An employee works two different types of jobs within the same company. Even if an employee is performing two different kinds of work with different pay rates, the hours must be combined for overtime pay purposes. As an employer, you can ask an employee to give evidence to confirm why they have been away from work at … One answer to this may lie in the method of offering dual or split payrolls to expat employees as a means of spreading out the risk, and minimizing adverse changes in the salary amount. What is the best way to establish this employee in myob so that her annual leave entitlements and eventual leave loading correctly reflect the differing pay rates. Although it is possible for an employer to have two different hourly wage rates for two different types of work for the same employee, the employer can't get around mandatory overtime compensation by only charging the overtime to the lower waged work. Also, when an employee does not work a day the employer can pay regular rate without shift differential. Yes, employers can pay different rates on vacation time. QuickBook... *Not sure which Payroll service you have? HR On-Call, LLC This is a perfectly acceptable practice as long as the employee is actually performing two or more different types of work and the employer is not using multiple job rates to avoid compliance with overtime regulations. To break this down, here is a long example, the regular rate of an employee who works 40 hours per week at $10 per hour as a Receptionist ($400), and works 2 hours that same week at $50 per hour as a Design Coordinator ($100), is $500 divided by 42 hours or $11.90 per hour. A little more about us: Create an hourly pay rate type In Intuit Online Payroll Accordingly, under the SCA, employers can still pay workers performing two different jobs two different rates of pay. Usually these employees are paid different rates of pay for the different work they perform because one job requires more skill than the other. Susan Arnold You can have up to 8 different hourly rates for each employee. In the Employee list, click the employee's name and then click Edit employee. Elena’s employer … Susan has 20+ years of HR experience and provides a HR presence to business organizations without the overhead expense of a full-time employee. § 778.419. Feel free to reach out anytime. If you don’t pay your day-rate employees overtime, you need to rectify the situation immediately. Susan Arnold, owner and lead HR Consultant at HR On-Call, LLC. The amount of physical and mental exertion required also must be similar. Setting up an employee with 2 different pay rates I have one employee who works 2 jobs within our business.. each with a different pay rate. § 778.115 Employees working at two or more rates. Example: Elena works as a part-time legal secretary, working about 30-hours per week. The employer wants to track how much time the employee spends on each job, so the employer has him use two different time clocks. It may seem like an obvious yes, but the … I will contact you to discuss.Suzanne, Your email address will not be published. For an employer with an employee or employees working two different jobs in one business, we recommend: An employment contract for each role, clearly setting out the different duties, pay rates, classifications under any applicable modern awards or enterprise agreements, etc. You want to calculate OT at the lower rate; the employee thinks you should calculate it at the higher rate. Joe drives 3 hours each day to and from a job site. Full-time and part-time employees get 10 days each year of paid sick or carer’s leave. 29 CFR 778.115. Although day-rate employees are paid a flat rate for the entire day, you must still pay them overtime if they work more than 40 hours per week. Set up employees. Typically, the overtime rate is easy to calculate by taking the employee’s regular hourly rate and multiplying by 1.5. In the situation of an employee who works two different jobs at two different rates of pay, the FLSA allows two different methods of computing the regular rate for overtime calculation purposes: 1) the weighted average and 2) the regular rate associated with the job that caused the overtime to occur. Employees Working at Two or More Rates. This pre-recorded webinarwill go over how to set up 1099s in your If you have employees who are paid at two or more hourly rates, you can set up these rates in your payroll account. §778.419(a), an employer and employee may agree, before the work is performed, that the overtime rate will be based on the regular rate that applies to the type of work performed during the hours in excess of forty. For straight-time purposes, the employee is simply paid at the rate called for by the particular job being performed. For employees who are paid on an hourly basis, the regular rate of pay is the same as the hourly pay rate. Employees who are paid at more than one rate of pay must be paid for leave under the law at the weighted average of those rates. Divide the $336 by the total number of hour… Sales Tax. (The employee in the example has already been paid straight time for the first 2 overtime hours up to 40 and is only entitled to the additional “half” of the time and one-half of overtime pay on the balance over 40.) To do this….I would simply put this in writing so the employee clearly understands and agrees to this pay method. That is, the earnings from all such rates are added together and this total is then divided by the total number of e. Susan@HROn-Call.com. You can also control the rate used to calculate overtime and double overtime. Hourly 2), and the rate per hour. That leaves the question of how to calculate overtime given that the employee is paid at two different pay rates for the different jobs. When you add an employee, you can enter up to eight hourly pay rates. We pay one a flat salary ($120,000). rates are added together and this total is then divided by the total number of hours worked at all jobs. Calculating overtime in these situations can be tricky, therefore, I encourage you to contact your HR Consultant for guidance. Typically, according to the FLSA regulations found at 29 C.F.R. All you have to do is add an additional pay type. The overtime premium owed the employee is an additional $5.95 ($11.90 divided by 2) for each hour over 40, regardless of which job the employee performs during the extra hours. The weighted average is the total regular pay divided by the total hours worked in the week. The Ups and Downs of the stock market….are you buckled in. Is it unfair to pay two different employees a different wage or remuneration for the same work? Susan helps business owners improve employer/employee relationships and allows them to focus on their business while resting assured that they are in full compliance with state and federal law. You can receive only overtime pay under FLSA if the primary duties between both jobs fulfill the criteria for non-exemption instead of exemption. The employee is due time and a half, but at what rate? Accordingly, under the SCA, employers can still pay workers performing two different jobs two different rates of pay. Employees being paid two or more rates. So, if you create a pay rate type called Cash Register, you can pay more or less experienced employees at different rates using the same pay rate type. If the training time is paid at a lower rate, the employer must calculate the overtime rate by first determining a weighted “regular rate of pay”. Pursuant to Section 7(g)(2) of the FLSA, an employer alternatively may pay an employee overtime at one-and-one-half times the bona fide rate applicable to the type of work being performed during the overtime hours. I have an employee who performs 2 different jobs for my organization, Should I allow this? You can do this as long as you are paying them overtime for those hours worked over 40. An employer can let the employee work through their notice period, pay it out to them (also known as pay in lieu of notice), or give a combination of the two. What is the best way to establish this employee in myob so that her annual leave entitlements and eventual leave loading correctly reflect the differing pay rates. I'm always here for you if you need anything else. For employers, multiple pay rates add another level of complexity to the payroll process—particularly once overtime becomes a factor. Q. Your email address will not be published. Let’s break it down together using an example. The employee’s regular and overtime rates may vary from week to week with the number of hours spent performing each job. Overtime can be paid at any rate , but it should specify in your contract what the rate is. Sales & Non-exempt employees working more than 40 hours in a workweek must be paid an overtime rate. And you can even pay different employees different rates for the same pay rate type. The Employee Retirement Income Security Act (ERISA) requires that any employee that works at least 1,000 hours a year be extended the option to participate in an employer retirement plan. Is it unfair to pay two different employees a different wage or remuneration for the same work? Yes, you can pay two different hourly rates, MD15. Day-rate employees are paid on a per-day basis as opposed to being paid a salary or an hourly rate. If you are unsure about how it applies to your situation you can call our Infoline on 13 13 94 or speak with a union, industry association or … Here's how: Click Workers. Elena is paid at a rate of $20 per hour. § 778.419. Alternatively, as explained in the FLSA regulations at 29 C.F.R. The employer just has an enhanced recordkeeping burden. You can use the same pay type for any of your employees. If you have employees working 2 different positions within your organization or have other HR related questions, please contact Susan at 515-401-2233 or Susan@HRon-call.com. Employers should make sure to keep precise records that break down the specific hours each employee worked at the different rates. The employer just has an enhanced recordkeeping burden. Can I pay the same employee at two different hourl... Can I pay the same employee at two different hourly rates in one month? The employee can choose to use existing leave under the employer’s policy. Here's how: You can check out this article for more information: Add multiple hourly pay rates. Connect with and learn from others in the QuickBooks Community. I. This method of computation is available for hourly employees only and does not apply to salaried employees. It makes no difference that some portion of those hours are spent performing different duties than other hours. Products, Track Click Employees. You can use the same pay type for any of your employees. Setting up an employee with 2 different pay rates I have one employee who works 2 jobs within our business.. each with a different pay rate. If two or more companies are both controlling the worker (i.e. If employees work at two different pay rates in a single workweek, the regular rate for the workweek is determined by adding the rates together and dividing the total by the number of hours worked. Check versions and dates here! I actually do have an employment situation like this – an agreed upon # of hours (in writing) at an agreed upon rate, but the total hours go over 40. The employee can choose to take EPSL during the two weeks of EFMLA, which would be paid at 2/3 of the employee’s regular rate. 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