Paying overtime under semi-monthly frequency must be done a certain way.
Figuring overtime pay under a semi-monthly frequency is a bit more complicated than it is under other pay frequencies. The defined workweek for a firm combined with how the work days fall for each given pay period are things that must be taken into account. In addition, payroll personnel must ensure that they are complying with federal, and state wage and hour laws.
Instructions
1. The time punch data for each employee needs to be assembled into a data sheet such as a spreadsheet or in a batch in a payroll software program. Hours worked should be grouped by the workweek in which the hours were worked.
2. Total hours worked per workweek should be added up. If the period starts with a partial workweek, hours from the first portion of work week that appeared on the prior payroll should be taken into account when figuring up total hours for the workweek. The hours from the prior period should not be paid again. They should only be used to determine how much overtime is due on the next payroll.
3. Figure regular and overtime pay for the complete workweek(s) on the current payroll. For most payroll runs, there will only be one complete week. However, for periods that are 14 days or more, there could potentially be two complete weeks. Weeks that are completely within a singular pay period do not rely on data from prior or future payrolls.
4. The latter part of a pay period, like the first part, will typically be a partial week. It will be the first portion of the workweek that will conclude on the next run. Figure total hours for that partial workweek and pay overtime if it's due.
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