How does the payroll system compute compensatory and overtime rates?
Compensatory and overtime rates are automatically calculated in the payroll system for Non-Exempt status employees only. If an employee is less than 100% effort, the part-time salary is converted to the full-time equivalent salary, and then divided by 1,950 to get the correct hourly rate. The overtime rate is calculated by taking the hourly rate x 1.5. Example: Jane is a non-exempt employee, is 80% effort, and earns an annual salary of $24,000. What is her hourly rate? • $24,000 80% = $30,000 Full-Time Equivalent • $30,000 1,950 = $15.38 per hour • $15.38 x 1.5 = $23.07 Overtime Rate • Interactive Time Calculator The Interactive Time Calculator was designed to assist University of Pittsburgh Nonexempt staff members correctly calculate hours on the Staff Time Record. The time calculator enables individuals to “plug in” the number of hours worked/earned for each day of the week and it will calculate time actually worked, regular time earned, compensatory time, and overtime earned for a o
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