =
$370.00
$370  45 = $8.22
$8.22 x .5 x 5 = $20.55
$ = $390.55

6. Overtime Pay For Piecework
Employee works at home and is paid $1.00 for each sweatshirt screen painted. Last week employee painted 500 sweatshirts and worked 50 hours.
$1 x = $500
$500 ÷ 50 = $ 10
$10 x .5 x 10 = $ 50
$500 + $50 = $550

7. Retail/Service Commission
Hourly rate plus commissions is one and one-half times the federal minimum wage ($7.25 x 1.5 = $10.875)
More than half of their pay comes from commissions

8. Tipped Credit FLSA min. hr. wage = $7.25 Max. tip credit = $5.12
Some states have a lower tip credit
$ $5.12 = $2.13 cash wages

9. Tipped Credit cont. Tip credit (46 hours x $5.12) = $235.52
Cash wages (46 hours x $2.13) = $97.98
Total straight compensation = $333.50
Overtime pay (1/2 x $7.25 x 6 hrs.) = $21.75
Total compensation = $355.25

10. Inside Sales – Salary + Commission
Their regular rate of pay on a weekly basis (hourly rate plus commissions) is at least one and one-half times the federal minimum wage in effect ($10.875); and
More than half of their pay for a representative period (at least one month) comes from commissions.

11. How To Calculate 1st $300 $250 $550 45 $12.22 2nd $350 $650 48 $13.54
Week
Salary
Commission
Total
Hours
Reg. Rate
1st
$300
$250
$550 45
$12.22
2nd
$350
$650 48
$13.54
3rd
$330
$630 55
$12.00
4th
$285
$585 42
$13.93
$1200
$1215
$2415