Medlin Payroll Software has two methods available for entering regular hours and overtime hours.
With either method, the employee is paid 1.5 times their Regular Rate of Pay (RROP) when they work overtime.
Overtime as Excess
•On the Setup tab, check the Calculate Overtime as Excess box.
•Using this method is the easiest way to make certain you do not pay worker's compensation insurance on the overtime premium (the extra half time).
•With this method, the Paycheck screen hour entry fields are labeled
•TOTAL Hours
•Enter the TOTAL hours worked, including overtime.
•OT Prem Hrs
•Enter the hours - the part of the total hours where the employee also earned the overtime premium - the extra .5 times their regular pay rate.
•E.g. If the employee worked 39 hours at their regular rate, and 5 hours at their overtime rate: TOTAL Hours = 44, OT Prem Hrs = 5.
Overtime NOT as Excess
•When the Calculate Overtime as Excess box is not checked, the Paycheck screen hour entry fields are labeled
•Regular Hours
•Enter the hours worked, not including overtime.
•Overtime Hrs
•Enter the overtime hours worked.
•E.g. If the employee worked 39 hours at their regular rate, and 5 hours at their overtime rate: Regular Hours = 39, Overtime Hrs = 5.
•Keep in mind that this method requires some manual calculations when preparing Worker's Compensation reports, to avoid paying WC insurance on the overtime premium - the extra half time.
BOTH methods will result in the same gross pay, they just go about it a little differently.
Example
•Employee paid weekly at a rate of $10 per hour.
•Employee works 45 hours for the week, 5 of those hours are overtime.
•Gross pay for the week is $475.
•Calculate Overtime Calculated as Excess IS checked
•Enter 45 as the TOTAL Hours - $450.00 = $45 X $10.
•Enter 5 as the OT Prem Hrs - $25.00 = 5 X .5 X $10.
•Gross Pay: $475
•Calculate Overtime Calculated as Excess is NOT checked
•Enter 40 as the Regular Hours - $400.00 (40 X $10)
•Enter 5 as the Overtime Hrs - $75 = 5 X 1.5 X $10.
•Gross Pay: $475