| Classification: | Earnings |
| Category: | Overtime |
| Processing Type: | Nonrecurring |
The Straight Time Overtime element calculates the Straight Time portion of overtime earnings and adds the earnings to the regular hourly rate.
For correct calculation of the FLSA overtime base rate, you must identify whether to include the earnings in the overtime base rate calculation, and whether to count hours worked as FLSA hours. You select the FLSA Overtime Earnings and FLSA Overtime Hours check boxes to include the hours and earnings in the FLSA calculation
If the calculation rule is set to Hours * Rate * Factor, the system defaults the input value Multiple (or factor) to 1. Oracle suggests you make this input value non-user enterable or delete the input value to ensure the value remains at 1.
Best practice for entering Straight Time Overtime suggests you submit time with the date earned attribute. The system distributes the overtime for the pay period if date earned is not entered. If you enter date earned but not hours, the system determines the number of hours based on the work schedule/standard hours calculation.
See: Identifying the Earnings or Payment
| Input Values | Purpose of Entry |
|---|---|
| Pay Value | Short-circuits formula and provides Overtime earnings run result. |
| Hours | Gives overtime hours worked to formula. |
| Rate | Gives formula the rates to use. Entries here override Rate Code entries. |
| Rate Code | Gives formula the codes by which to locate rates in the Wage Rates table. |
| Multiple | Gives rate multiple for overtime hours to formula. |
| Jurisdiction | Location entered here prompts system to find the location's tax code in the table of jurisdiction codes, and use this code to override the code of the employee's regular work location. |
| Deduction Processing | Tax Only means, process tax deductions only for this earnings. Tax and Pre-tax Only means, process only these deductions for this earnings. Default is All. |
| Separate Check | Yes signals that this earnings should be paid by separate check. Default is No. |
| Reduce Regular Earnings | |
| Reduce Regular Hours |
| Classification: | Earnings |
| Category: | Overtime |
| Processing Type: | Nonrecurring |
| Calculation Rule: | Premium |
The earnings type Premium produces pay for overtime worked at premium rates. The formula calculates the premium or blended rates as FLSA Earnings/FLSA Hours. The FLSA Allocated balances determine the blended rate. The formula compares the blended rate to the standard rate using work schedule/standard hours and salary administration. You must select a Premium Calculation Rule at the payroll level. You select Blended Rate or Higher of Blended Rate or Normal Rate. The formula multiples this rate by a factor of .5 to calculate the pay value. You can modify the formula and change the input valude to 1 to specify doubletime. Do not select the FLSA Overtime Earnings and FLSA Overtime Hours check boxes when you define the Premium element. See: Further Payroll Information Window
If you enter a rate in the Rate input value, the rate overrides the calculation. If you enter a date earned, but not hours, the system determines the number of hours based on the work schedule/standard hours calculation.
| Input Values | Purpose of Entry |
|---|---|
| Pay Value | Short-circuits formula and provides Overtime earnings run result. |
| Hours | Gives overtime hours worked to formula. |
| Rate | Gives formula the rates to use. Entries here override Rate Code entries. |
| Rate Code | Gives formula the codes by which to locate rates in the Wage Rates table. |
| Multiple | Gives rate multiple for overtime hours to formula. |
| Jurisdiction | Location entered here prompts system to find the location's tax code in the table of jurisdiction codes, and use this code to override the code of the employee's regular work location. |
| Deduction Processing | Tax Only means, process tax deductions only for this earnings. Tax and Pre-tax Only means, process only these deductions for this earnings. Default is All. |
| Separate Check | Yes signals that this earnings should be paid by separate check. Default is No. |
| FLSA Allocated Earnings | The calculation uses the earnings to determine the blended rate. |
| FLSA Allocated Hours | The calculation uses the hours to determine the blended rate. |
| Reduce Regular Earnings | |
| Reduce Regular Hours |
Oracle Payroll creates a FLSA Period Adjustment Element for all elements defined with the Premium calculation rule. The application automatically attaches a proration event called Entry Changes for Proration to thie element. The payroll process creates an adjustment element entry for an employee if the following two conditions are met:
The Time Definition spans multiple pay periods.
The Premium element does not contain an entry in the Rate input value.