Slide 1 FastFacts Feature Presentation June 7, 2012 To dial in, use this phone number and...

FastFactsFeature Presentation

June 7, 2012

To dial in, use this phone number and participant code…

Phone number: 888-651-5908 Participant code: 182500

To participate via VoIP…

You must have a sound card

You must have headphones or computer speakers

© 2012 The Johns Hopkins University. All rights reserved.

Today’s TopicWe’ll be taking a look at…

Overtime Pay – Real-Life Scenarios & Special Issues

Today’s PresentersSue O’Hare – Sr. Compensation AnalystJill Horn – Compensation Manager

Session Segments

PresentationSue and Jill will discuss the new E210 overtime report as well real-life scenarios and special issues regarding overtime.During the presentation, your phone will be muted.

Q&AAfter the presentation, we’ll hold a Q&A session. We’ll open up the phone lines, and you’ll be able to ask questions. Sue and Jill will answer as many of your questions as time allows.

Contact Us

If you would like to submit a question during the presentation or if you’re having technical difficulties, you can email us at: [email protected] can also send us an instant message!

GoogleTalk – [email protected] Instant Messenger – HopkinsFastFactsMSN – [email protected]

Survey

SurveyAt the end of this FastFacts session, we’ll ask you to complete a short survey. Your honest comments will help us to enhance and improve future FastFacts sessions.

How To View Full Screen

Click Here

Overtime Pay – Real-Life Scenarios & Special Issues

1. Hours Worked & Time Off Plans – March 28, 2012

2. Understanding and Calculating Regular Rate – April 24, 2012

3. Tracking Time in E210 & Processing Overtime in SAP – May 10, 2012

4. Overtime Pay – Real-Life Scenarios & Special Issues - June 7, 2012

FastFacts Series on Compensation Topics

Review – FastFacts #1

Hours Worked & Time Off Plans

Required to pay non-exempt employees for all time workedWith or without supervisor approvalRegardless of departmental budget contraints

Generally include: wait time, on-call time, meal & rest periods, sleep time, travel time, lectures, meetings, training, pre/post activities

May only grant time off in lieu of pay for overtime hours worked during the same pay period (Time Off Plan)

Any time not worked (e.g., vacation, holiday) must be excluded from calculating overtime


Exclusions (Examples) Inclusions (Examples)

Discretionary bonus, pay for vacation and sick day, gifts, holiday premium pay

Hourly wages, shift differential pay, on-call pay, non-discretionary bonus

Regular RateKey concept – Rate used to calculate premium overtime pay. Premium OT pay is 1.5 times regular rate for hours worked in excess of 40 in a workweek.Not always equal to an employee’s standard/base hourly rateRegular Rate = total earnings (minus exclusions)

total number of hours worked

Total Earnings (minus exclusions) = total standard/base pay + inclusions


Recording Time in the E210 System & Processing Overtime Pay in SAP

All full-time and part-time employees must complete E210.Keeping accurate time records is required by law.Non-exempt employees must record time weekly; supervisors must review E210 entries weekly. Non-exempt employees must enter actual hours worked and leave used weekly.Round to nearest quarter hour when recording OT hours and paying those hours on the Bonus/Supplemental ISR.Explanations required for E210 codes P, C, W, AH, XO.

Review – FastFacts #3 cont’d

Hours Worked

Time Off

Greater than standard workweek but less than 40 hours/week

1 hour 1 hours

Greater than 40 hours/week 1 hour 1.5 hours


Leave time and leave time + hours worked – cannot be greater than scheduled work hours in a day Time off in lieu of pay within same pay period as follows:

Review – FastFacts #3 cont’d

Wage Type When to use

Standard Overtime (2084) Pay @ standard/base hourly rate

Premium Overtime (205A) Pay @ 1.5 times standard/base hourly rate

Premium Overtime (205M) Pay @ specified rate for # of hours worked; also use when there are other FLSA earnings

Other FLSA Earnings (2290) Pay shift differential @ specified rate for # of hours worked

Other FLSA Earnings (3040) Pay amount specified for on-call


Supervisor (or designate) must review non-exempt E210 weekly & submit Bonus/Supplemental ISR to pay additional hours worked within next pay period

Introducing…

The HX code in E210Effective July 1, 2012Use when working on a holiday

The E210 Overtime ReportAvailable beginning July 1, 2012

E210 Overtime Report

For non-bargaining unit non-exempt employees who record hours worked in E210 only

Identifies non-exempt employees who worked overtime hours

Bonus Feature: Identifies employees who may have worked less than their standard hours in a workweek OR who may not have recorded all hours worked

E210 Overtime Report

Uses E210 entries and automates calculation of:Total hours recordedTotal hours workedTotal leave and HX hours used (exempt from premium overtime)Total holiday hours worked Total hours worked @ standard overtimeTotal hours worked @ premium overtimeTotal holiday hours worked @ premium overtime

Specifies Bonus/Supplemental ISR submit date from HR/Payroll Shared Services cut-off dates based on workweek ending dates

New Overtime Report in E210Key Features

Department selection – may specify department code using 5, 3, or 1 digit(s)

For example, U4321, U43, or U

Date range for overtime reporting – E210 entries from July 1, 2011

Sort capability by:DepartmentEmployee last namePersonnel number (pernr)ISR processing date

New Overtime Report in E210

Key FeaturesEasy access to view E210 time entries by clicking on an

employee’s pernr

Flags employees who had a change in hours or FLSA category during a month

Signals need to review E210 Overtime Report calculations closelyMay need to be manually re-calculated


Column Definitions

Department – legacy department code

Month Submitted Date – date last submitted

Form Status – status of E210 record, i.e., S = submitted only, A = submitted and approved, L = locked down

Week Ending – last day of the workweek when overtime hours were worked

Scheduled Total Hours – employee’s standard total weekly hours (not work schedule rule) when E210 for the month was submitted


Column Definitions

Total Hours Recorded – all hours entered including non-worked hours, e.g., vacation, sick, holiday, personal day, time off in lieu of pay

Total Hours Worked – all hours worked coded as X, HX, XO

Leave & (HX) Hours Exempt from FLSA Premium Overtime – non-worked hours, e.g., vacation, sick, all time not coded as X, XO.

Holiday Hours Worked (HX Code) – hours worked on a university designated holiday. Paid or to be taken as leave at 1.5 times of actual number of hours worked.

Standard OT (WT 2084) – overtime hours paid at employee’s standard/base rate. Use wage type 2084.

New Overtime Report in E210Column Definitions

Premium OT Non-Holiday Worked (WT205A) – number of overtime hours worked over 40 hours in the workweek paid at 1.5 times of employee’s standard/base rate. Use wage type 205A.

If other FLSA earnings are also paid during the same workweek, then use regular rate. Use wage type 205M.

Premium OT Holiday Worked (WT205A) – hours worked on a holiday paid at 1.5 times of employee’s standard/base rate. Use wage type 205A or take as leave at 1.5 times for all actual hours worked.

Process ISR By – HR/Payroll Shared Services website cutoff dates for Bonus/Supplemental ISR


Important To Note!

Usefulness of the report depends on:Integrity and accuracy of your employees’ position data in SAP and E210Correct usage of time and leave codesAccuracy and completeness of time recordedTimeliness of recording time worked and leave used


Important To Note!

E210 Overtime Report calculations may not be accurate when an employee’s:

Scheduled hours change during the monthFLSA status changes during the monthE210 is submitted in advancePosition information in SAP is inaccurate

Require close review!

E210 Overtime Report should be a guide; may need to manually calculate hours - refer to FastFacts #3


Important To Note!

E210 Overtime Report calculations may not be accurate when an employee:

Begins or ends employment mid-weekWorks additional hours one week and takes time off in lieu of pay the following week (Time Off Plan)Works as a required attendance personnel when the university or office is closed

E210 Overtime Report calculations may not be accurate for dates prior to July 1, 2012.

Require close review!

May need to manually re-calculate hours on E210 Overtime Report


Important To Note!

Negative number in the Standard OT, WT2084 column signals one of two things:

Time missing or entered incorrectly in E210; corrections in E210 are requiredISR may need to be submitted to reduce pay

To compensate for additional hours worked, must submit a Bonus/Supplemental ISR!


When will the E210 Overtime Report be available?July 1, 2012

Will there be training in the use of the Overtime Report?

In-person training for timekeepers will be scheduled shortly.

Whom may I call if I need help in understanding my department’s Overtime Report?

Contact your departmental timekeepers or Human Resources Divisional Leave Administrator.

Special Scenarios

Receiving pay for holiday hours workedReceiving time off in lieu of pay for holiday hours worked

Scenario #2 – Paying for other FLSA Earnings

Scenario #3 – Overtime Pay & Bonus

Scenario #4 – Overtime Pay & Retroactive Increase

Scenario #1 – Working on a Holiday

#1 – Working on a Holiday

Because of an upcoming project deadline, Mary was asked by her supervisor to work additional hours. Her supervisor gave her permission to work on Martin Luther King Day, Monday, January 16, 2012, which is a university holiday. Mary also worked additional hours on Tuesday, Wednesday, Thursday and Friday.

Works 40 hour workweek, 8 hours/day, 8:30 a.m. – 5:00 p.m., Monday – FridayStandard/base hourly rate = $10.00

Mary’s completed E210 timesheet

#1 – E210 Overtime ReportThe E210 Overtime Report automatically calculates the hours worked and overtime hours.

Determining Standard & Premium Overtime Hours:Total Hours Recorded = 46 hoursTotal Hours Worked = 43 hours (excludes 3 hrs holiday leave on Monday)Leave & (HX) Hours Exempt from FLSA Premium OT = 8 (includes 3 hrs holiday leave + 5 holiday hrs worked) Total Standard OT = 6 hoursTotal Premium OT (Holiday) = 5 hours

Holiday Hours Worked: Employee is paid his/her normal pay plus one-and-one half times his/her regular rate for all hours worked on a university holiday or receives equivalent time-off at a future date at a rate of one-and-one half times. No Pyramiding: Premium pay paid for working on a holiday is excluded from the calculation of overtime for the week.

#1 – Processing OT in SAPTo pay Mary for working on MLK holiday and the six additional hours, Mary’s supervisor submits a Bonus/Supplemental ISR for weekending 1/22/2012.

6 Hours$60.00 Total OT Pay

5 Hours$15.00 OT Rate$75.00 Total OT Pay

Wage Type 2084

Wage Type 205A

#1 – Processing OT in SAP

Wage Type 205A always calculates additional hours worked at the rate of 1.5 times the employee’s standard/base rate.

Premium for working on MLK holiday is based on university policy, not required by the FLSA.

Always 1.5 times the employee’s standard/base rate.

In this scenario, no need to calculate regular rate. Mary did not receive any other additional compensation. Mary’s regular rate is the same as her standard/base rate.

#1 – Holiday: Time Off

WHAT IF? Mary asks her supervisor if she may take time off the following week in lieu of pay for all the additional hours she worked this week, which is then approved by her supervisor because the project would be completed by then.

Holiday Hours Worked: Since Mary worked 5 hours on MLK holiday, she may take 7.5 hours time-off in lieu of pay.

Additional Overtime Hours Worked: For the additional 6 hours Mary worked from Tuesday to Friday, she may take 6 hours time-off in lieu of pay.

#1 – Holiday: Time OffMary’s completed E210 timesheet

Total 13.5 hours of time off in lieu of pay

#1 – Holiday: Time OffE210 Overtime Report

Bonus/Supplemental ISR is NOT RequiredBecause Mary is taking time off in lieu of pay for all additional hours she worked, there was no need to submit a Bonus/Supplemental ISR for week-ending 1/22/12 even though the Overtime Report indicates 6 hours under Standard OT and 5 hours under Premium OT-Holiday Worked.

#2 – Paying other FLSA Earnings

Paul is a Technical Support Analyst in the IT Department located at the Homewood Campus. Paul often travels to other worksites to provide desktop computing services. He is periodically required to carry a beeper on the weekend and sometimes works an evening and night shift.

Works 37.5 hour workweek, 7.5 hours/day, 8:30 a.m. - 5:00 p.m., Monday – FridayStandard/base hourly rate = $21.00On-call pay = $200 per weekendShift differential pay = $1.00/hr. evening; $1.50/hr. night

Monday, April 2: Paul is scheduled to go directly from his home to a client department at Eastern High School. However, he must first pick up two computers that were fixed over the weekend at Homewood before going to Eastern. He picked up the computers at 7:30 a.m., then traveled to Eastern.At Eastern, he ended up eating and working through his lunch hour because he had another appointment at 1:00 p.m. Part of the lunch time included waiting for back-up from his office and downloading special software. Paul left work at 4:00 p.m. to make up for the hour he arrived early.Weekend: Paul has on-call duty. He answered one call on Saturday morning (under 5 minutes). At 1:00 p.m. he received a call that required him to be at work at 9:00 p.m. He worked from 9:00 p.m. until midnight.

#2 – Hours Worked

Paul’s completed E210 timesheet

Understanding hours workedMonday, April 2nd – Total hours worked is 8.5 hours.

8.5 hours – Worked from 7:30 a.m. until 4:00 p.m. Includes 1 hour lunch time because Paul worked during his lunch break.Paul was scheduled to commute directly from home to an alternative work location (Eastern). Normally this time would not be hours worked, however Paul had to stop by his office at Homewood for official business. All work activities from the time arrived at Homewood until the end of his work day are considered hours worked. This includes commute time between work locations.Paul left an hour early from his normal schedule to make up for the hour he arrived early. The time from 4:00 p.m. to 5:00 p.m. was not worked.

#2 – E210 Overtime ReportThe E210 Overtime Report automatically calculates the hours worked and overtime hours.

Determining Standard & Premium Overtime Hours:Total Hours Recorded = 47 hoursTotal Hours Worked = 43.25 hours (excludes 3.75 hrs vacation leave on Friday)Leave & (HX) Hours Exempt from FLSA Premium OT = 3.75 (includes 3.75 hrs vacation leave) Total Standard OT = 6.25 hoursTotal Premium OT = 3.25 hours

#2 – Regular RateOn-call and shift differential pay are included as part of “regular rate” and are considered in calculating overtime.

Total hours worked = 43.25 hrs (excludes 3.75 hrs VL) Standard/base rate = $21.00/hr Total standard/base pay (43.25 hrs x $21.00/hr) = $908.25

Total evening shift hours = 3 hours Evening shift differential rate = $1.00/hr Total shift differential pay (3 hrs x $1.00/hr) = $3.00

On-Call pay = $200.00

Total earnings (minus exclusions) = total standard base pay + inclusions = $908.25 total standard base pay + $3.00 shift differential pay + $200.00 on-call pay = $1111.25

Regular rate = total earnings (minus exclusions) total number of hours worked

= $1111.25 43.25 hours = $25.69/hr

Premium overtime pay ($25.69/hr regular rate x 0.5 x 3.25 premium OT hours) = $41.75 Pay for vacation leave = ($21.00/hr standard/base rate x 3.75 vacation leave hours) =

$78.75 Tot weekly pay ($1111.25 tot earnings+$78.75 vacation pay +$41.75 premium OT) =

$1,231.75

#2 – Processing in SAP

Rate in Effect Calculation required to process in SAP

Rate-in-Effect = (regular rate x 0.5) + employee’s standard/base rate

= ($25.69 x 0.5) + $21.00 = $33.85

#2 – Processing in SAPPaul’s completed Bonus/Supplemental ISR for weekending 4/8/2012

Wage Type 2084

Wage Type 205M

6.25 Hours$131.25 Total OT Pay

3.25 Hours$33.85 Rate in Effect$110.01 Total OT Pay

#2 – Processing in SAP

Wage type 2290& Wage Type 3040

3 Hours shift diff$1.00 per hour$3.00 Pay subtotal

$200.00 On call$200.00 Pay subtotal$203.00 Total Other FLSA Earnings

Paul’s completed Bonus/Supplemental ISR for weekending 4/8/2012

#2 – What if Paul Received a Bonus?

WHAT IF? For the week ending 4/8/2012, Paul received a $200.00 lump sum discretionary bonus by his department for a significant project he completed.

Should this award be included in the calculation of his regular rate for overtime? The answer: No. Because the $200.00 is a discretionary bonus, it should not be included in the calculation of his regular rate for overtime pay.

WHAT IF? On July 1, 2012, Paul receives a $200.00 end of year non-discretionary bonus as part of a formal Employee of the Year program in his department.

Should this award be included in the calculation of his regular rate for overtime?The answer: Yes. Because the bonus is non-discretionary, it should be included in the calculation of his regular rate for overtime pay. Additionally, because the bonus is for work performed over the past year, it requires a re-calculation of all overtime pay made in the last year for hours worked over 40 hours in a workweek.

Scenario #3 & #4

3. Overtime Pay & Bonus4. Overtime Pay & Retroactive Increase

Jane is a Patient Service Coordinator in the Physician Billing area. She works a 40 hour workweek and is paid a standard/ base hourly rate of $10.00 hour. Jane received a non-discretionary bonus that was paid a week after it was awarded because the amount wasn’t known until the following week. Later in the year, Jane also was given a retroactive salary increase.

#3 – Overtime Pay & Bonus

Paying Non-Discretionary Bonus – FLSA RegulationsOnce bonus amount is ascertained, it must be apportioned back over the workweeks in which it was earned.Employee receives additional pay for each workweek he worked overtime equal to:

Please consult with HR for assistance.

One half the hourly rate of pay allocable to the bonus amountMultiplied by

Number of overtime hours worked over 40 hours in a week for bonus period

#3 – Overtime Pay & BonusNON-DISCRETIONARY BONUS PAY NOT YET KNOWN

Hourly Rate # HoursStraight

PayWeek 1 Standard/Base Workweek Pay $10.00 40 $400.00

Standard OT Pay $10.00 10 $100.00Bonus Pay UnknownTotal Earnings 50 $500.00

Regular Rate(Tot earnings/Tot # hrs worked)

$10.00 ($500.00/50hrs)

FLSA Premium OT Pay(Regular rate x 0.5 x Tot # OT hrs)

$5.00 ($10.00 x 0.5) 10 $50.00

Total Pay $550.00

#3 – Overtime Pay & BonusNON-DISCRETIONARY BONUS PAY KNOWN


PayWeek 1 Standard/Base Weekly Pay $10.00 40 $400.00

Standard OT Pay $10.00 10 $100.00Bonus Pay $50.00Total Earnings 50 $550.00


$11.00 ($550.00/50 hrs)


$5.50 ($11.00 x 0.5) 10 $55.00

Total Pay $605.00

#3 – Overtime Pay & Bonus

Assume: The following week, a non-discretionary bonus was awarded for work in week 1.Bonus amount is $50.00.

To recalculate OT pay:

1. Calculate regular rate of bonus amount= bonus amount/hours worked= $50.00 bonus/50 hours worked = $1.00

2. Calculate half of regular rate= regular rate x 0.5 = $1.00 x 0.5 = $0.50

3. Calculate additional OT pay due= half of regular rate x number of OT hours= $0.50 x 10 = $5.00

#3 – Overtime Pay & BonusSummary:

Total already paid = $550.00 (Straight pay + OT pay)

Additional OT pay due = $ 5.00

Bonus pay = $ 50.00

Total pay = $605.00

To pay additional OT pay due, submit Bonus/Supplemental ISR using wage type 205M.

To pay non-discretionary bonus amount, submit Bonus/Supplemental ISR 3026 or ISR 3050 depending on the type of non-discretionary pay.

Paying Retroactive Salary – FLSA Regulations

When a retroactive pay increase is awarded, the employee’s regular rate of pay is increased for the period of time it covers.

Employer is required to pay one and one half times the amount of the salary increase for each overtime hour worked over the period of time covered by the retroactive pay.

#4 – Overtime Pay & Retroactive Increase

SALARY INCREASE NOT YET KNOWN


PayWeek 1 Standard/Base Weekly Pay $10.00 40 $400.00

Salary Increase UnknownStandard OT Pay $10.00 10 $100.00Total Earnings 50 $500.00


$10.00 ($500.00/50hrs) $10.00

FLSA Premium OT Pay(Regular rate x 0.5 x Tot # of OT hrs)

$5.00 ($10.00 x 0.5) 10 $50.00

Total Pay $550.00



SALARY INCREASE KNOWNHourly Rate # Hours Straight Pay

Week 1 Salary Increase $1.25

Standard/Base Weekly Pay$11.25

($10.00 + $1.25) 40 $450.00

Standard OT Pay $11.25 10 $112.50

Total Earnings 50 $562.50


$11.25 ($562.50/50hrs) $11.25


$5.625 ($11.25 x 0.5) 10 $56.25

Total Pay $618.75


Assume: The following week, a retroactive is given.Annual salary increase is $2,600.00.

To recalculate OT pay manually (required only for 205M):

1. Calculate regular rate of salary increase amount= annual salary increase amount/annual standard hours= $2,600 annual salary increase/2080 annual standard hrs

= $1.25

2. Calculate half of regular rate= regular rate/0.5 = $1.25/0.5 = $0.625

3. Calculate additional OT pay due= half of regular rate x number of OT hours= $0.625 x 10 = $6.25


Summary:

Total already paid = $550.00 (straight pay + OT pay)*Additional straight pay due = $ 62.50 ($1.25 x 50 hours)*Additional OT pay due = $ 6.25 ($1.25 x 0.5 x 10 hours)*Total pay = $618.75

*SAP will automatically calculate these totals if premium overtime wage type 205A was used.

If 205A wage type was not used, pay by submitting Bonus/Supplemental ISR using 205M wage type.

Note: SAP will also re-calculate standard overtime paid when using wage type 2084

OT Pay & Bonus & Retroactive Increase

Key Concepts

Process for calculating additional overtime pay for non-discretionary bonus & retroactive salary increases is basically the same.

Calculate regular rate.

Multiply 0.5 of the regular rate by total number of overtime hours for the period.

The difference is the denominator for calculating regular rate.

Non-Discretionary Bonus: Use total number of hours worked for the period.

Salary Increase: Use total number of standard hours for the year.

Avoid retroactive salary increases – manually calculating additional FLSA Premium OT may be required.

Summary

In summary:

E210 Overtime Report is available beginning July 1, 2012. Watch out for situations when hours on the report may require close review and manual re-calculation.

Non-discretionary bonus & retroactive salary increase may require additional overtime pay.

If 205M wage type was used, manual recalculation & submission of Bonus/Supplemental ISR is required.

Overtime hours will be paid only when a Bonus/Supplemental ISR is submitted in SAP.

When unsure, consult your Divisional HR Office, Human Resources Representative, and Timekeeper.

Summary

This concludes our four-part FastFacts series.

Go to http://hopkinsfastfacts.org/ to access a recording of this and previous FastFacts.

Hours Worked & Time Off Plans – March 28, 2012

Understanding and Calculating Regular Rate – April 24, 2012

Tracking Time in E210 & Processing Overtime in SAP – May 10, 2012

Tracking, Calculating & Processing Overtime Scenarios – June 7, 2012

Polling Question

Are your interested in attending a live in-person session where Subject Matter Experts will be available to answer any specific questions you have regarding any of the four Compensation FastFacts events?

Polling Question

Please indicate which of the following topics you would like to review further:

1.Hours Worked2.Time Off Plans3.Calculating Regular Rate4.Tracking Time in E2105.Processing Overtime in SAP6.E210 Overtime Report

Polling Question

If a live in-person session is offered, what specific questions or topics would you like addressed?

We’re going to open the phone lines now!

There will be a slight pause, and then a recorded voice will provide instructions on how to ask questions over this conference call line.

We’ll be answering questions in the order that we receive them.

We’ll also be answering the questions that were emailed to us during the presentation.

If there’s a question that we can’t answer, we’ll do some research after this session, and then email the answer to all participants.

Q&A

Thank You!

Thank you for participating!We would love to hear from you.

Are there certain topics that you would like us to cover in future FastFacts sessions?Would you like to be a FastFacts presenter?Please email us at: [email protected]

Survey

Before we close, please take the time to complete a short survey.Your feedback will help us as we plan future FastFacts sessions.Click this link to access the survey… http://connect.johnshopkins.edu/fastfactssurvey/

Thanks again!

Slide 1 FastFacts Feature Presentation June 7, 2012 To dial in, use this phone number and...

Documents

Transcript of Slide 1 FastFacts Feature Presentation June 7, 2012 To dial in, use this phone number and...