Setting Up Overtime Calculation

You can choose among several methods for calculating overtime pay for employees. For example, you can set up your records so that payroll calculates overtime based on the FLSA (Fair Labor Standards Act) for some or all of your employees.

FLSA rate generally refers to a rate that is the total pay for employment (including other compensation such as bonuses, shift differential, and so on), divided by the number of hours worked.

Sage 300 Payroll automatically calculates overtime for the current period based on the overtime calculation method, overtime schedule and regular hours, specified on the Payroll Employees window. You can override the automatic overtime calculation for an employee when you enter a timecard.

To Set Up for Overtime Calculation

1. Create at least one overtime schedule.
2. You may want to set up certain earnings to be included in an overtime calculation that is based on the FLSA. For each such earning, on the Earnings And Deductions window (in Payroll Setup), select the earning which must be one of these types:
• A Salary & Wages type that uses an employee calculation method of flat, fixed or hourly rate.
• Reported tips.
• Allocated tips.
3. Select Include in FLSA Overtime Calculation

   This field displays only for the following types of earnings:

   • Salary & Wages that uses an employee calculation method of Flat, Fixed, or Hourly Rate.
   • Reported Tips.
   • Allocated Tips.

   Select this check box if you want to include this earning in the regular pay rate that is used to calculate FLSA overtime. After you save this setting, this will be the earning's default setting when you subsequently assign the earning to employees.

   Note: Changing this field does not update the setting for existing employees with the earning assigned.

   You can change the setting for employees who are assigned the earning using the Pay tab table of the Payroll Employees window or the Update Earn/Ded for All Employees window in Payroll Employees.

4. Click Save.

5. Open the Payroll Employees window. On the Pay tab, for each employee:

   1. In the Overtime Calculation field, select one of the Overtime Calculation methods (the default is Hourly Rate). If you want to calculate overtime based on the FLSA, be sure to choose one of the FLSA methods.
   2. In the Earnings/Deductions table, for each earning that has been set up as described in step 2 you can change the Include in FLSA Overtime Calculation field.

      Tip: If you want to update the Include in FLSA Overtime Calculation field for a set of employees, you can use the Update Earn/Ded for All Employees window.

   3. Check that the employee's regular hours (per period, day, or week) are appropriate.

   4. On the Class/Schd tab of the Payroll Employees window, assign an overtime schedule to the employee.

To calculate overtime pay, enter a timecard

• If an employee worked overtime, enter the overtime information on a non-reusable timecard to have payroll automatically calculate overtime pay.
• See Entering Overtime on a Timecard for more details about entering and processing overtime.
• You can also override this overtime setup.
• You should verify that the number of days worked on the timecard reflects your intentions.